Establishes adopt-a-school program with DOE to which corporations would make tax-deductible contributions to fund school repair and maintenance. Establishes permanent task force on corporate donations for education to advise on adopt-a-school. (SD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the public school system infrastructure in the State of Hawaii is badly in need of repair, upgrading, and updating. The public education system is struggling because of the poorly-maintained condition of school facilities, and the lack of computers and other up-to-date equipment and supplies. Hawaii's young people are the future of the State. By ensuring that every child has access to a high-quality education, the State can provide the workforce of tomorrow with the skills necessary for a bright and successful future. Too many students are not receiving the full benefits of a high-quality education due to the state of school facilities, and lack of textbooks and other educational resources.

For many of Hawaii's children, school is the only stable environment that they experience. The State is in danger of hampering the educational development of a significant portion of an entire generation if it does not quickly address the problems of the public schools. The state of Hawaii is faced with the choice of providing solid, meaningful education to its young people to help them become productive members of society, or to ignore the problem, provide inadequate educational opportunities, and watch more and more youth disappear into an "ice" fog. The policy in Hawaii must be to ensure that every student has an equal chance to succeed. The State can no longer be content with the possibility that some students will succeed, despite the obstacles.

The purpose of this Act is to bridge the gaps in educational opportunities in Hawaii by:

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§302A-   Adopt-a-school program fund. (a) There is established the adopt-a-school program fund as a separate fund of the adopt-a-school corporation, a Hawaii nonprofit organization. Moneys received from the State, county, or federal government, private contributions of cash or other property, and the income and capital gains earned by the fund shall constitute its assets.

(b) The adopt-a-school corporation, in conjunction with the department of education, shall expend moneys from the fund in the form of a grant to a designated public school, or a contract with a private vendor, to perform necessary repairs, maintenance, and upgrades to any part of the public school system infrastructure in accordance with this section.

(c) The fund may receive contributions, grants, endowments, or gifts in cash or otherwise from all sources, including corporations or other businesses, foundations, government, individuals, and other interested parties. The legislature intends that public and private sectors, including the task force on corporate donations for education, review and investigate all potential funding sources. The State may appropriate moneys to the fund.

(d) In managing the moneys in the fund, the adopt-a-school corporation shall exercise ordinary business care and prudence given the facts and circumstances prevailing at the time of action or decision. In doing so, the adopt-a-school corporation shall consider its long-term and short-term needs in carrying out its purposes and its present and anticipated financial requirements.

(e) There may be an endowment component of the fund, and the adopt-a-school corporation may accumulate net income and add the same to the principal.

(f) The use of any state moneys may be restricted by the legislation appropriating these moneys to the fund.

(g) The adopt-a-school corporation may expend principal from the fund for the purposes of the fund.

(h) All proposals submitted to the adopt-a-school corporation for moneys shall be approved by the department for consistency in meeting standards for public schools.

(i) Any school to which moneys are awarded shall agree to comply with the following conditions before receiving the award:

(j) Chapter 103D shall not apply to organizations or agencies that apply for contracts under this section; provided that the adopt-a-school corporation shall be held accountable for the use of the funds under a contract with the department.

(k) Any contract awarded by the adopt-a-school corporation shall be made with as much competition as is practical to execute its purposes.

(l) The fund shall be audited annually by an independent auditor. The results of each annual audit shall be submitted to the department not later than thirty days from the date the adopt-a-school corporation receives the audit results. In addition, the adopt-a-school corporation shall retain any documents, papers, books, records, and other evidence that are pertinent to the fund, for a period of three years, and permit the department, state legislators, and the auditor, or their duly authorized representatives, to inspect and have access to them.

(m) The fund shall not be placed in the state treasury, and the State shall not administer the fund, nor shall the State be liable for the operation or solvency of the fund of the adopt-a-school corporation.

(n) For every dollar of state moneys granted by the fund to the project, there shall be a minimum of $1 in value matched by the adopt-a-school corporation in cash, or the fair market value of in-kind donations, real property, or any other item of value from federal, state, or county governments, private entities, community-based organizations, non-profit organizations, or individuals.

(o) The superintendent of education shall submit an annual report of the progress of the adopt-a-school program fund no later than twenty days prior to the convening of each regular session of the legislature.

§302A-   Task force on corporate donations for education. (a) There is created the task force on corporate donations for education. The task force shall be placed within the department of education for administrative purposes and shall consist of no more than twenty-five members appointed by the governor as provided in section 26-34.       of the members shall be appointed from a list of       nominees submitted by the speaker of the house of representatives and       shall be appointed from a list of       nominees submitted by the president of the senate. The task force shall include at least one representative from each of the following state agencies and organizations: the department of education, an administrator of a Hawaii public school, and the Hawaii air ambulance keiki program.

(b) The goals of the task force shall be to:

(c) The members of the task force shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(d) The task force shall submit an annual report of its findings and recommendations no later than twenty days prior to the convening of each regular session of the legislature."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000, or so much thereof as may be necessary for fiscal year 2006-2007, to carry out the purposes of this Act relating to the adopt-a-school program fund.

SECTION 4. The sum appropriated shall be expended by the adopt-a-school corporation in conjunction with the department of education for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2006.