Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Education and Military Affairs, to which was referred S.B. No. 2718 entitled:

begs leave to report as follows:

The purpose of this measure is to set forth a financial limit on the total maximum contribution per pupil that a nonprofit organization may be required to contribute in advance, should one decide to undertake the creation of a new century conversion charter school.

Your Committee received testimony in support of this measure from Waimea Middle School, the Office of Hawaiian Affairs, and one individual. Comments in support of the intent of this measure were received from the Charter School Administrative Office and Ho`okako`o Corporation. Comments in opposition to this measure were received from the Hawaii State Teachers Association.

Your Committee finds that setting per-pupil funding limits for nonprofit organizations that are considering supporting a new century charter school will act as an incentive to engage in public-private educational initiatives.

Your Committee has amended this measure by including amendments suggested by Ho`okako`o Corporation for nonprofit organization funding limits, and making technical, nonsubstantive amendments.

As affirmed by the record of votes of the members of your Committee on Education and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2718, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2718, S.D. 1, and be referred to the Committee on Ways and Means.