Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Education and Military Affairs and Transportation and Government Operations, to which was referred S.B. No. 2720 entitled:

beg leave to report as follows:

The purpose of this measure is to repeal the implementation of the recommendations of the interagency working group established pursuant to part VIII of Act 51, Session Laws of Hawaii 2004, with respect to the transfer of functions from different state departments to the Department of Education (DOE).

The measure also delays the transfer of school health aides and public health nurses for one year.

Your Committees received testimony in support of this measure from the Departments of the Attorney General, Budget and Finance, Education, Health, Human Services, and Human Resources Development; the Hawaii Government Employees Association; and the Hawaii Business Roundtable.

Your Committees find that the working group recommendations with respect to the transfer of functions from the Department of the Attorney General and Department of Human Services to the DOE should not be enacted at this time as they are unnecessary. There is no function to transfer to the Department of Human Services, and the interaction between the DOE and the other two agencies is being handled by a memorandum of understanding or other similar documents. Your Committees also find that additional time is necessary for the transfer of functions from the Department of Budget and Finance to the DOE, and the transfer of the school health aides and nurses to the DOE, to continue implementation discussions and ensure a smooth transition.

Your Committees have amended this measure by eliminating the repeal of the transfer of functions from the Department of Budget and Finance, and by making technical, nonsubstantive amendments.

As affirmed by the records of votes of the members of your Committees on Education and Military Affairs and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2720, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2720, S.D. 1, and be referred to the Committee on Ways and Means.