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 Labor, to which was referred S.B. No. 3194 entitled:

beg leave to report as follows:

The purpose of this measure is to improve teacher incentives.

Specifically, this measure provides teachers with:

Your Committees received testimony in support of the intent of this measure from the Department of Education, the University of Hawaii at Manoa, the Hawaii Teacher Standards Board, and twenty-seven individuals. Comments in opposition to this measure were received from the Departments of Taxation and Budget and Finance. Comments to this measure were received from the Hawaii State Teachers Association and the Tax Foundation of Hawaii.

Your Committees find that certain provisions in this measure required clarification, specifically, those relating to the various types of tax relief provided for teacher housing, the provision for time off given to teachers to pursue national board certification, and the amount of biannual salary increase for teachers earning more than $50,000.

Your Committees have amended this measure by clarifying these provisions, by merging two sections that amended the same statute, 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 Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3194, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3194, S.D. 1, and be referred to the Committee on Ways and Means.