STAND. COM. REP. NO.  1333

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 1820

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 1820, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

begs leave to report as follows:

     The purpose of this bill is to increase the availability of school facilities and therefore improve the learning environment for Hawaii's students by allowing the Board of Education (BOE) more flexibility in acquiring new school design and construction projects.  Specifically, this bill:

     (1)  Authorizes BOE to enter into financing agreements with the concurrence of the Director of Finance and without the approval of the Comptroller; and

     (2)  Creates a new account within the State Educational Facilities Improvement Special Fund for lease payments required by financing agreements entered into by BOE.

     The Maui Land & Pineapple Company, Inc., and several concerned individuals testified in support of this bill.  The Department of Education (DOE) supported the intent of this measure.  The Department of Budget and Finance and Department of Accounting and General Services opposed this bill.

     Your Committee has amended this bill by:

     (1)  Clarifying that DOE, rather than BOE, is authorized to enter into financing agreements;

     (2)  Restricting the use of lease payments to new schools included within DOE's current six-year capital improvements program, which are DOE priority projects;

     (3)  Clarifying that DOE may enter into contracts, leases, lease-purchase agreements, or other transactions necessary for the acquisition of public school facilities with the concurrence of the Director of Finance; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1820, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1820, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

ROY TAKUMI, Chair