SB79

THE SENATE	S.B. NO.	79
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO EDUCATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the interagency working group, established by Act 51, Session Laws of Hawaii 2004, commonly known as the "Reinventing Education Act of 2004," recommended that certain fiscal functions that were transferred from the department budget and finance to the department of education, be transferred back to the department of budget and finance.

The interagency working group's report to the 2007 legislature recommended that the fiscal functions should remain with the department of budget and finance, notwithstanding that the departments of education and budget and finance have improved the fiscal processes between the two departments. For example, the two departments signed a memorandum of understanding, effective June 28, 2006, which sets out new procedures to:

(1) Request allotments for capital improvement projects and the deposit of funds into the state educational facilities improvement special fund;

(2) Share information for fiscal issues, including debt service calculation, employee benefit calculations, and the funding of collective bargaining increases; and

(3) Increase the expenditure ceiling for federal funds destined for the department of education.

The recommended transfer of those fiscal functions back to the department of budget and finance is mutually agreeable with both departments, after extensive discussion and further review by the interagency working group that furnished critical analysis and extensive discussion of the issues and problems.

Based upon the foregoing, the purpose of this Act is to transfer back certain fiscal functions from the department of education to the department of budget and finance.

SECTION 2. Act 51, Session Laws of Hawaii 2004, as amended by Act 225, Session Laws of Hawaii 2006, is amended by amending sections 47 and 48 to read as follows:

"SECTION 2. Act 51, Session Laws of Hawaii 2004, is amended by amending sections 47 and 48 to read as follows:

SECTION 47. (a) All the rights, powers, functions, duties, and resources of[:

~~(1)~~ ~~The department of budget and finance relating to the:~~

~~(A)~~ ~~Funding of collective bargaining agreement increases; and~~

~~(B)~~ ~~Securing, administering use, and expending of federal funds and other aid, including their custodial supervision; and~~

~~(2) The~~] the department of health relating to school health aides and public health nurses who supervise school health aides[;]

are transferred to the department of education effective July 1, 2007, subject to repeal by subsequent legislation.

(b) All moneys budgeted in support of each position to be transferred to the department of education, including moneys for direct and indirect employee benefits, are transferred to the department of education effective July 1, 2007, subject to repeal by subsequent legislation.

SECTION 48. All resources, appropriations, records, equipment, databases, software, programming, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of accounting and general services[~~, department of budget and finance,~~] and the department of health relating to the functions transferred to the department of education shall be transferred with the functions to which they relate."

SECTION 3. Any materials described in section 48 of Act 51, Session Laws of Hawaii 2004, relating to the functions transferred to the department of education from the department of budget and finance shall be transferred to the department of budget and finance with the functions to which they relate.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on June 29, 2007.

INTRODUCED BY:	_____________________________