STAND. COM. REP. NO. 943

Honolulu, Hawaii

RE:    S.B. No. 94

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 94, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to establish the food distribution program revolving fund.

More specifically, this measure establishes a revolving fund to accept administrative fees paid to the Department of Education by recipients of commodity foods under the National School Lunch Program.  The Department of Education will expend funds from the revolving fund to offset the cost of warehousing commodity foods distributed under the National School Lunch Program.

     Your Committee received comments in support of this measure from the Department of Education.  The Department of Budget and Finance also submitted comments.

     Your Committee finds that the Department of Education distributes commodity foods to public schools, private schools, and other state institutions that participate in the National School Lunch Program.  The Department of Education paid in excess of $1,200,000 to store commodity foods in warehouses in fiscal year 2006 but is prohibited from using federal funds to pay warehouse fees.

     The revolving fund established under the measure, allows the Department of Education to use fees collected for, interest earned on, and other moneys associated with the food distribution program to support the continued operations of the food distribution program including payment for warehouse fees and allow the program to be self-sustaining.

     Your Committee has amended this measure by:

     (1)  Transferring the current funds for the warehousing and distribution of federal commodity foods to the food distribution program revolving fund; and

     (3)  Making technical nonsubstantive amendments for purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 94, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 94, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair