STAND. COM. REP. NO. 722

Honolulu, Hawaii

RE:    S.B. No. 160

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 160, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL MEALS,"

begs leave to report as follows:

     The purpose of this measure is to provide the Department of Education with the flexibility to adjust school meal prices to account for rising costs of providing school meals.

     Specifically, this measure:

(1)  Authorizes the Department of Education to set school meal prices at a rate of not less than one-half of the cost of preparing the meals, based upon the previous year's costs; and

(2)  Adds a definition of "school meals" to include both breakfast and lunch.

     Your Committee finds that the cost of preparing school meals is affected by the rising costs of fuel, food, and labor.  Your Committee further finds that as these costs rise, the Department of Education will require the flexibility to adjust the prices of school lunches accordingly.  Your Committee believes that this measure will afford the department the flexibility to compensate for rising costs and avoid the possibility of having to divert funds from other educational programs to pay for school meals.

     Upon further consideration, your Committee has amended this measure to clarify its intent.

     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. 160, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 160, S.D. 2.

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

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DONNA MERCADO KIM, Chair