STAND. COM. REP. NO.  1048

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 389

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 389, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CAPITAL IMPROVEMENT PROJECTS,"

begs leave to report as follows:

     The purpose of this bill is to improve the efficiency of the allotment process for state capital improvement projects while ensuring fiscal responsibility.  Specifically, this bill requires the Legislative Reference Bureau (LRB) to review the memorandum of understanding (MOU) between the Department of Education (DOE) and Department of Budget and Finance (B&F) for the allotment of capital improvement projects, with the goal of replicating the processes of the MOU for use by other state agencies.

     DOE, B&F, and LRB offered comments.

     Your Committee has amended this bill by:

     (1)  Limiting possible replication of the MOU process to use by state agencies with many capital improvement projects that are predominantly funded by general obligation bonds; and

     (2)  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. 389, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 389, S.D. 1, H.D. 1, and be referred to the Committee on Legislative Management.

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

____________________________

ROY TAKUMI, Chair