SB1669 SD1.DOC

PART I

SECTION 1. The legislature finds that Hawaii's children deserve a quality education in a clean and safe environment. Many schools have leaky roofs, termite-infested floors, crumbling walls, and overheated classrooms. The legislature further finds that there is a compelling need to immediately fund the backlog of repair and maintenance projects in the public schools.

In 2001, the legislature appropriated funds to help mitigate the department of education's estimated $640,000,000 backlog of repair and maintenance projects. In 2007, the estimated backlog of repair and maintenance projects was $341,000,000 which included recurring major and minor repairs, ongoing cycle maintenance, service and contract maintenance, nonrecurring projects, and emergency repairs. Unfortunately, due in part to the governor's decision not to release $140,000,000 previously approved by the legislature during past legislative sessions for repair and maintenance projects of the department of education, the backlog remains and continues to increase. Since last year, the backlog has increased to approximately $421,000,000, and is expected to increase by an additional $75,000,000 during the upcoming fiscal year.

It is the intent of the legislature to reduce the backlog of repair and maintenance projects within the public schools to a manageable level. To meet this objective, this Act authorizes the issuance of general obligation bonds and appropriates $155,000,000 annually through fiscal year 2012 for repair and maintenance projects of the department of education. At the rate of $155,000,000 annually, the backlog will be reduced after three years, as follows:

FY2010 FY2011 FY2012

Current backlog $421,000,000 $341,000,000 $261,000,000

Annual increase $75,000,000 $75,000,000 $75,000,000

GO funding ($155,000,000) ($155,000,000) ($155,000,000)

Remaining R&M $341,000,000 $261,000,000 $181,000,000

The purpose of this part is to authorize the issuance of general obligation bonds and appropriate the revenues derived therefrom to reduce the backlog of repair and maintenance projects of the department of education.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2009-2010 for the purpose of funding the department of education's repair and maintenance projects.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2010-2011 for the purpose of funding the department of education's repair and maintenance projects.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the purpose of funding the department of education's repair and maintenance projects.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 5. The appropriations made for the capital improvement projects authorized by this part shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriations in section 2 and 3 unencumbered as of June 30, 2012, shall lapse as of that date; provided further that all moneys from the appropriation in section 4 unencumbered as of June 30, 2014, shall lapse as of that date.

PART II

SECTION 6. The purpose of this part is to provide a temporary exemption from chapter 103 and 103D, Hawaii Revised Statutes, to the department of education in order to expedite construction projects.

SECTION 7. (a) Chapter 302A, Hawaii Revised Statutes, notwithstanding, the department of education shall not be subject to chapter 103 and 103D, Hawaii Revised Statutes, and any and all other requirements of law for competitive bidding for contracts related to construction projects; provided that the department shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices.

(b) The department shall submit annual reports to the legislature no later than twenty days prior to the convening of the regular sessions of 2010 through 2013 on the status of the construction projects utilizing the exemptions established in subsection (a).

PART III

SECTION 8. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 9. This Act shall take effect on July 1, 2009, and the exemption granted in section 7 of this Act shall be repealed on June 30, 2012.

THE SENATE	S.B. NO.	1669
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII