SB2279.DOC

THE SENATE	S.B. NO.	2279
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO EDUCATION.

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

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. In 2008, the backlog increased to approximately $421,000,000 and declined slightly to $347,000,000 by September of 2009, but is expected to increase by an additional $75,000,000 during upcoming fiscal years.

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 $347,000,000 $267,000,000 $187,000,000

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 $267,000,000 $187,000,000 $107,000,000

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 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 3. The appropriation 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 appropriation in section 2 unencumbered as of June 30, 2012, shall lapse as of that date.

PART II

SECTION 4. The purpose of this part is to provide a temporary exemption from chapters 103 and 103D, Hawaii Revised Statutes, to the department of education in order to expedite construction projects.

SECTION 5. (a) Chapter 302A, Hawaii Revised Statutes, notwithstanding, the department of education shall not be subject to chapters 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 and services relating to construction projects, 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 2011 through 2013 on the status of the construction projects utilizing the exemptions established in subsection (a).

PART III

SECTION 6. 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 7. This Act shall take effect on July 1, 2010, and the exemptions granted in section 5 of this Act shall be repealed on June 30, 2012.

INTRODUCED BY:	_____________________________