SB1383 HD1.DOC

SECTION 1. The legislature finds that the backlog of repair and maintenance projects in public schools continues to be of concern and that all means of addressing the problem should be explored and supported.

The legislature further finds that Hawaii 3R's has saved the State money by completing repair and maintenance projects at public schools - repairs that ordinarily would be done with only state funds and resources. Hawaii 3R's generates savings for the State by leveraging state grant funds with federal funds, private donations, and volunteerism or "sweat equity" from various community organizations and businesses.

Since its inception in 2001, Hawaii 3R's has saved the State an estimated $36,700,000. This figure is determined by taking the State's official estimated cost of the repair and maintenance projects completed in Hawaii 3R's projects ($39,600,000) and subtracting the amount of state grant funds expended to support Hawaii 3R's ($2,900,000). This means that for every $1 invested in Hawaii 3R's by the State, over $12 worth of work is completed. It is also noteworthy that Hawaii 3R's has statewide reach, with five hundred three grants awarded to one hundred seventy-five different schools on the islands of Oahu, Maui, Molokai, Lanai, Kauai, and Hawaii.

The legislature acknowledges that Hawaii 3R's also has built a partnership with the Joint Venture Education Forum, a partnership between the department of education and the United States Pacific Command. This relationship benefits not only military-impacted or military-partnered schools but all of Hawaii's public schools through increased military partnerships. Through Joint Venture Education Forum (i.e., federal) funding, Hawaii 3R's can provide grants to over one hundred militaryimpacted, dependent, or partnered schools.

The legislature is encouraged by the level of support that the community has given to Hawaii 3R's and, more importantly, to the public schools. Skilled and unskilled volunteer labor from private businesses, the military, civic clubs, churches, teachers, parents, and students, combined with donations from community businesses and foundations, have all contributed to the success of Hawaii 3R's. In addition, Hawaii's trade unions and associations have been lending invaluable support. Overall, over two thousand five hundred people have provided over ten thousand hours of volunteer labor.

The legislature understands that it is necessary to continue to provide state funding to support Hawaii 3R's and to fund grants that cannot be funded through Hawaii 3R's other funding sources, especially given the uncertainty of the availability of federal funds in the future. Hawaii 3R's has proven to be a worthy means to invest in the condition of public school facilities and to promote community involvement. Hawaii 3R's has proven to be an efficient organization by keeping administrative costs below ten per cent of overall expenses.

The legislature finds that Hawaii 3R's serves the public purpose and the purpose of this Act is to support the continuation of this valuable work by re-directing funds generated by the two dollar income tax check-off into the Hawaii 3R's school repair and maintenance fund, and appropriating general funds to Hawaii 3R's to expedite the repair and maintenance of Hawaii's public schools.

SECTION 2. Section 302A-1502.4, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The fund may receive contributions, grants, endowments, or gifts in cash or otherwise from all sources, including corporations or other businesses, foundations, government, individuals, and other interested parties. The fund shall also receive moneys transferred to it from the school-level minor repairs and maintenance special fund established under section 302A-1504.5. The legislature intends that public and private sectors review and investigate all potential funding sources. The State may appropriate moneys to the fund; provided that any appropriations made by the State are not intended to supplant the funding of any existing school-level minor repairs and maintenance programs[~~, including [school-level minor repair and maintenance account] established under section 302A-1504~~]."

SECTION 3. Section 302A-1504.5, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1504.5 School-level minor repairs and maintenance special fund[[];[]] reporting of carry over funds. (a) There is established within the state treasury a special fund to be known as the school-level minor repairs and maintenance special fund, into which shall be deposited all moneys collected pursuant to section 235-102.5(b), and any other moneys received by the department in the form of grants and donations for school-level minor repairs and maintenance[.]; provided that all moneys collected pursuant to section 235-102.5(b) shall be transferred to the Hawaii 3R's school repair and maintenance fund to fund school repair and maintenance pursuant to section 302A-1502.4. The special fund shall be administered by the department [~~and used to fund school-level minor repairs and maintenance~~].

(b) The department shall submit to the director of finance a report that shall be prepared in the form prescribed by the director of finance and shall identify the total amount of funds in the school-level minor repairs and maintenance special fund that will carry over to the next fiscal year[.] and the amount of funds that were transferred to the Hawaii 3R's repair and maintenance fund as provided in subsection (a). The department shall submit the report to the director of finance within ninety days of the close of each fiscal year and a copy of the report to the legislature no later than twenty days prior to the convening of each regular session."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for deposit into the Hawaii 3R's school repair and maintenance fund under section 302A-1502.4, Hawaii Revised Statutes.

SECTION 5. There is appropriated out of the Hawaii 3R's school repair and maintenance fund the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 as a grant pursuant to chapter 42F, Hawaii Revised Statutes, to Hawaii 3R's.

The sums appropriated shall be expended by the department of education for the purposes of this Act.

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. It is the intent of this Act to neither jeopardize the receipt of any federal aid nor impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any modification with reasons for the modification to the legislature at its next regular session for review.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	1383
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 2
STATE OF HAWAII		H.D. 1