STAND. COM. REP. NO. 1600

Honolulu, Hawaii

RE:    H.C.R. No. 119

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committees on Education and Ways and Means, to which was referred H.C.R. No. 119 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE EXECUTIVE OFFICE ON EARLY LEARNING, IN CONSULTATION WITH THE DEPARTMENT OF BUDGET AND FINANCE, TO CONDUCT A STUDY ON THE FEASIBILITY OF USING SOCIAL IMPACT BONDS TO FUND EARLY LEARNING PROGRAMS AND SERVICES IN THE STATE,"

beg leave to report as follows:

     The purpose and intent of this measure is to request the Executive Office on Early Learning, in consultation with the Department of Budget and Finance, to conduct a study on the feasibility of using social impact bonds to fund early learning programs and services in the State.

     Your Committees received testimony in support of this measure from the Executive Office on Early Learning, Hawaii Association of Independent Schools, and Good Beginnings Alliance.  Your Committees received comments on this measure from the Legislative Reference Bureau.

     Your Committees find that social impact bonds connect private investors with government entities to fund social programs and services with no initial outlay of taxpayer funds.  Your Committees further find that the use of social impact bonds has been successful in New York City and that social impact bonds are currently being used to fund programs aimed at reducing youth recidivism rates.

     Your Committees believe that further study is needed to determine whether social impact bonds are a feasible method of funding early learning programs and services in the State.

     Your Committees have amended this measure by:

     (1)  Requesting the Department of Budget and Finance, rather than the Executive Office on Early Learning, to conduct a study on the feasibility of using social impact bonds to fund early learning programs and services in the State;

     (2)  Requesting the Department of Budget and Finance to consult with the Executive Office on Early Learning, Department of Human Services, and Department of Education when considering various issues, including the feasibility of establishing a social bond pilot program, and when submitting a report to the Legislature;

     (3)  Amending the title of this measure to read: "REQUESTING THE DEPARTMENT OF BUDGET AND FINANCE TO CONDUCT A STUDY ON THE FEASIBILITY OF USING SOCIAL IMPACT BONDS TO FUND EARLY LEARNING PROGRAMS AND SERVICES IN THE STATE"; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Education and Ways and Means that are attached to this report, your Committees concur with the intent and purpose of H.C.R. No. 119, as amended herein, and recommend its adoption in the form attached hereto as H.C.R. No. 119, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Education and Ways and Means,

____________________________ DAVID Y. IGE, Chair

____________________________ JILL N. TOKUDA, Chair