STAND. COM. REP. NO.  297-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2576

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Education, to which was referred H.B. No. 2576 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to support charter schools in Hawaii by establishing an income tax credit for contributions of money or in-kind goods and services for the development of charter school facilities.

The State Public Charter School Commission, Hawaii Public Charter Schools Network, Hawaii State Teachers Association, and two concerned individuals supported the measure.  The Department of Taxation, Department of Budget and Finance, and Tax Foundation of Hawaii submitted comments.  Rainbow Family 808 and a concerned individual opposed the measure.

     Your Committee has amended this measure by:

     (1)  Deleting the requirement that the State must not provide more than an unspecified sum in tax credits for contributions of in-kind services in Hawaii for the development of charter school facilities;

     (2)  Requiring the State Public Charter School Commission, rather than the Department of Education, to, among other things:

          (A)  Maintain records of;

          (B)  Verify;

          (C)  Total; and

          (D)  Certify,

contributions of in-kind goods and services for the development of charter school facilities; and

     (3)  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 H.B. No. 2576, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2576, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ROY M. TAKUMI, Chair