STAND. COM. REP. NO. 2829

Honolulu, Hawaii

RE:    S.B. No. 2517

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2517, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHARTER SCHOOLS,"

begs leave to report as follows:

     The purpose and intent of this measure is to address public charter school infrastructure needs.

Specifically, the measure:

(1)  Authorizes the State Public Charter School Commission to request the issuance of general obligation bonds to fund the design, planning, construction, repair, and maintenance of charter school facilities;

(2)  Authorizes the issuance of such bonds and appropriates the proceeds therefrom for fiscal year 2014-2015 for the purposes of this measure; and

(3)  Establishes the charter school facilities funding working group to prioritize the allocation of general obligation proceeds and requires an annual report to the Legislature on general obligation bond proceeds expenditures.

     Your Committee received written comments in support of this measure from the Department of Budget and Finance, the State Public Charter School Commission, Hawaii State Teachers Association, Kanu o ka Aina NCPCS, Hawaiian Educational Council, Hawaii Public Charter Schools Network, and thirteen individuals.  Two individuals submitted written comments on this measure.

     Your Committee notes that the repair, maintenance, and construction of charter school facilities must be expended from operational funds of the schools.  Your Committee finds that authorizing the State Public Charter School Commission to request general obligation bonds from the Director of Finance will provide additional funding for charter schools to address facility shortcomings without expending operational funds.

     Your Committee has amended this measure by:

(1)  Codifying in Chapter 302D, Hawaii Revised Statutes, relating to public charter schools, the provisions establishing the working group, the annual report, and the authority of the State Public Charter School Commission to request the issuance of general obligation bonds;

(2)  Changing the appropriation to an unspecified amount;

(3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2517, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2517, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair