STAND. COM. REP. NO. 53

Honolulu, Hawaii

RE:    S.B. No. 215

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 215 entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to repeal the education research and development revolving fund and transfer the unencumbered balance within that fund to the general revenues of the State.

     Your Committee received testimony in support of this measure from the Department of Education.

     Your Committee finds that the education research and development revolving fund was established in 2001 in anticipation of the potential commercial exploitation of a special education student information system developed by the Department of Education, but that this exploitation did not occur.  Section 37‑52.4(4), Hawaii Revised Statutes, requires that revolving funds "[demonstrate] the capacity to be financially self-sustaining".  Your Committee further finds that the Auditor, in Auditor's Report No. 16-11, recommended that the education research and development revolving fund be repealed because the fund could not meet that requirement.

     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 S.B. No. 215 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

________________________________

MICHELLE N. KIDANI, Chair