STAND. COM. REP. NO.  1132

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 686

      S.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 686, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION FUNDING,"

begs leave to report as follows:

The purpose of this measure is to increase funding for public education by establishing education surcharges on residential investment property and visitor accommodations to provide a quality education to all of Hawaii's children.  The proceeds of the surcharges would be deposited into the Education Special Fund.

The Board of Education, Hawaii Teacher Standards Board, Hawaii State Teachers Association, IMUAlliance, Hawaii Alliance for Progressive Action, Hui for Excellence in Education, Maui Academy of Healing Arts, Parents for Public Schools of Hawaii, Americans for Democratic Action, Hawaii Public Charter Schools Network, Committee for Education Funding, and numerous individuals testified in support of this measure.  The Hawaii Children's Action Network testified in support of this measure with amendments.  The Office of the Mayor of the County of Hawaii, Chair of the Maui County Council, The Chamber of Commerce Hawaii, Building Industry Association of Hawaii, Hawaii Lodging & Tourism Association, Rental By Owner Awareness Association, American Resort Development Association Hawaii, Maui Hotel & Lodging Association, Hawaii Association of REALTORS, Coalition for Equal Taxation, and several concerned individuals testified in opposition to this measure.  The Department of Education, Department of Budget and Finance, Office of the Mayor of the City and County of Honolulu, Tax Foundation of Hawaii, and Autism Society of Hawaii provided comments.

     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. 686, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Judiciary.

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

____________________________

JUSTIN H. WOODSON, Chair