STAND. COM. REP. NO. 538

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 Ways and Means, 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.

     The Department of Education submitted written comments in support of this measure.

     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.  However, this exploitation did not occur, and over the last five years, no revenues have been deposited into this fund from the commercial exploitation of products and services developed by the Department of Education.

     Your Committee further finds that pursuant to section 37-52.4(4), Hawaii Revised Statutes, the Legislature, in reviewing a revolving fund to determine whether it should be continued, is required to ensure that the fund, among other matters, demonstrates "the capacity to be financially self-sustaining."  Your Committee notes that in Auditor's Report No. 16-11, the Auditor recommended the repeal of the education research and development revolving fund because the fund could not meet this statutory requirement.

     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. 215 and recommends that it pass Third Reading.

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

________________________________

JILL N. TOKUDA, Chair