STAND. COM. REP. NO. 1124

Honolulu, Hawaii

RE: S.B. No. 856

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 856 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Auditor to conduct routine financial and management audits of the Department of Education, Superintendent of Education, Board of Education, and complex areas.

More specifically, this measure requires the Auditor to:

(1) Conduct a financial and management audit of the Department of Education, Superintendent of Education, Board of Education, and complex areas every three years; and

(2) Submit a report of its findings and recommendations to the Legislature following each audit.

Your Committee received written comments in support of this measure from Chamber of Commerce Hawaii, Maui Chamber of Commerce, and one individual.

Your Committee received written comments in opposition to this measure from the Hawaii State Teachers Association.

Your Committee received written comments on this measure from the Department of Education and Office of the Auditor.

Your Committee finds that routine audits will help to identify the financial and management needs of Department of Education schools.

Your Committee has amended this measure by:

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

(2) Making a technical nonsubstantive change for the purpose of style.

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. 856, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 856, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair