STAND. COM. REP. NO. 2340

Honolulu, Hawaii

RE: S.B. No. 2081

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 2081 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF EDUCATION COMMERCIAL ENTERPRISES REVOLVING FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Ensure that the Department of Education has a revolving fund into which it may deposit funds generated from the monetization of facilities to help cover future repair and maintenance costs;

(2) Establish the Department of Education Commercial Enterprises Revolving Fund to provide funds to be expended in the operation of commercial enterprises by the Department of Education; and

(3) Make an appropriation into the Department of Education Commercial Enterprises Revolving Fund.

Your Committee received testimony in support of this measure from the Department of Education and Chamber of Commerce Hawaii. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the Department of Education supports opportunities for students to participate in commercial enterprises in school and to monetize existing school facilities. This activity has the potential to provide students with the experiences necessary for post-secondary and workforce success, while providing, in many instances, funds for ongoing facility maintenance.

Your Committee further finds, however, that existing restrictions on the Department of Education's intake of revenue generated by commercial enterprises in public schools hampers the successful implementation and expansion of these enterprises.

Accordingly, your Committee finds that this measure will promote student success in education and the workforce and help bring a measure of self-sufficiency to school facility maintenance by removing certain fiscal barriers to the implementation and growth of commercial enterprises in public schools.

Your Committee has amended this measure by making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 2081, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2081, S.D. 1, and be referred to your Committee on Ways and Means.

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

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MICHELLE N. KIDANI, Chair