Bill Text: HI SB458 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Educational Facilities Improvement Special Fund

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Passed) 2013-06-25 - Act 157, on 6/21/2013 (Gov. Msg. No. 1260). [SB458 Detail]

Download: Hawaii-2013-SB458-Amended.html

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STAND. COM. REP. NO. 119

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 458

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Education, to which was referred S.B. No. 458 entitled:

 

"A BILL FOR AN ACT RELATING TO THE STATE EDUCATIONAL FACILITIES IMPROVEMENT SPECIAL FUND,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Remove the requirement that general excise tax revenues be deposited into the state educational facilities improvement special fund;

 

     (2)  Limit expenditures from the state educational facilities improvement special fund to projects authorized by the Legislature for fiscal years ending prior to July 1, 2014;

 

     (3)  Limit lease payments required by financing agreements paid from the state educational facilities improvement special fund to lease payments required by financing agreements entered into prior to July 1, 2013; and

 

     (4)  Repeal the state educational facilities improvement special fund on July 1, 2023.

 

     Your Committee received testimony in support of this measure from the Department of Budget and Finance.  Your Committee received testimony in opposition to this measure from the Department of Education.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that the state educational facilities improvement special fund was first established pursuant to Act 368, Session Laws of Hawaii 1989.  Over the years, capital improvement projects for Department of Education facilities have generally been authorized and funded with state educational facilities improvement special fund monies, which are then capitalized through general obligation bond revenue.

 

     While your Committee recognizes the opposing concerns raised by the Department of Education and the Department of Budget and Finance, your Committee encourages further discussion on the necessity of retaining the state educational facilities improvement special fund.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments 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. 458, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 458, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

		____________________________ JILL TOKUDA, Chair