Bill Text: HI SB140 | 2010 | Regular Session | Amended

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Bill Title: Charter Schools; Special Purpose Revenue Bonds

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB140 Detail]

Download: Hawaii-2010-SB140-Amended.html

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STAND. COM. REP. NO. 107

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 140

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Education and Housing, to which was referred S.B. No. 140 entitled:

 

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to authorize the issuance of special purpose revenue bonds to not-for-profit organizations that support charter schools.

 

     Testimony in support of this measure was submitted by one state agency, three charter schools, and two private organizations.  Two state agencies submitted comments.  Copies of written testimony are available for review on the Legislature's website.

 

     Your Committee finds that this measure would address one of the major expenses of running a charter school – facilities costs.  A related measure, S.B. No. 139, proposes a constitutional amendment to authorize the State to issue special purpose revenue bonds and use the proceeds from the bonds to assist not-for-profit organizations that support charter schools.  Your Committee notes that such bonds are already authorized for not-for-profit private schools and early childhood education and care facilities.

 

     Your Committee has heard the concerns raised by the Department of Budget and Finance regarding federal tax implications and the ability of not-for-profit organizations to generate sufficient revenue for debt service repayment, and urges the parties to work together to resolve these issues.

 

     Your Committee has amended this measure by amending the effective date to July 1, 2040, for the purpose of encouraging further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 140, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 140, 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 and Housing,

 

		____________________________ NORMAN SAKAMOTO, Chair