Bill Text: HI SB2598 | 2012 | Regular Session | Introduced
Bill Title: Charter Schools; Constitutional Amendment
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2012-03-08 - (H) Referred to EDN, JUD, FIN, referral sheet 41 [SB2598 Detail]
Download: Hawaii-2012-SB2598-Introduced.html
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THE SENATE |
S.B. NO. |
2598 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
PROPOSING AMENDMENTS TO THE HAWAII STATE CONSTITUTION RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to propose amendments to article VII, section 12, and article X, section 1, of the Hawaii State Constitution to authorize the State to issue special purpose revenue bonds, and use the proceeds from those bonds, to assist charter schools, not-for-profit corporations that support charter schools, and community development financial institutions that support charter schools.
SECTION 2. Article VII, section 12, of the Constitution of the State of Hawaii is amended to read as follows:
"DEFINITIONS; ISSUANCE OF INDEBTEDNESS
Section 12. For the purposes of this article:
1. The term "bonds" shall include bonds, notes and other instruments of indebtedness.
2. The term "general obligation bonds" means all bonds for the payment of the principal and interest of which the full faith and credit of the State or a political subdivision are pledged and, unless otherwise indicated, includes reimbursable general obligation bonds.
3. The term "net revenues" or "net user tax receipts" means the revenues or receipts derived from:
a. A public undertaking, improvement or system remaining after the costs of operation, maintenance and repair of the public undertaking, improvement or system, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made; or
b. Any payments or return on security under a loan program or a loan thereunder, after the costs of operation and administration of the loan program, and the required payments of the principal of and interest on all revenue bonds issued therefor, have been made.
4. The term "person" means an individual, firm, partnership, corporation, association, cooperative or other legal entity, governmental body or agency, board, bureau or other instrumentality thereof, or any combination of the foregoing.
5. The term "rates, rentals and charges" means all revenues and other moneys derived from the operation or lease of a public undertaking, improvement or system, or derived from any payments or return on security under a loan program or a loan thereunder; provided that insurance premium payments, assessments and surcharges, shall constitute rates, rentals and charges of a state property insurance program.
6. The term "reimbursable general obligation bonds" means general obligation bonds issued for a public undertaking, improvement or system from which revenues, or user taxes, or a combination of both, may be derived for the payment of the principal and interest as reimbursement to the general fund and for which reimbursement is required by law, and, in the case of general obligation bonds issued by the State for a political subdivision, general obligation bonds for which the payment of the principal and interest as reimbursement to the general fund is required by law to be made from the revenue of the political subdivision.
7. The term "revenue bonds" means all bonds payable from the revenues, or user taxes, or any combination of both, of a public undertaking, improvement, system or loan program and any loan made thereunder and secured as may be provided by law, including a loan program to provide loans to a state property insurance program providing hurricane insurance coverage to the general public.
8. The term "special purpose revenue bonds" means all bonds payable from rental or other payments made to an issuer by a person pursuant to contract and secured as may be provided by law.
9. The term "user tax" means a tax on goods or services or on the consumption thereof, the receipts of which are substantially derived from the consumption, use or sale of goods and services in the utilization of the functions or services furnished by a public undertaking, improvement or system; provided that mortgage recording taxes shall constitute user taxes of a state property insurance program.
The legislature, by a majority vote of the members to which each house is entitled, shall authorize the issuance of all general obligation bonds, bonds issued under special improvement statutes and revenue bonds issued by or on behalf of the State and shall prescribe by general law the manner and procedure for such issuance. The legislature by general law shall authorize political subdivisions to issue general obligation bonds, bonds issued under special improvement statutes and revenue bonds and shall prescribe the manner and procedure for such issuance. All such bonds issued by or on behalf of a political subdivision shall be authorized by the governing body of such political subdivision.
Special purpose revenue bonds shall only be authorized or issued to finance facilities of or for, or to loan the proceeds of such bonds to assist:
1. Manufacturing, processing, or industrial enterprises;
2. Utilities serving the general public;
3. Health care facilities provided to the general public by not-for-profit corporations;
4. Early childhood education and care facilities provided to the general public by not-for-profit corporations;
5. Low and moderate income government housing programs;
6.
Not-for-profit private nonsectarian and sectarian elementary schools, secondary
schools, colleges and universities; [or]
7.
Agricultural enterprises serving important agricultural lands[,]; or
8. Charter schools, not-for-profit corporations that support charter schools, and community development financial institutions that support charter schools,
each of which is hereinafter referred to in this paragraph as a special purpose entity.
The legislature, by a two-thirds vote of the
members to which each house is entitled, may enact enabling legislation for the
issuance of special purpose revenue bonds separately for each special purpose
entity, and, by a two-thirds vote of the members to which each house is
entitled and by separate legislative bill, may authorize the State to issue
special purpose revenue bonds for each single project or multi-project program
of each special purpose entity; provided that the issuance of such special
purpose revenue bonds is found to be in the public interest by the legislature;
and provided further that the State may combine into a single issue of special
purpose revenue bonds two or more proposed issues of special purpose revenue
bonds to assist not-for-profit private nonsectarian and sectarian elementary
schools, secondary schools, colleges, [and] universities, charter
schools, not-for-profit corporations that support charter schools, and
community development financial institutions that support charter schools, separately
authorized as aforesaid, in the total amount of not exceeding the aggregate of
the proposed separate issues of special purpose revenue bonds. The legislature
may enact enabling legislation to authorize political subdivisions to issue
special purpose revenue bonds. If so authorized, a political subdivision by a
two-thirds vote of the members to which its governing body is entitled and by
separate ordinance may authorize the issuance of special purpose revenue bonds
for each single project or multi-project program of each special purpose
entity; provided that the issuance of such special purpose revenue bonds is
found to be in the public interest by the governing body of the political
subdivision. No special purpose revenue bonds shall be secured directly or
indirectly by the general credit of the issuer or by any revenues or taxes of
the issuer other than receipts derived from payments by a person or persons
under contract or from any security for such contract or contracts or special
purpose revenue bonds and no moneys other than such receipts shall be applied
to the payment thereof. The governor shall provide the legislature in November
of each year with a report on the cumulative amount of all special purpose
revenue bonds authorized and issued, and such other information as may be
necessary."
SECTION 3. Article X, section 1, of the Constitution of the State of Hawaii is amended to read as follows:
"PUBLIC EDUCATION
Section 1. The State shall provide for the establishment, support and control of a statewide system of public schools free from sectarian control, a state university, public libraries and such other educational institutions as may be deemed desirable, including physical facilities therefor. There shall be no discrimination in public educational institutions because of race, religion, sex or ancestry; nor shall public funds be appropriated for the support or benefit of any sectarian or nonsectarian private educational institution, except that proceeds of special purpose revenue bonds authorized or issued under section 12 of Article VII may be appropriated to finance or assist:
1. Not-for-profit corporations that provide
early childhood education and care facilities serving the general public; [and]
2. Not-for-profit private nonsectarian and
sectarian elementary schools, secondary schools, colleges and universities[.];
and
3. Charter schools, not-for-profit corporations that support charter schools, and community development financial institutions that support charter schools."
SECTION 4. The question to be printed on the ballot shall be as follows:
"Shall the Hawaii State Constitution be amended to authorize the State to issue special purpose revenue bonds and use the proceeds from the bonds to assist charter schools, not-for-profit corporations that support charter schools, and community development financial institutions that support charter schools?"
SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.
SECTION 6. This amendment shall take effect upon compliance with article XVII, section 3, of the Hawaii State Constitution.
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INTRODUCED BY: |
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Report Title:
Charter Schools; Constitutional Amendment
Description:
Proposes a constitutional amendment to authorize the State to issue special purpose revenue bonds to assist charter schools, not-for-profit corporations that support charter schools, and community development financial institutions that support charter schools.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
