Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 389
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Ways and Means, to which was referred H.B.
No. 389, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to improve the education of
students in Hawaii's public schools.

     This measure provides two approaches.  The first approach is
appropriating $1 to the Learn and Serve Hawaii programs that will
supplement the $74,000 in federal funds received annually by the
Department of Education.  The second approach establishes an
income tax credit for taxpayers who purchase a laptop computer to
be used by a student for educational purposes in an amount equal
to twenty per cent of the cost of the laptop.

     Your Committee finds that the Learn and Serve program which
combines community service with school learning, is a valuable
program that benefits the students and the community.  Your
Committee also finds that providing an income tax credit to
taxpayers for the purchase of a laptop computer for educational
purposes may be an impetus for families who have considered
purchasing one in the past and would like to provide their
children with access to the twenty-first century twenty-four
hours a day, seven days a week.  Getting more laptops to students

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will help students develop the skills necessary to become highly
productive and sought after employees.

     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 H.B. No.
389, S.D. 1, and recommends that it pass Third Reading.

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

                                 CAROL FUKUNAGA, Co-Chair

                                 ANDREW LEVIN, Co-Chair

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