Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 119
                                        S.D. 1

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


     Your Committee on Education and Technology, to which was
referred S.B. No. 119 entitled: 


begs leave to report as follows:

     The purpose of this measure is to allow the Department of
Education (DOE) more flexibility in the effective use of school-
level minor repairs and maintenance accounts.

     Your Committee received testimony in support of this measure
from the DOE and Department of Accounting and General Services

     Specifically, this measure:

     (1)  Changes the name of the minor repairs and maintenance
          accounts to the minor repairs, maintenance, and
          improvements accounts (accounts);

     (2)  Raises the amount allowed to each school for the
          school-level minor repairs and maintenance accounts to

     (3)  Allows a principal to request DAGS to perform repair
          and maintenance services rather than contracting out
          for them, with a transfer of funds from the accounts to
          DAGS; and

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                                   Page 2

     (4)  Requires DAGS to report to the legislature before each
          regular session on the activities of the accounts.

     Your Committee believes that allowing school principals more
flexibility in spending moneys in the accounts would enable them
to timely undertake minor repairs and improvements.

     Your Committee wishes to clarify that the $20,000 limit is a
maximum amount which need not be spent in its entirety.  Any
savings should inure to the benefit of the particular school for
other uses.

     Your Committee has amended this measure by:

     (1)  Providing that unencumbered funds in the accounts do
          not lapse into the general fund, to allow the
          accumulation of funds in the accounts;

     (2)  Deleting the appropriation section; and

     (3)  Changing the effective date to upon approval.

     Your Committee also has made technical, nonsubstantive

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 119, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 119,
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

                                   DAVID Y. IGE, Chair

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