Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 425
                                     S.D. 3
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Education, to which was referred S.B. No.
425, S.D. 3, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to increase state revenue
through fees by:

     (1)  Authorizing the Department of Education (DOE) to charge
          fees for after-school and weekend programs; and

     (2)  Setting a formula for financing the adult and community
          education program at one-half from fees and one-half
          from the appropriation of public funds.

The bill also authorizes towing companies to charge a fee for
road clean-up.

     The Department of Commerce and Consumer Affairs submitted
testimony in support of the provisions prohibiting tow operators
from assessing charges other than those explicitly authorized by

     The DOE submitted testimony in opposition to the provisions
setting the formula for financing the adult and community
education program.  According to DOE, a fee increase will
jeopardize the approximately $1.3 million the program currently
receives in federal funds because tuition fees are not allowed to
be counted as part of the state's maintenance of effort.

                                 STAND. COM. REP. NO. 1305
                                 Page 2

     The Hawaii Insurers Council and an individual submitted
comments on the bill.

     Your Committee agrees with the DOE and has amended the bill

     (1)  Deleting the funding formula for financing the adult
          and community education program;

     (2)  Reflecting the revision to the bill in the purpose
          section; and

     (3)  Making technical, nonsubstantive revisions for style
          and clarity and to correct a drafting error.

     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.
425, S.D. 3, H.D. 1, as amended herein, and recommends that it be
referred to the Committee on Finance in the form attached hereto
as S.B. No. 425, S.D. 3, H.D. 2.

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

                                   KEN ITO, Chair