Report Title:

Economic Development; Project EAST

Description:

Renames and amends the Hawaii 3Rs school and maintenance fund and related tax credits for the expansion of project EAST (environmental and spatial technology) initiative in Hawaii's public schools. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2661

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

(PROPOSED

S.D. 1)


 

A BILL FOR AN ACT

 

relating to economic development.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that technology-based jobs are high paying and important in helping to expand and diversify Hawaii's economy. Hawaii has recently made a concerted effort to attract high technology companies to Hawaii by enacting Act 221, Session Laws of Hawaii 2001, which provides a tax credit to qualifying high technology companies. In addition to these initiatives, Hawaii needs to develop a highly skilled and trained workforce to attract these high technology companies and jobs to Hawaii.

The project EAST (environmental and spatial technology) initiative started as a pilot program in the Maui district high schools during the summer of 2000 and later moved to Hawaii county and then a middle school on Kauai. Project EAST holds great potential for assisting Hawaii's public schools in developing important critical thinking, problem solving, and analytical skills in Hawaii's young people which are necessary to these individuals to succeed in high technology based jobs. Project EAST integrates cutting edge technology, such as computer assisted drafting, geographic information systems, global positioning systems, as well as computer graphic applications, such as soft image, into the educational curriculum. The goal of this initiative is to prepare students for the information technology age by providing a comprehensive project-based and student-centered learning program where the students are responsible for their own learning.

The project EAST initiative is a public-private partnership developed by business leaders and educators that has enabled technology-challenged schools to compete nationally and succeed. More important, this program enables students to develop crucial skills necessary for them to succeed in life while making the educational experience relevant and educational outcomes measurable.

The purpose of this Act is to support these private-public initiatives by amending the successful Hawaii 3Rs program for school repair and maintenance to include the expansion of the project EAST initiative or similar programs on all islands.

SECTION 2. Section 235-110.2, Hawaii Revised Statutes, is amended as follows:

1. By amending the title and subsections (a) and (b) to read:

"[[]§235-110.2[]] Credit for school technology laboratories, and school repair and maintenance. (a) There shall be allowed to each taxpayer licensed under chapter 444, 460J, or 464, who is subject to the tax imposed by this chapter, and does not owe the State delinquent taxes, penalties, or interest, a credit for contributions of in-kind services for school technology laboratories and for the repair and maintenance of public schools provided by the licensed taxpayer in Hawaii. The credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the credit determined under this section for the taxable year shall be equal to ten per cent of the value of contributions of in-kind services to the Hawaii school repair and maintenance fund for that taxable year; provided that the aggregate value of the contributions of in-kind services claimed by a taxpayer shall not exceed $40,000[.] for school repair and maintenance, and $           for school technology laboratories."

2. By amending subsections (f) and (g) to read:

"(f) The department of accounting and general services shall maintain records of the names of taxpayers eligible for the credit and the total value of in-kind services contributed for school technology laboratories and for the repair and maintenance of public schools for the taxable year. All contributions shall be verified by the department of accounting and general services. The department of accounting and general services shall total all contributions that the department certifies. Upon each determination, the department of accounting and general services shall issue a certificate to the taxpayer certifying:

(1) The amount of the contribution;

(2) That the taxpayer is licensed under chapter 444, 460J, or 464; and

(3) That the taxpayer has obtained a current and valid certificate signed by the director of taxation, showing that the taxpayer does not owe the State any delinquent taxes, penalties, or interest.

The taxpayer shall file the certificate from the department of accounting and general services with the taxpayer's tax return with the department of taxation. When the total amount of certified contributions reaches [$2,500,000,] $           the department of accounting and general services shall immediately discontinue certifying contributions and notify the department of taxation. In no instance shall the total amount of certified contributions exceed [$2,500,000] $           for each taxable year.

(g) The State shall provide not more than [$250,000] $           in tax credits for contributions of in-kind services in Hawaii for school technology laboratories and for the repair and maintenance of public schools."

SECTION 3. Section 302A-1502.4, Hawaii Revised Statutes, is amended as follows:

1. By amending the title and subsections (a) and (b) to read:

"[[]§302A-1502.4[]] Hawaii 3R's school technology laboratories and school repair and maintenance fund. (a) There is established the Hawaii 3R's school technology laboratories and school repair and maintenance fund (hereinafter, "fund") as a separate fund of Hawaii 3R's, a Hawaii nonprofit organization. Moneys received from the State, county, or federal government, private contributions of cash or other property, and the income and capital gains earned by the fund shall constitute its assets.

(b) Hawaii 3R's shall expend moneys from the fund in the form of either grants to organizations or contracts with private vendors for the repair and maintenance of public schools and school technology laboratory infrastructure in Hawaii in accordance with this section."

2. By amending subsection (q) to read:

"(q) The state comptroller shall submit an annual report of the progress of the Hawaii 3R's school technology laboratories and school repair and maintenance fund no later than twenty days prior to the convening of each regular session of the legislature."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2004; provided that section 2 shall apply to taxable years beginning after December 31, 2003.