STAND. COM. REP. NO. 87

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 94

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Education, to which was referred S.B. No. 94 entitled:

 

"A BILL FOR AN ACT RELATING TO EDUCATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to establish a revolving fund to support the Department of Education's food distribution program.

 

     Testimony in support of this measure was submitted by the Department of Education (DOE).  Testimony in opposition to this measure was submitted by the Department of Budget and Finance.

 

     Your Committee finds that the DOE provides commodity foods to agencies, including public schools, private schools, and other state institutions, that participate in the National School Lunch Program.  Commodity foods are currently stored in warehouses within the State; however, the DOE is prohibited from using federal funds to pay fees associated with the state-contracted warehouses.  Your Committee further finds that, according to the DOE, warehouse charges for fiscal year 2006 totaled in excess of $1.2 million.  As the DOE is unable to continue to shoulder the costs of warehouse expenses on its own, it is forced to recover a portion of the costs from those agencies that are the recipients of commodity foods.

 

     Your Committee determines that the establishment of a revolving fund, funded through the collection of fees collected for, interest earned on, and other moneys associated with the DOE's food distribution program, is necessary to support the continued operations of the food distribution program and allow it to be a self-sustaining program.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Including an appropriation out of the food distribution program revolving fund for the payment of services provided by state contracted warehouses under the DOE food distribution program; and

 

     (2)  Making technical, nonsubstantive amendments for purposes of clarity and style.

 

     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. 94, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 94, 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,

 

 

 

____________________________

NORMAN SAKAMOTO, Chair