CONFERENCE COMMITTEE REPORT NO. 144

                            Honolulu, Hawaii
                                            , 2000

                            RE:   H.B. No. 1873
                                  H.D. 2
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 1873, H.D. 2, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO EDUCATION,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to:

     (1) Allow the Department of Education (DOE) to retain the
         excess federal impact aid, U.S. Department of Defense
         funds, and federal direct overhead reimbursements it
         receives, rather than depositing them into the general
         fund;

     (2) Allow the DOE to increase the federal fund expenditure
         ceiling for EDN 100 if the aforementioned federal funds
         received by the DOE exceed the authorized appropriation
         in the General Appropriations Act or the Supplemental
         Appropriations Act;

 
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     (3) Allow the DOE to retain the full amount of any general
         fund offset created by increased impact aid receipts to
         further carry out the purposes of EDN 100;

     (4) Create the Federal Grants Search and Application
         Revolving Fund for the deposit and expenditure of
         indirect overhead reimbursements; and 

     (5) Allow the Superintendent of Education to approve trust
         fund expenditures up to the amount of available
         revenues.

     Upon careful consideration, your Committee on Conference has
amended this bill by:

     (1) Allowing DOE to increase the federal fund expenditure
         ceiling for all program identification numbers when
         federal funds received exceed the authorized
         appropriation in the General Appropriations Act or the
         Supplemental Appropriations Act;

     (2) Allowing the DOE to retain any general fund offset
         created by increased impact aid receipts for any program
         identification number, provided that such funds shall
         not be used to create or expand programs;

     (3) Changing the name of the revolving fund to "Federal
         Grants Search, Development, and Application Revolving
         Fund";

     (4) Changing the effective date to July 1, 2000; and

     (5) Making technical, nonsubstantive changes for purposes of
         style and clarity.

     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of H.B. No. 1873, H.D. 2, S.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as H.B. No. 1873, H.D. 2, S.D. 1, C.D. 1.


 
 
 
 
 
 
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                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE SENATE          ON THE PART OF THE HOUSE
                                   
                                   
                                   
                                   
______________________________     ______________________________
DAVID Y. IGE, Co-Chair             KEN ITO, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
NORMAN SAKAMOTO, Co-Chair          BERTHA C. KAWAKAMI, Co-Chair




______________________________
CAROL FUKUNAGA, Co-Chair




______________________________
ANDREW LEVIN, Co-Chair