STAND. COM. REP. NO.  575

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 1015

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Hawaiian Affairs, to which was referred H.B. No. 1015 entitled:

 

"A BILL FOR AN ACT RELATING TO OBLIGATIONS OF THE DEPARTMENT OF HAWAIIAN HOME LANDS TRUST FUND,"

 

begs leave to report as follows:

 

     The purpose of this bill is to enable the Department of Hawaiian Home Lands (DHHL) to begin housing projects without having the full cost of the project on hand, by amending the law controlling trust fund expenditures to allow DHHL to incur obligations exceeding the amount in the DHHL trust fund when:

 

(1)  The trust fund will be receiving moneys enabling payment of the entire obligation within a reasonable time; and

 

(2)  The expenditure is approved by the Governor.

 

     The Department of Accounting and General Services and DHHL testified in support of this bill.

 

     Current law requires State-funded housing projects to have full capital financing before being allowed to proceed.  However, as DHHL often initiates projects that generate income streams through the selling or leasing of completed homes or improved lands, allowing them to proceed with building phases of a project with only those funds needed to complete that particular phase  appears to be reasonable.  This change in the law would reduce DHHL project costs and also would bring DHHL's development of projects more in-line with private industry standards that allow contractors to be bonded and to proceed with construction projects in phases.

 

     As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1015 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Hawaiian Affairs,

 

 

 

 

____________________________

MELE CARROLL, Chair