CONFERENCE COMMITTEE REP. NO. 79-10

 

Honolulu, Hawaii

                 , 2010

 

RE:    S.B. No. 506

       S.D. 1

       H.D. 3

       C.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam and Sir:

 

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 506, S.D. 1, H.D. 3, entitled:

 

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

 

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 measure is to provide that, in any contract pursuant to section 264-33, Hawaii Revised Statutes, which relates to the State's or county's obligation to pay for work required to relocate utility facilities due to work on a state highway or a state or county federal-aid highway that involves not only state or county funds, but also supplemental funds from the utility, the utility's portion of the required funds is also subject to certification in section 103D-309, Hawaii Revised Statutes, as to the sufficiency of funds, and certification is to be based on amounts to be paid by a utility under a legal agreement with the State or county.

 

     Your Committee on Conference finds that, in the past, disagreements between the State and utilities on the interpretation of section 103D-309, Hawaii Revised Statutes, have resulted in the State requiring utilities to provide funds upfront.  The proposed changes to section 103D-309, Hawaii Revised Statutes, will allow utilities to make progress payments instead of providing the funds up front, a transaction format that they would prefer, provided that a memorandum of agreement is reached with the state or county agency.  This will allow the utilities to also hold onto their funds until the actual utility work is physically started, which can sometimes be one to two years after the original funds were required for certification.  This arrangement would be a much fairer relationship between the utilities and the State or counties.

 

     Your Committee on Conference has amended this measure by inserting an effective date of July 1, 2010. 

 

     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 S.B. No. 506, S.D. 1, H.D. 3, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 506, S.D. 1, H.D. 3, C.D. 1.

 

Respectfully submitted on behalf of the managers:

 

ON THE PART OF THE HOUSE

 

ON THE PART OF THE SENATE

 

____________________________

ANGUS L.K. MCKELVEY, Co-Chair

 

____________________________

BRIAN T. TANIGUCHI, Chair

____________________________

ROBERT N. HERKES, Co-Chair

 

 

____________________________

ISAAC W. CHOY, Co-Chair