STAND. COM. REP. NO. 956

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 318

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Government Operations, to which was referred H.B. No. 318, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO GOVERNMENT BUILDINGS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to exempt contracts for concessions or space set aside on public property for sponsorship or naming rights of state and county buildings from the sealed bid process and fifteen year limitation on concession contracts.

 

     Your Committee received testimony in support of this measure from the Stadium Authority and City and County of Honolulu Department of Parks and Recreation.  Your Committee received testimony in opposition to this measure from the Outdoor Circle.  Your Committee received comments on this measure from the Airport Concessionaires Committee.

 

     Your Committee finds that contracts for naming rights may provide a much needed revenue stream for certain public facilities.  Revenue from such agreements comes at little or no cost to the State and can spark revitalization for underfunded facilities or supply funds for new projects.  Some testimony raised concerns about the breadth of the exemption from the established bidding process for concessions and the manner in which names would be displayed on state or county buildings.

 

     Your Committee has amended this measure by:

 

     (1)  Specifying that only the rights to place one or more names on a state or county building are exempt from the sealed bid process and fifteen year limitation on concession contracts; and

 

     (2)  Adding language to specify that any names placed on a state or county building, pursuant to a contract exempt from concession bidding requirements, must be in accordance with applicable county sign ordinances.

 

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 318, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 318, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Government Operations,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair