HOUSE OF REPRESENTATIVES

H.B. NO.

1723

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the honolulu authority for rapid transportation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  (a)  The auditor shall conduct a comprehensive financial and management audit of the Honolulu authority for rapid transportation that shall include an examination of:

     (1)  The management and operations of the Honolulu authority for rapid transportation, including:

          (A)  The Honolulu authority for rapid transportation's financial plan and related systems of accounting;

          (B)  The efficacy of the Honolulu authority for rapid transportation's fiscal and management policies, practices, and processes associated with the plans, design, bidding, and construction of the Honolulu rail transit project;

          (C)  All contracts awarded for, and expenditures associated with, the Honolulu rail transit project, including payments to contractors, subcontractors, and consultants; and

          (D)  Expenditures by the Honolulu authority for rapid transportation for personnel costs, lease rent, and any other costs associated with its management and operations;

     (2)  Factors contributing to escalating costs associated with the Honolulu rail transit project, including:

          (A)  Inflation;

          (B)  Costs associated with project delays, including change orders, work restrictions, and bidding procedures;

          (C)  Costs associated with legal challenges to the Honolulu rail transit project, including costs of change orders or delays resulting from each legal challenge; and

          (D)  Cost containment measures and any other actions taken by the Honolulu authority for rapid transportation to mitigate increasing costs of the Honolulu rail transit project; and

     (3)  The total amount of county surcharge revenues collected pursuant to section 46-16.8, Hawaii Revised Statutes; the amount of surcharge revenues paid to the director of finance of the city and county of Honolulu; and the amount of the surcharge revenues expended by the Honolulu authority for rapid transportation.

     (b)  The audit shall be concluded no more than eighteen months after it begins; provided that the auditor shall submit a report of the auditor's findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2018.  The recommendations shall address any deficiencies identified as a result of the audit.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $         or so much thereof as may be necessary for fiscal year 2016-2017 to conduct a comprehensive financial and management audit of the Honolulu authority for rapid transportation pursuant to section 1 of this Act.

     The sum appropriated shall be expended by the auditor for the purposes of this Act.
     SECTION 3.  This Act shall take effect on July 1, 2016.

 

INTRODUCED BY:

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Report Title:

Honolulu Authority for Rapid Transportation; Audit; Appropriation

 

Description:

Requires the auditor to conduct a comprehensive financial and management audit of the Honolulu Authority for Rapid Transportation.  Appropriates funds.

 

 

 

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