STAND. COM. REP. NO.955

Honolulu, Hawaii

, 2001

RE: S.B. No. 755

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 755, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HARBORS,"

begs leave to report as follows:

The purpose of this measure is to allow capital advancement contracts with private developers for public improvements for small boat and commercial harbor facilities.

Private development can be less costly than publicly-built developments, and can also be more likely to result in completion of the projects in a timely manner. This bill permits the Board of Land and Natural Resources and the Department of Transportation, respectively, to enter into a capital advancement contract with a private party for any public improvement to a small boat harbor or a state or commercial harbor if a finding is made that:

(1) Private development is likely to be less costly than any other type of contract;

(2) Private development would be done in a significantly more timely fashion; or

(3) Public financing is not available on a timely basis.

The contracts may be executed without legislative approval if the contract value is $2,000,000 or less, but must have legislative approval if the amount is greater than $2,000,000 and up to $5,000,000.

Your Committee finds that private development of harbor facilities on state land can save taxpayers from funding costly construction and improvements, and should be an option available to the State.

Your Committee has amended the bill by making technical, nonsubstantive changes and has also amended the bill by changing the effective date to July 18, 2088 to make the bill defective in order to promote continuing discussion.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 755, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 755, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair