STAND. COM. REP. NO. 2377

Honolulu, Hawaii

, 2006

RE: S.B. No. 2546

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Labor and Business and Economic Development and Transportation and Government Operations, to which was referred S.B. No. 2546 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

beg leave to report as follows:

The purpose of this measure is to establish a task force to study the feasibility of establishing a Hawaii construction authority to develop and implement a strategic, long-range, construction development plan for the State and to streamline the construction process.

This measure also:

(1) Specifies the composition of the members of the task force;

(2) Specifies the issues and topics that the task force is tasked with reviewing;

(3) Requires the Department of Labor and Industrial Relations (DLIR), in consultation with the task force, to submit a report to the Legislature on its findings, recommendations, and draft legislation prior to the convening of the regular session of 2008; and

(4) Appropriates funds for the establishment of the task force.

Testimony in support of this measure was submitted by the Plumbers and Pipefitters Union Local 675, the Subcontractors Association of Hawaii, the Hawaii Building and Construction Trades Council, AFL-CIO, and one individual. Testimony in opposition to this measure was submitted by the Hawaii Chapter of Associated Builders and Contractors, Inc. and the Building Industry Association of Hawaii. Comments on the measure were also submitted by DLIR and one individual.

Your Committees find that the construction industry within the State is growing at a rapid rate, with reports indicating that it will continue to expand and add more jobs and money into the economy over the next several years. Your Committees further find that with this expansion comes several unanswered questions regarding the State's ability to support the industry by making necessary improvements to streamline the process for property development or through the provision of an adequate workforce. Your Committees determine that the establishment of a task force to study the feasibility of establishing a Hawaii construction authority is a necessary and prudent course of action in addressing the issues involved in the emerging construction industry within the State. The task force will be able to thoroughly review and analyze the relevant issues regarding the necessity, propriety, feasibility, and effect of creating a Hawaii construction authority. Your Committees believe that this is an important step in properly preparing the State for future growth.

Your Committees recognize that several different measures relating to the establishment of a task force or a Hawaii construction authority have been introduced this session. Your Committees determine that this measure should continue to move forward as the issues are more fully developed and addressed. Furthermore, your Committees note that they have requested DLIR to provide an estimate of the cost of establishing the task force, as this information will be important in determining how to proceed on this matter.

As affirmed by the records of votes of the members of your Committees on Labor and Business and Economic Development and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2546 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Business and Economic Development and Transportation and Government Operations,

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WILL ESPERO, Chair

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BRIAN KANNO, Chair

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LORRAINE R. INOUYE, Chair