STAND. COM. REP. NO.  1211-08

 

Honolulu, Hawaii

                , 2008

 

RE:   S.B. No. 1793

      S.D. 1

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

 

Sir:

 

     Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 1793, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY,"

 

begs leave to report as follows:

 

     The purpose of this bill is to improve governance of the Natural Energy Laboratory of Hawaii Authority (NELHA) by adding to NELHA's board of directors, two members chosen from NELHA's tenants and three members of the general public, and requiring seven or more members to vote in the affirmative on issues relating to lease rents or water rates.

 

     Your Committee made available to the public on the Legislature's website a proposed H.D. 1 of this bill.  The proposed H.D. 1 replaces the substance of this bill with provisions that streamline NELHA operations by exempting NELHA from certain requirements for administrative supervision of boards and commissions.  These exemptions allow NELHA to:

 

(1)  Directly communicate with the Governor and Legislature, instead of through the Department of Business, Economic Development, and Tourism (DBEDT);

 

(2)  Make all decisions regarding employment without the approval of DBEDT and in compliance with all applicable laws; and

 

(3)  Purchase supplies, equipment, and furniture without the approval of DBEDT.

 

     The Hawaii Aquaculture Association, Keahole Point Association, and a concerned individual supported the proposed bill.  The Department of Budget and Finance opposed the proposed bill.  A concerned individual commented.

 

     Your Committee finds that NELHA is in a unique position.  It is supported by public funds and is administratively attached to DBEDT, yet its goal is to become self-sustaining as it serves its private small business tenants.  To provide reliable services to those tenants, it is imperative that NELHA has the ability to quickly procure goods and services.  However, since NELHA is publicly funded, it is accountable to the public for its expenditures and must comply with procurement and other procedures, including DBEDT oversight.  Your Committee believes that a restructuring of NELHA's board could be considered, which serves to make NELHA more accountable to the public and at the same time allows NELHA to be given greater independence.

 

     Upon consideration of these issues, your Committee has amended this bill by replacing its substance with that of the proposed H.D. 1, and adding a sunset date of July 1, 2013, to allow a reevaluation of the exemptions.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1793, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1793, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

 

 

 

 

____________________________

KYLE T. YAMASHITA, Chair