STAND. COM. REP. NO. 2250

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2756

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committees on Commerce and Consumer Protection and Transportation, International and Intergovernmental Affairs, to which was referred S.B. No. 2756 entitled:

 

"A BILL FOR AN ACT RELATING TO COST SHARING IN THE RELOCATION AND UNDERGROUNDING OF UTILITY FACILITIES,"

 

beg leave to report as follows:

 

     The purpose of this measure is to clarify the cost-sharing requirements for public utilities and other entities that occupy state or county rights-of-way for relocating facilities due to highway development or undergrounding of facilities. 

 

     Your Committees received testimony in support of this measure from the Department of Transportation.  Testimony in opposition to this measure was received from the County of Maui Department of Environmental Management, Kauai Island Utility Cooperative, Hawaiian Telcom, Hawaiian Electric Company, Inc., and The Gas Company.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees find that this measure addresses the long-standing and persistent problems of a lack of clarity in standards and inconsistent interpretation of the law regarding cost sharing for construction and maintenance work along public highway rights-of-way involving multiple public and private interests.  Your Committees find that this measure is necessary because current policy has resulted in inconsistent application of the law.  Finally, your Committees note the almost universal opposition to this measure from both public and private stakeholders.  Because of these objections, your Committees have amended this measure with language agreed upon by the interested stakeholders. 

 

     Your Committees have amended this measure by:

 

     (1)  Adding exceptions to certain requirements for telecommunications carrier utility owners;

 

     (2)  Clarifying that utilities and public highway agencies shall each pay their full cost share thirty days prior to construction;

 

     (3)  Specifying that for projects that exceed an amount agreed upon by all parties, cost share shall be paid in monthly installments instead of in a single upfront payment;

 

     (4)  Specifying that cost share shall be determined by the actual cost of the project and shall be mutually agreed upon by all parties;

 

     (5)  Specifying allocation of federal funding to offset the cost share of each party;

 

     (6)  Making technical, nonsubstantive amendments for the purposes of clarity and accuracy; and

 

     (7)  Changing it effective date to July 1, 2050 in order to encourage further discussion. 

 

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Transportation, International and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2756, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2756, S.D. 1, and be referred to the Committee on Ways and Means.

 


Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Transportation, International and Intergovernmental Affairs,

 

____________________________

J. KALANI ENGLISH, Chair

 

____________________________

ROSALYN H. BAKER, Chair