STAND. COM. REP. NO. ________-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2739
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Public Safety and Military Affairs, to
which was referred H.B. No. 2739 entitled: 

     "A BILL FOR AN ACT RELATING TO CORRECTIONS,"

begs leave to report as follows:

     The purpose of this bill is to make an appropriation to the
Department of Public Safety to indicate the intention and ability
of the state to proceed with the private development of a
correctional facility to reduce prison overcrowding, utilizing
public funds or private funds, or a combination of both.

     Your Committee received testimony in support of this measure
from the Department of Public Safety, the Operational Support
Services, the Hawaii Leeward Planning Conference, the Hawaii
Island Chamber of Commerce, the Hawaii Island Portugese Chamber
of Commerce, the Hawaii Island Economic Development Board, the
Chamber of Commerce of Hawaii, and the Kanoelehua Industrial Area
Association.  The United Public Workers submitted testimony in
support of the intent of this measure.  The Department of Budget
and Finance submitted neutral comments on this measure.  The
Community Alliance on Prisons and the Ilioulaokalani Coalition
testified in opposition to this measure.

     Your Committee finds that this measure provides additional
flexibility for the state should it go forward with the private
development of a new correctional facility.


 
 
 
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                                 Page 2

 
     Your Committee has amended this bill to stipulate that the
appropriation is only authorized for correctional facilities
within the state of Hawaii.  The bill has also been amended to
require compliance with chapter 103D-1007, Hawaii Revised
Statutes.  It is the intent of your Committee to ensure that the
local economy benefits and that local needs are understood if
such a development project proceeds.

     Your Committee has also made technical amendments to this
bill to replace "certificates or participation" with
"certificates of participation."

     As affirmed by the record of votes of the members of your
Committee on Public Safety and Military Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 2739, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2739, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Public Safety and
                                   Military Affairs,



                                   ______________________________
                                   NESTOR R. GARCIA, Chair