STAND. COM. REP. NO. 2157

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2300
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.B. No. 2300 entitled: 

     "A BILL FOR AN ACT RELATING TO HARBORS,"

begs leave to report as follows:

     The purpose of this measure is to allow the Department of
Transportation to enter into cost-containment contracts with
private developers for public improvements that cost up to
$2,000,000 without legislative approval and up to $5,000,000 with
legislative approval.

     Testimony was received in favor of this measure from the
Department of Transportation, Department of Land and Natural
Resources, Hawaii State Association of Counties, Maritime
Committee of the Chamber of Commerce, Liferaft & Marine Safety
Equipment, Inc., American Hawaii Cruises, Kaahumanu Center, Kona-
Kohala Chamber of Commerce, Big Island Business Council, Maui
Hotel Association, Hawaii Island Economic Development Board, VIP
Foodservice, CSX Lines, and Atlantis Adventures.

     Your Committee finds that this measure would attract the
private capital necessary for infrastructure improvements to the
harbors.

     Your Committee has amended the measure by providing that the
Department of Land and Natural Resources may also enter into
cost-containment contracts.  Your Committee has also amended the
measure by clarifying subsection (d) to reflect that a contract

 
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                                   STAND. COM. REP. NO. 2157
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with a value between $2,000,000 and $5,000,000 requires
legislative approval.
            
     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 2300, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 2300, S.D. 1, and be referred to the Committee
on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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