STAND. COM. REP. NO. 2563

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2300
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2300, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HARBORS,"

begs leave to report as follows:

     The purpose of this bill is to provide specific
authorization to use cost containment contracts in the operation
of state harbors.

     Specifically, this bill allows the Departments of
Transportation and Land and Natural Resources 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.

     Your Committee agrees with the intent of this bill, and
finds that private development of harbor facilities on state
lands should be encouraged to save taxpayers the burden of
funding costly construction or improvements.  Your Committee
finds that this bill will assist in attracting the private
capital that is necessary for infrastructure improvements to the
State's harbors.

     Upon further consideration, your Committee has amended this
bill by deleting the provision that allows a cost-containment

 
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                                   STAND. COM. REP. NO. 2563
                                   Page 2


contract to be financed by legislative appropriation to reimburse
the private party.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2300, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2300, S.D.
2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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