STAND. COM. REP. NO. 1403-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2433
                                     S.D. 2
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2433, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO PRISONS,"

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to provide for privatized correctional facilities in the State
by, among other things:

     (1)  Authorizing the Governor to:

          (a)  Enter into and execute contracts in the name of
               the State with any private entity to operate
               correctional facilities at sites within the State
               and selected by the Governor; and

          (b)  Negotiate with any person for the development of a
               private correctional facility capable of housing
               both minimum and medium security inmates to be
               situated on lands identified as a portion of TMK
               1-6-001-025 and 1-6-001-002;

     (2)  Enabling the Department of Public Safety (DPS) to grant
          a license to a private correctional facility determined
          by DPS;


 
 
 
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     (3)  Establishing the Citizens Oversight Committee for
          consultation during site selection and facility design;
          and

     (4)  Appropriating funds for the preparation of an
          environmental impact statement (EIS) for the
          development of a private correctional facility.

     The Chamber of Commerce of Hawaii, Government Efficiency
Teams, Inc., and Associated Builders and Contractors, Inc.
testified in support of the measure.  DPS testified in support of
the intent of the measure.  Opposing testimony was received from
E Ho'opakele and the Community Alliance on Prisons.

     Your Committee has amended this bill by deleting its
contents and inserting the substantive provisions of H.B. No.
2739, H.D. 2, which:

     (1)  Authorizes the Governor to negotiate with any person
          for the development of a private correctional facility:

          (A)  Capable of housing both minimum and medium
               security inmates;

          (B)  Offering educational and drug and alcohol
               rehabilitation and treatment programs; and

          (C)  To be situated on lands identified as a portion of
               TMS 1-6-001-025 and 1-6-001-002;

          and

     (2)  Appropriates funds for the preparation of an EIS for
          the development of a private correctional facility.

     Your Committee further amended the bill to allow funds
appropriated for the development of a new correctional facility
to be used to match any available federal funding, and to make
technical, nonsubstantive amendments for clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2433, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2433,
S.D. 2, H.D. 2.


 
 
                                 STAND. COM. REP. NO. 1403-00
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair