Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 755 entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Department of Transportation to enter in contracts to obtain private financing for maintenance and repair of harbor facilities throughout the State.

Your Committee received testimony in support of this measure from the Department of Transportation, the Board of Land and Natural Resources, American Classic Voyages, Inc., the Maritime Committee of the Hawaii Chamber of Commerce, Waldron Steamship Co., Ltd., and the Ocean Tourism Coalition. The Department of Budget and Finance submitted testimony opposing the bill as written.

The facilities at many of Hawaii's harbors are in dire need of repair and maintenance. Your Committee finds that the capital advancement contracts authorized by this measure are an efficient method to enable the Department of Transportation to seek immediate financing for small projects. Although the State would be liable for the amounts financed, the requirement of legislative approval for contracts over $2,000,000 alleviates the concern that this measure may create excess public debt.

Your Committee amended this measure to give the Board of Land and Natural Resources the authority to enter into capital advancement contracts for the repair and maintenance of small boat harbors, similar to the authority given to the Department of Transportation.

Your Committee understands that critical infrastructure improvements are needed at small boat harbors under the jurisdiction of the Board of Land and Natural Resources, and your Committee believes that authorizing the Board to obtain private financing would facilitate efficient completion of those projects as well.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 755, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 755, S.D. 1, and be referred to the Committee on Ways and Means.