STAND

STAND. COM. REP. 176

Honolulu, Hawaii

, 2003

RE: H.B. No. 1577

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Economic Development and Business Concerns, to which was referred H.B. No. 1577 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

beg leave to report as follows:

The purpose of this bill is improve the ability of various agencies that are currently administratively attached to the Department of Business, Economic Development, and Tourism (DBEDT), to efficiently and effectively perform their statutory mandates by:

(1) Transferring the Housing and Community Development Corporation of Hawaii's (HCDCH):

(A) Housing and homeless assistance functions to the Department of Human Services (DHS); and

(B) Private housing financing functions to the counties;

(2) Placing HCDCH with DHS for administrative purposes;

(3) Repealing chapter 206J, Aloha Tower Development Corporation, and transferring its functions to the Hawaii Community Development Authority (HCDA), and establishing a new Aloha Tower development district under the jurisdiction of HCDA; and

(4) Repealing chapter 206M, High Technology Development Corporation (HTDC), and transferring its functions to the Hawaii Strategic Development Corporation.

This bill also establishes a temporary advisory committee to ensure a smooth and effective transfer of functions and personnel by drafting proposed legislation to implement the consolidation for introduction in the Regular Session of 2004.

HCDA and DHS submitted testimony in support of specific sections of the bill. DBEDT and HTDC provided testimony in support of the intent of the bill. HCDCH and the County of Hawaii Office of Housing and Community Development submitted testimony in opposition to the bill.

Your Committees have amended this measure by:

(1) Removing the provisions of Part I of the bill and replacing them with similar provisions from H.B. No. 1133;

(2) Changing the effective date of the bill to July 1, 2020, to allow further discussion; and

(3) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Economic Development and Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1577, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1577, H.D. 1, and be referred to the Committee on Labor and Public Employment.

Respectfully submitted on behalf of the members of the Committees on Human Services and Housing and Economic Development and Business Concerns,

____________________________ BRIAN SCHATZ, Chair		____________________________ MICHAEL PUAMAMO KAHIKINA, Chair