STAND. COM. REP. NO. 3047

Honolulu, Hawaii

RE:    H.B. No. 3279

       H.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Economic Development and Taxation, to which was referred H.B. No. 3279, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII UNITED OKINAWA ASSOCIATION,"

begs leave to report as follows:

     The purpose of this measure is to ensure the continuation of the capital improvement project appropriation for the Hawaii United Okinawa Association, Oahu, by:

     (1)  Declaring that a grant to the Hawaii United Okinawa Association is for a public purpose, is in the public interest, and is for the public health, safety, and general welfare of the State;

     (2)  Clarifying that the appropriation is for land acquisition related to the expansion of the Hawaii Okinawa Center in Waipio Gentry; and

     (3)  Adding a proviso that the general obligation bond fund appropriation for the Hawaii United Okinawa Association, Oahu, Item No. 16.03, shall be administered by the State Foundation on Culture and the Arts.

     Testimony in support of this measure was received from the Hawaii United Okinawa Association (Association) and Chinen & Arinaga Financial Groups, Inc.

     Your Committee finds that this appropriation, pursuant to Act 178, Session Laws of Hawaii 2005, as amended by Act 160, Session Laws of Hawaii 2006, will lapse as of June 30, 2008.  Your Committee has heard that the Association was not notified until the end of the 2007 calendar year that in order to retain the appropriation, amendments were necessary to state a public purpose and to designate the State Foundation on Culture and the Arts as the administering agency.

     Your Committee is supportive of the services provided by the Association to the people of Hawaii, and believes the Administration could have been much more expeditious in working with the Association to clarify the appropriation.

     Your Committee defers to the Committee on Ways and Means as to whether a more appropriate solution might be to extend the term of the appropriation.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3279, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,

____________________________

CAROL FUKUNAGA, Chair