STAND. COM. REP. NO.  555

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1831

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 1831 entitled:

"A BILL FOR AN ACT RELATING TO MILITARY AFFAIRS,"

begs leave to report as follows:

     The purpose of this bill is to support the military in Hawaii while protecting state interests by establishing a Military Affairs Liaison Special Fund to support a nonprofit entity to:

(1)  Serve as liaison in matters relating to the military; and

(2)  Provide oversight for the military's presence in Hawaii and the impact defense spending has on Hawaii's economy.

     The State of Hawaii Department of Defense and Chamber of Commerce of Hawaii testified in support of this bill.  The Department of Budget and Finance testified in opposition to this measure.

     Hawaii's strategic global position makes it essential for the United States military to maintain a large presence in Hawaii.  This is beneficial in that it provides needed defense for the country while also providing much needed economic benefits to the state.  In fact, the military is Hawaii's second largest source of revenues - second only to tourism.  A liaison between the State and the military commands in Hawaii would allow for the expansion and fostering of Hawaii's relationship with the military and be advantageous to both parties.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2112; and

(2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1831, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1831, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

____________________________

ANGUS L.K. MCKELVEY, Chair