STAND. COM. REP. NO. 2199

Honolulu, Hawaii

RE:    S.B. No. 2942

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Transportation, International and Intergovernmental Affairs, to which was referred S.B. No. 2942 entitled:

"A BILL FOR AN ACT RELATING TO THE ALOHA TOWER DEVELOPMENT CORPORATION,"

beg leave to report as follows:

     The purpose of this measure is to abolish the Aloha Tower Development Corporation and transfer its functions to other state agencies. 

     Specifically, this measure:

     (1)  Transfers the Aloha Tower Development Corporation to the Hawaii Community Development Authority;

     (2)  Transfers the Harbors Modernization Group to the Department of Transportation, Harbors Division;

     (3)  Places the Commercial Harbors Modernization Plan under the Harbors Modernization Group;

     (4)  Provides for the appointment of new Harbors Modernization Group members, an executive director, and staff; and

     (5)  Makes an appropriation.

     Testimony in support was submitted by one organization.  Four state agencies and one organization submitted comments.  Testimony in opposition was submitted by three organizations and one individual.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees find that with the economic downturn affecting the state budget, a comprehensive reexamination of the structure of state government is necessary to ensure that all available avenues have been explored to accomplish more with fewer resources.  The projected deficit through June 2011 is $1.2 billion, the equivalent of approximately $1,200 for every man, woman, and child in the State.  Your Committees believe this measure can effectively transfer the functions of the Aloha Tower Development Corporation to another agency without unnecessarily delaying any of the needed improvements to our State's harbors.

     Your Committees have amended this measure by:

     (1)  Removing the provision authorizing the hiring of an executive director and staff;

     (2)  Placing the Harbors Modernization Group in the Department of Transportation, under the Director rather than within the Harbors Division;

     (3)  Removing the provision for the Director of Transportation to serve on the Hawaii Community Development Authority to represent the Aloha Tower complex, because the Director presently serves as an ex officio, voting member of the Authority;

     (4)  Changing the effective date to July 1, 2050 for the purposes of further discussion; and

     (5)  Making technical, nonsubstantive changes for the purpose of clarity.

     As affirmed by the records of votes of the members of your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Transportation, International and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2942, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2942, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water, Land, Agriculture, and Hawaiian Affairs and Transportation, International and Intergovernmental Affairs,

____________________________ J. KALANI ENGLISH, Chair

____________________________ CLAYTON HEE, Chair