STAND. COM. REP. NO.  430

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1505

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Water, Land, & Ocean Resources, to which was referred H.B. No. 1505 entitled:

"A BILL FOR AN ACT RELATING TO STATE FACILITIES,"

begs leave to report as follows:

     The purpose of this bill is to address the State's significant backlog of deferred facility maintenance and promote new construction projects by establishing public-private partnerships through the State Facility Renovation Partnership Program.

     CB Richard Ellis, Inc., supported this bill.  The Department of Accounting and General Services (DAGS) opposed this measure.  The Department of Budget and Finance offered comments.

     Your Committee has amended this bill by, among other things:

     (1)  Adding a purpose section;

     (2)  Adding definitions of "building lease", "ground lease", "development agreement", and "facility";

     (3)  Specifying that the State Facility Renovation Partnership Program includes all transactions, including land, improvements, or both;

     (4)  Clarifying the frequency and scope of DAGS' comprehensive review of state-owned facilities;

     (5)  Providing that the State has the option of purchasing the facility from a private investor for the remaining balance of the debt-service costs incurred by the private investor at any time and concurrently terminating the ground lease; and

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

     As affirmed by the record of votes of the members of your Committee on Water, Land, & Ocean Resources that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1505, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1505, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land, & Ocean Resources,

____________________________

JERRY L. CHANG, Chair