STAND. COM. REP. NO. 1189

Honolulu, Hawaii

RE:    H.B. No. 1505

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 1505, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to establish the State Facility Renovation Partnership Program, under which the Department of Accounting and General Services may sell certain state office facilities to private investors who agree to renovate, improve, or construct a facility to then be leased to the State.

     Your Committee received written comments in support of this measure from Andres Albano, Jr., Senior Vice President, CB Richard Ellis, Inc.  Your Committee received written comments in opposition to this measure from one individual.  Your Committee received comments on this measure from Kalbert K. Young, Director, Department of Budget and Finance.

     Your Committee finds that the public-private partnerships authorized by this measure offer a viable alternative for the Department of Accounting and General Services to address the State's backlog of necessary repair and maintenance work, as well as to undertake new construction projects.  Under this measure, the State will retain ownership of the land underlying the projects and have an option to purchase the new or improved facility.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1505, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair