2012-0830 SB2012 SD1 SMA

PART I

SECTION 1. The legislature finds that the State of Hawaii is still suffering from the global economic recession. While some Hawaii businesses are showing modest signs of recovery, the construction industry, including construction workers, support staff, and construction-support businesses, is still suffering.

The legislature further finds that Hawaii is experiencing the lowest interest rates on record and that there were significant savings from the State's most recent bond authorization and issuance. In completing the bond transaction, the State:

(1) Reduced debt service by saving $59,000,000 on refunded outstanding debt;

(2) Kept debt service for fiscal 2012-2013 at legislatively appropriated levels;

(3) Restructured outstanding debt;

(4) Normalized the State's debt service profile;

(5) Built excess debt capacity from 2014 to 2019;

(6) Improved the State's financial position; and

(7) Garnered a positive credit rating.

The primary economic objective of the legislature this session is to immediately stimulate direct and indirect job creation to maintain and create local construction jobs for all stages of construction, including employment for painters, roofers, electricians, carpenters, architects, engineers, and other consultants to generate more personal income growth. The department of business, economic development, and tourism estimates that the last advancement of $1,800,000,000 in capital improvement projects by the State resulted in the creation of 12.9 direct and indirect jobs created for every $1,000,000 invested.

In contemplating capital improvement projects, the legislature finds that a main focus should include repair and maintenance projects as well as those projects that address health and safety concerns. Completion of those projects will ensure the existence of well-maintained state facilities and infrastructure, which are essential to maintaining a positive business climate and strong economic foundation. Funding would be provided statewide and include efforts to eliminate current repair and maintenance backlogs.

The estimated backlog of repair and maintenance or capital renewal and deferred maintenance projects for the department of education, Hawaii state library system, University of Hawaii system, University of Hawaii's athletic facilities, department of accounting and general services, department of agriculture, department of defense, department of health, Hawaii health systems corporation, department of human services, department of land and natural resources, department of public safety, and judiciary is well over $1,000,000,000.

Another priority of the legislature is to develop sustainable and renewable energy resources, such as photovoltaic technology, as well as initiatives to improve upon efficient energy consumption. Investing in energy and information technology initiatives throughout schools, hospitals, and office buildings, would have significant impact and ultimately lead to cost savings, alleviating the drain on general funds, and a reduction of the State's carbon footprint.

The legislature also realizes that the procurement process is lengthy and complicated, which adds considerable time to completing capital improvements and repairs and maintenance in the State's facilities and infrastructure. This Act requires procurements for goods, services, or construction for the repair and maintenance or capital renewal and deferred maintenance projects authorized by this Act that are less than $1,000,000 to be made pursuant to section 103D-305, Hawaii Revised Statutes.

The purpose of this Act is to issue $500,000,000 in general obligation bonds to fund the repair and maintenance or capital renewal and deferred maintenance projects of various departments, the University of Hawaii system, the Hawaii health systems corporation, and the judiciary and to streamline the procurement process.

PART II

SECTION 2. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects and address infrastructure needs, such as science and technology, electricity, and other utility infrastructure improvements, within the public school systems. In carrying out the purpose of this part, the department of education shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of education's capital improvement projects, which include repair and maintenance projects and infrastructure needs, such as science and technology, electricity, and other utility infrastructure improvements, within the public school systems; provided that the department of education may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART III

SECTION 4. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects in the Hawaii state library system. In carrying out the purpose of this part, the Hawaii state library system shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the Hawaii state library system's repair and maintenance projects; provided that the department of education may use up to ten per cent of the sum appropriated for projects of the Hawaii state library system that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART IV

SECTION 6. The purpose of this part is to appropriate $ to reduce the backlog of capital renewal and deferred maintenance projects at the University of Hawaii at Manoa and the University of Hawaii at Hilo. In carrying out the purpose of this part, the University of Hawaii shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 7. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the University of Hawaii's capital renewal and deferred maintenance projects at the University of Hawaii at Manoa and the University of Hawaii at Hilo; provided that the University of Hawaii may use up to ten per cent of the sum appropriated for projects at the University of Hawaii at Manoa and the University of Hawaii at Hilo that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART V

SECTION 8. The purpose of this part is to appropriate $ to reduce the backlog of capital renewal and deferred maintenance projects within the University of Hawaii community college system. In carrying out the purpose of this part, the University of Hawaii shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 9. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the University of Hawaii's capital renewal and deferred maintenance projects within the University of Hawaii community college system; provided that the University of Hawaii may use up to ten per cent of the sum appropriated for projects within the University of Hawaii community college system that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART VI

SECTION 10. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects within the University of Hawaii system's athletic facilities. In carrying out the purpose of this part, the University of Hawaii shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 11. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the University of Hawaii's repair and maintenance projects for its athletic facilities; provided that the University of Hawaii may use up to ten per cent of the sum appropriated for projects at its athletic facilities that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART VII

SECTION 12. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of accounting and general services. In carrying out the purpose of this part, the department of accounting and general services shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 13. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of accounting and general services' repair and maintenance projects; provided that the department of accounting and general services may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this part.

PART VIII

SECTION 14. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of agriculture. In carrying out the purpose of this part, the department of agriculture shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 15. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of agriculture's repair and maintenance projects; provided that the department of agriculture may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of agriculture for the purposes of this part.

PART IX

SECTION 16. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of defense. In carrying out the purpose of this part, the department of defense shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 17. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of defense's repair and maintenance projects; provided that the department of defense may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of defense for the purposes of this part.

PART X

SECTION 18. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of health. In carrying out the purpose of this part, the department of health shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 19. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of health's repair and maintenance projects; provided that the department of health may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of health for the purposes of this part.

PART XI

SECTION 20. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the Hawaii health systems corporation. In carrying out the purpose of this part, the Hawaii health systems corporation shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 21. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the Hawaii health systems corporation's repair and maintenance projects; provided that the Hawaii healthy systems corporation may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this part.

PART XII

SECTION 22. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of human services. In carrying out the purpose of this part, the department of human services shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 23. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of human services' repair and maintenance projects; provided that the department of human services may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of human services for the purposes of this part.

PART XIII

SECTION 24. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of land and natural resources. In carrying out the purpose of this part, the department of land and natural resources shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 25. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the department of land and natural resources' repair and maintenance projects; provided that the department of land and natural resources may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this part.

PART XIV

SECTION 26. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the department of public safety. In carrying out the purpose of this part, the department of public safety shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 27. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the purpose of funding the department of public safety's repair and maintenance projects; provided that the department of public safety may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the department of public safety for the purposes of this part.

PART XV

SECTION 28. The purpose of this part is to appropriate $ to reduce the backlog of repair and maintenance projects of the judiciary. In carrying out the purpose of this part, the judiciary shall, when possible, use energy-efficient materials, and sustainable and renewable energy strategies to reduce energy consumption.

SECTION 29. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary, and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2011-2012 for the planning, design, construction, and equipment necessary for the judiciary's repair and maintenance projects; provided that the judiciary may use up to ten per cent of the sum appropriated for projects that affect the health, safety, and welfare of the public.

The sum appropriated shall be expended by the judiciary for the purposes of this part.

PART XVI

SECTION 30. The legislature finds that the approval process for procurement can take longer than anticipated. A streamlined procurement approval process would assist in getting projects implemented to help stimulate growth of the workforce and the State's economy. The purpose of this part is to provide a temporary expedited process for the capital improvement projects authorized under this Act, for contracts for goods, services, or construction that are less than $1,000,000.

SECTION 31. Notwithstanding sections 103D‑305 and 103D‑701, Hawaii Revised Statutes, to the contrary, procurements for construction, goods, or services for the capital improvement projects authorized by this Act shall be made pursuant to section 103D‑305, Hawaii Revised Statutes, including the performance and payment bond requirements thereunder; provided that:

(1) Each procurement for construction shall be less than $1,000,000;

(2) Each procurement for goods or services shall be less than $1,000,000;

(3) Procurements of less than $1,000,000 shall be conducted through an electronic system; and

(4) Section 103D‑701, Hawaii Revised Statutes, shall not apply to procurements of less than $1,000,000.

SECTION 32. Capital improvement projects authorized pursuant to this Act that are less than $1,000,000 shall be exempt from all county permit, license, and certificate requirements; provided that the capital improvement projects shall meet all federal, state, and other applicable county code requirements.

PART XVII

SECTION 33. The appropriation made for the capital improvement projects authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2014, shall lapse as of that date. SECTION 34. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	2012
TWENTY-SIXTH LEGISLATURE, 2012		S.D. 1
STATE OF HAWAII		Proposed