STAND. COM. REP. NO.  787-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2302

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2302, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CAPITAL IMPROVEMENT PROJECTS,"

begs leave to report as follows:

The purpose of this measure is to:

     (1)  Address economic revitalization by temporarily exempting from the state and county civil service persons hired or contracted to perform specified work relating to vacant public housing units or capital improvement projects; and

     (2)  Improve public housing inventory by appropriating funds from general obligation bonds to renovate public housing units that are uninhabitable.

The Hawaii Public Housing Authority of the Department of Human Services and Catholic Charities Hawaii supported this measure.  The Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO opposed this measure.

     Your Committee requests that updated information be collected on the number of public housing units that are in poor condition, and the estimated cost to repair those units.  The Hawaii Public Housing Authority testified that a Physical Needs Assessment in 2009 reported a capital repair backlog agency-wide of more than $350,000,000.  The Hawaii Public Housing Authority estimates that the current backlog is $200,000,000.

     Your Committee has amended this measure by:

     (1)  Appropriating an unspecified dollar amount, instead of $5,000,000, out of general obligation bonds to the Hawaii Public Housing Authority for renovating uninhabitable public housing units;

     (2)  Changing its effective date to July 1, 2030, to promote further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2302, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2302, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair