STAND. COM. REP. NO.  765

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 277

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 277, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MILITARY AFFAIRS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Designate a nonprofit corporation as the state liaison in matters relating to the military, and to provide oversight for the military's presence in Hawaii and the impact that defense spending has on Hawaii's economy; and

     (2)  Establish the Military Affairs Liaison Trust Fund as a separate fund of the nonprofit corporation to support the nonprofit corporation in its duties as the state liaison in matters relating to the military.

     The Department of Defense and The Chamber of Commerce of Hawaii supported this bill.  The Department of Budget and Finance provided comments.

     Your Committee has amended this bill by:

     (1)  Adding a provision that requires an audit of the Military Affairs Liaison Trust Fund;

     (2)  Ensuring the Legislature receives a copy of the audit; and

     (3)  Changing the effective date to July 1, 2030, to promote further discussion.

     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. 277, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 277, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair