STAND. COM. REP. NO. 2438

Honolulu, Hawaii

RE:    S.B. No. 2872

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred S.B. No. 2872 entitled:

"A BILL FOR AN ACT RELATING TO PROCUREMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow any utility owner whose facility occupies a state highway right-of-way to provide its share of costs up front to the affected state agency for encumbrance of funds in related contracts by way of an agreement to pay.

     Your Committee received testimony in support of this measure from the Department of Transportation.

     Your Committee finds that existing law does not allow for cost sharing for certain types of utility work.  This measure is intended to address a long-standing challenge for the Department of Transportation to complete projects involving all types of utility work, including undergrounding and new facilities.

     As affirmed by the record of votes of the members of your Committee on Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2872 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,

____________________________

WILL ESPERO, Chair