CONFERENCE COMMITTEE REP. NO. 58-14

Honolulu, Hawaii

                 , 2014

RE:    S.B. No. 2410

       S.D. 1

       H.D. 1

       C.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam and Sir:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2410, S.D. 1, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to require each agency that submits a capital improvement project proposal to furnish the Department of Budget and Finance with an estimate of the operational costs for the proposed capital improvement project and all documents that support the estimate of operational costs.

     The measure also requires the Department of Budget and Finance to report to the Governor an estimate of the operational costs for each proposed capital improvement project.

     Your Committee on Conference finds that agencies that submit a proposal for a capital improvement project are currently not required to include an estimate of operational costs relating to the maintenance and continued operation of a facility project.  Your Committee on Conference also finds that operational costs are often significant and can potentially be greater than the cost of development and construction.  Your Committee on Conference believes that by requiring agencies to submit an estimate of operational costs for proposed capital improvement projects, this measure will enable the State to make fiscally sound decisions and better prioritize spending on capital improvement projects.

     Upon further consideration, your Committee on Conference has amended this measure by:

     (1)  Changing the effective date from July 1, 2030, to upon approval; and

     (2)  Making a technical nonsubstantive change for the purposes of clarity and style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2410, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2410, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ KYLE T. YAMASHITA, Chair	____________________________ DAVID Y. IGE, Chair
	____________________________ MICHELLE N. KIDANI, Co-Chair