STAND. COM. REP. NO. 2762

Honolulu, Hawaii

RE:    S.B. No. 3066

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 3066, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC-PRIVATE FINANCE INITIATIVE,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish the Public-Private Finance Initiative as a public body corporate within the Department of Business, Economic Development and Tourism, for administrative purposes.

     More specifically, this measure establishes the initiative to enter into public-private partnership agreements to develop plans and implement projects on behalf of public agencies.

     Your Committee received written comments in support of this measure from the Department of Accounting and General Services; Department of Business, Economic Development, and Tourism; Wahiawa Community Business Association; and one individual.  Written comments in opposition to this measure were received from two individuals.  Written comments on this measure were received from the Department of Budget and Finance.

     Your Committee finds that public-private partnership agreements will enable the government to deliver infrastructure to the public and maintain it more efficiently than more traditional modes of delivery.

     Your Committee has amended this measure by:

(1)  Designating the Department of Business, Economic Development, and Tourism as the successor agency for the initiative upon the initiative's termination or dissolution;

(2)  Identifying the initiative as the public agency that is responsible for the lease payments under the public-private partnership agreements;

(3)  Clarifying that the initiative shall conduct suitability tests before issuing requests for proposals;

(4)  Exempting the initiative from chapter 103D, Hawaii Revised Statutes, relating to the public procurement code, and the lease provisions in chapter 171, Hawaii Revised Statutes;

(5)  Requiring the pilot project on state lands in Wahiawa, City and County of Honolulu, to terminate not later than October 1, 2017;

(6)  Standardizing the language in provisions relating to bidders and their proposals;

(7)  Transferring placement of the provision that authorizes the retention of an independent consultant or the creation of a staff position from the new Hawaii Revised Statutes section on projects and plans (§   -5) to the new Hawaii Revised Statutes section on the establishment of the Public-Private Finance Initiative (§   -3);

(8)  Changing the appropriation from $500,000 to an unspecified amount;

(9)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(10) Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3066, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3066, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair