STAND. COM. REP. NO. 2455

Honolulu, Hawaii

RE:    S.B. No. 3094

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Public Safety, Intergovernmental and Military Affairs, to which was referred S.B. No. 3094 entitled:

"A BILL FOR AN ACT RELATING TO COUNTIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow each county to impose and enforce liens upon premises served for unpaid water or sewer charges in excess of a certain amount after an opportunity to be heard under chapter 91, Hawaii Revised Statutes.

     Your Committee received testimony in support of this measure from the Department of Environmental Management, County of Hawaii; Water Board, County of Hawaii; Department of Water Supply, County of Hawaii; and the Department of Water, County of Kauai.  Your Committee received testimony in opposition to this measure from the Department of Environmental Services of the City and County of Honolulu.  Your Committee received comments on this measure from the Board of Water Supply.

     Your Committee finds that counties must go through a lengthy process to collect unpaid water and sewer bills.  The current process requires letters, payment plans, phone calls, and a court action.  In many cases, the value of the time and resources required to collect on a past due account exceeds the amount actually owed.

     Your Committee further finds that the existing authorization of each county to take over the State existing waterworks system may burden ratepayers and counties with the additional costs to maintain, improve, enlarge, and develop a state water system.

     Accordingly, your Committee has amended this measure by:

     (1)  Deleting the dollar threshold of unpaid water or sewer charges that had to be exceeded before a county could impose and enforce liens upon premises served for the unpaid water or sewer charges; and

     (2)  Repealing the authority of each county to take over from the State existing waterworks systems and sewer systems and to enlarge, develop, and improve the same.

     As affirmed by the record of votes of the members of your Committee on Public Safety, Intergovernmental and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3094, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3094, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

WILL ESPERO, Chair