STAND. COM. REP. NO. 3594

Honolulu, Hawaii

RE:    H.B. No. 2029

       H.D. 1

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2029, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WATER INFRASTRUCTURE LOANS,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a water infrastructure loan program to enable private entities to purchase or install water infrastructure equipment for water distribution systems.

     This measure also appropriates an unspecified amount to the Hawaii water infrastructure special fund.

     Your Committee received written comments in support of this measure from the Department of Agriculture, Department of Land and Natural Resources, Hawaii Farm Bureau, and Land Use Research Foundation of Hawaii.

     Your Committee received written comments on this measure from the Department of Budget and Finance, State Procurement Office, and Hawaii Fresh Water Initiative.

     Your Committee finds that the maintenance and upgrading of water infrastructure is extremely important to the State and that the loan program established under this measure will provide a means of financing for the needed repair and maintenance of several water distribution systems.

     Your Committee has amended this measure by:

(1)  Changing the title of chapter 155, Hawaii Revised Statutes, from "Agricultural Loan" to "Agricultural and Water Infrastructure Loans;"

(2)  Specifying that contracts for the administration of the loan program are subject to, rather than exempt from, the state procurement code;

(3)  Adding an appropriation for the Department of Agriculture to implement the loan program; and

(4)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     Your Committee notes that it has requested the Department of Agriculture to recommend an appropriation amount necessary to implement the water infrastructure loan program.

     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 H.B. No. 2029, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2029, H.D. 1, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair