STAND. COM. REP. NO. 1114

Honolulu, Hawaii

RE:    H.B. No. 441

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Economic Development and Technology, to which was referred H.B. No. 441 entitled:

"A BILL FOR AN ACT RELATING TO STATEWIDE INFRASTRUCTURE CAPACITY BUILDING CONSTRUCTION FINANCING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the infrastructure capacity construction loan revolving fund to provide loans to counties, state agencies, or private developers for infrastructure improvements; and

     (2)  Appropriate funds for the administration and implementation of the infrastructure capacity construction loan revolving fund.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Office of Planning, Department of Planning and Permitting of the City and County of Honolulu, Chamber of Commerce Hawaii, Building Industry Association of Hawaii, Land Use Research Foundation of Hawaii, and one individual.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that, despite often being taken for granted, infrastructure is one of the biggest issues that governments need to address in their public policies.  More specifically, infrastructure investment in particular areas, such as the development of roads, drainage, communications, information technology, educational institutions, ports, and hospitals, is important to economic development and the overall quality of life in the State.

     Your Committee further finds that this measure will provide opportunities to accelerate the deployment of broadband and telecommunications infrastructure across the State and promote the efficient use of government and private resources while minimizing the disruption to the public caused by this deployment.  However, your Committee also finds that while it is appropriate for the Office of Planning to be involved in the coordination of regional infrastructure improvements, the Department of Accounting and General Services is more capable of providing the necessary capacity and expertise to administer the financing mechanisms to address the complexity, scale, and range of deploying community infrastructure statewide.

     Your Committee has amended this measure by:

     (1)  Requiring the Department of Accounting and General Services to administer the infrastructure capacity construction loan revolving fund, rather than the Office of Planning; and

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

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 441, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 441, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,

________________________________

GLENN WAKAI, Chair