STAND. COM. REP. NO. 2429

Honolulu, Hawaii

RE:    S.B. No. 2542

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Government Operations and Judiciary and Labor, to which was referred S.B. No. 2542 entitled:

"A BILL FOR AN ACT RELATING TO REPAIR AND MAINTENANCE,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require each state executive agency that manages a state-owned building, facility, or other improvement to submit to the Legislature an annual report on the funds and positions deemed necessary by the agency to perform routine repair and maintenance on the state-owned building, facility, or other improvement during the fiscal year covered by the report;

     (2)  Authorize an executive budget act or supplemental budget act to provide that the unexpended or unencumbered balance of an appropriation for routine repair and maintenance for a fiscal year shall not lapse at the end of that fiscal year; and

     (3)  Require every capital improvement project for the construction of a new state-owned building, facility, or other improvement to include a recommended plan for the routine repair and maintenance of the building, facility, or other improvement prepared by the project contractor.

     Your Committees received testimony in support of this measure from the Department of Accounting and General Services; United Public Workers, AFSCME, Local 646, AFL-CIO; and two individuals.  Your Committees received comments on this measure from the Department of Budget and Finance and Department of Human Resources Development.

     Your Committees find that the deferred maintenance of state-owned buildings, facilities, and other improvements leads to more expensive capital replacement or renewal costs in the future.  Implementation of this measure will promote transparency and preserve the condition of state-owned buildings, facilities, and other improvements for public use or benefit, now and into the future.

     Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Government Operations and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2542, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2542, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Judiciary and Labor,

________________________________ GILBERT S.C. KEITH-AGARAN, Chair

________________________________ DONNA MERCADO KIM, Chair