STAND. COM. REP. NO.  1087-16

Honolulu, Hawaii

                , 2016

RE:   S.B. No. 3101

      S.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred S.B. No. 3101, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC-PRIVATE PARTNERSHIPS,"

begs leave to report as follows:

The purpose of this measure is to begin the process of establishing creative mechanisms to address spending on public services and the construction, repair, and maintenance of public facilities.  Specifically, this measure requires the Department of Business, Economic Development and Tourism to study the feasibility of establishing a public-private partnership resource agency within the Department of Business, Economic Development and Tourism for all state departments, divisions, and agencies to use.

The Chamber of Commerce Hawaii and Building Industry Association of Hawaii testified in support of this measure.  The Department of Business, Economic Development and Tourism testified in support of the intent of this measure.

     In general, public-private partnerships, which are widely used throughout the country, bring enhanced efficiencies to funding, faster and less expensive project implementation, economic development and investment opportunities, and access to private sector expertise. While public-private partnerships are encouraged as a means to long-term economic growth, the State lacks a comprehensive process for all agencies to engage in public-private partnerships.  Your Committee finds that establishing a public-private partnership resource agency within the Department of Business, Economic Development and Tourism for all state departments, divisions, and agencies to utilize will address this situation.

     Should your Committee on Finance deliberate on this measure further, your Committee on Economic Development & Business respectfully requests that it consider appropriating $150,000 for the Department of Business, Economic Development and Tourism to conduct the feasibility study.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3101, S.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

DEREK S.K. KAWAKAMI, Chair