STAND. COM. REP. NO. 1051

Honolulu, Hawaii

RE:    H.B. No. 627

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 627, H.D. 2, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to authorize and appropriate funds for the establishment of a permanent state public-private partnership coordinator position within the Department of Business, Economic Development, and Tourism.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; and Chamber of Commerce Hawaii.  Your Committee received testimony in opposition to this measure from one individual.

     Your Committee finds that public-private partnerships are an effective strategy for economic development.  Hawaii has started successfully implementing public-private partnerships for several industries, including tourism, film, agriculture, energy, broadband, and innovation.  Your Committee further finds that creating a permanent state public-private partnership coordinator position to manage public-private partnerships entered into by the State will help support economic development in Hawaii.

     Your Committee has also heard the concerns that one permanent position may not be sufficient to manage contracts, proposals, and negotiations related to public-private partnerships entered into by the State.  Your Committee notes that S.B. No. 1306, S.D. 1, a substantially similar measure, creates an Office of Public-Private Partnership within the Department of Business, Economic Development, and Tourism.  Your Committee concludes that language from S.B. No. 1306, S.D. 1, should be added to this measure to help establish the resources and employees necessary.

     Your Committee has amended this measure by:

     (1)  Organizing its contents into different parts and making the authorization to establish a permanent state public-private partnership coordinator position part I;

     (2)  Inserting the contents of S.B. No. 1306, S.D. 1, as part II, which:

          (A)  Establishes an Office of Public-Private Partnership within the Department of Business, Economic Development, and Tourism;

          (B)  Requires that the office create a strategic plan;

          (C)  Requires that the office create collaboration amongst state agencies to identify and implement public-private projects; and

          (D)  Requires that the office oversee and implement public-private projects;

     (3)  Adding language to part II that the Office of Public-Private Partnership shall initiate Aloha Stadium redevelopment as its initial project;

     (4)  Inserting an appropriation amount of $10,000,000 and allowing the appropriated funds to also be used for the establishment and operation of the Office of Public-Private Partnership and initiation of Aloha Stadium redevelopment; and

     (5)  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, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 627, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 627, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

GLENN WAKAI, Chair