STAND. COM. REP. NO. 1515

Honolulu, Hawaii

RE:    H.B. No. 627

       H.D. 2

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 627, H.D. 2, S.D. 1, 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 encourage public-private partnerships in the State.

More specifically, this measure:

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

     (2)  Authorizes the establishment of one permanent state public-private partnership coordinator position within the Department of Business, Economic Development, and Tourism;

     (3)  Requires the office to:

          (A)  Create a strategic plan;

          (B)  Coordinate collaboration among state agencies to identify and implement public-private partnerships;

          (C)  Oversee and implement public-private partnerships;

          (D)  Analyze each state public-private partnership project; and

          (E)  Initiate Aloha Stadium redevelopment as its initial project; and

     (4)  Appropriates $10,000,000 in each of fiscal years 2017-2018 and 2018-2019 to:

          (A)  Establish and operate the Office of Public-Private Partnership and initiate Aloha Stadium redevelopment; and

          (B)  Establish and fill the state public-private partnership coordinator position.

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Stadium Authority of the Department of Accounting and General Services; and Chamber of Commerce Hawaii.

     Your Committee received written comments on this measure from the Hawaii Public Housing Authority and Hawaii Government Employees Association.

     Your Committee finds that utilizing public-private partnerships is an effective way to pursue economic development and revitalization in industries such as tourism, film production, agriculture, clean energy, broadband communications, sports, and technology innovation. 

Your Committee believes that establishing an Office of Public-Private Partnership within the Department of Business, Economic Development, and Tourism to facilitate and manage public-private partnerships will encourage and facilitate the development of those partnerships.  Your Committee also believes that establishing a permanent state public-private partnership coordinator position within that office, and initiating Aloha Stadium redevelopment through a public-private partnership, will encourage economic development and revitalization that benefits the State.

     Your Committee has amended this measure by:

     (1)  Expanding the duties of the Office of Public-Private Partnership to also include:

          (A)  Developing and analyzing plans for future public-private partnership projects;

          (B)  Assisting state departments having interests in public-private partnerships;

          (C)  Developing programs to continuously encourage public-private partnership projects to improve infrastructure and government services in the State; and

          (D)  Formulating, and assisting state agencies in formulating, specific program and project proposals to solicit public-private partnerships; and

     (2)  Changing the appropriation from $10,000,000 to an unspecified amount to facilitate further discussion on the measure.

     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. 627, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 627, H.D. 2, S.D. 2.

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

________________________________

JILL N. TOKUDA, Chair