STAND. COM. REP. NO. 1088

Honolulu, Hawaii

RE:    H.B. No. 632

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Water and Land and Commerce, Consumer Protection, and Health, to which was referred H.B. No. 632, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WATER INFRASTRUCTURE LOANS,"

beg leave to report as follows:

     The purpose and intent of this measure is to broaden the Hawaii Water Infrastructure Loan Program by:

     (1)  Amending the definition of "water infrastructure charge" to include on-bill charges for loan repayments and other charges that may be imposed on water utilities; and

     (2)  Including water utilities and water tanks in the Hawaii Water Infrastructure Loan Program.

     Your Committees received testimony in support of this measure from the Department of Agriculture, Board of Water Supply of the City and County of Honolulu, Ulupono Initiative, and Hawai‘i Farm Bureau.

     Your Committees find that water is a vital state resource, and the Water Infrastructure Loan Program provides essential funding for the maintenance and upgrading of water infrastructure systems.  Expansion of the program to include water utilities and water tanks will provide additional financing options for waterworks projects and help in keeping water rates affordable for water utility customers.  Additionally, expanding the program to include water tanks is critical for residents who live in systems dependent on surface waters or remote residential or farm systems dependent on catchment.

     Your Committees have amended this measure by:

     (1)  Removing the proposed amendments to the definition of "water infrastructure charge";

     (2)  Inserting an effective date of March 15, 2099, to encourage further discussion; and

     (3)  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 Water and Land and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 632, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 632, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water and Land and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ KARL RHOADS, Chair