STAND. COM. REP. NO. 809

Honolulu, Hawaii

RE:    S.B. No. 719

       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 Ways and Means, to which was referred S.B. No. 719 entitled:

"A BILL FOR AN ACT RELATING TO DEFERRED MAINTENANCE,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a strategy to adequately maintain the State's buildings, facilities, and other improvements.

     Specifically, the measure addresses the State's deferred maintenance backlog by:

(1)  Requiring the Governor to:

(A)  Prepare a deferred maintenance plan to gradually eliminate the deferred maintenance costs of state-owned buildings, facilities, and other improvements; and

(B)  Submit an initial plan to the Legislature for the fiscal biennium 2019-2021 and prepare annual updates thereafter; and

(2)  Imposing the same requirements on the Chief Justice for buildings, facilities, and other improvements owned by the Judiciary.

     Your Committee received comments on this measure from the Department of Accounting and General Services and the Department of Budget and Finance.

     Your Committee finds that the State's estimated deferred maintenance costs total $3.1 billion, based on each department's estimated deferred maintenance costs for facilities statewide, as itemized in appendix 5 of the Multi-year Program and Financial Plan.  Given this significant backlog, a deferred maintenance plan is essential to ensure the backlog is addressed in a timely, cost-effective, and transparent manner.

     Your Committee has amended this measure by:

(1)  Changing the appropriation to the Office of the Governor from $100,000 to an unspecified sum;

(2)  Changing the appropriation to the Judiciary from $50,000 to an unspecified sum; and

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion.

     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 S.B. No. 719, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 719, S.D. 1.

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

________________________________

JILL N. TOKUDA, Chair