STAND. COM. REP. NO. 2906

Honolulu, Hawaii

RE: S.B. No. 2531

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2531 entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST WITH SPRINKLER RETROFITS,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist in the retrofitting of low- and moderate-income apartment complexes to include sprinkler systems.

Your Committee received written comments in support of this measure from the State Fire Council; County of Maui Department of Fire and Public Safety; and OCC Legislative Priorities Committee, Democratic Party of Hawaii.

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

Your Committee finds that the July 14, 2017, fire at the Marco Polo condominium building demonstrates that certain older apartment complexes need to be retrofitted with sprinkler systems. Your Committee further finds that the issuance of special purpose revenue bonds to assist in the retrofitting of low- and moderate-income apartment complexes to include sprinkler systems is in the public interest.

Your Committee has amended this measure by:

(1) Clarifying that the retrofit program is to be state-wide; and

(2) Changing the effective date to July 1, 2050, 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 S.B. No. 2531, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2531, S.D. 1.

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

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DONOVAN M. DELA CRUZ, Chair