STAND. COM. REP. NO. 2173

Honolulu, Hawaii

RE: S.B. No. 2777

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 2777 entitled:

"A BILL FOR AN ACT RELATING TO THE NATIONAL GUARD,"

begs leave to report as follows:

The purpose and intent of this measure is to allow the Department of Defense to recoup operating costs when the department allows for temporary facility use to the public.

Your Committee did not receive any testimony on this measure.

Your Committee finds that it is important that the Department of Defense serve and be an integral part of the community. Your Committee further finds that the leasing out of Department of Defense facilities, in accordance with Hawaii Revised Statutes and Department of Defense requirements, on a non-interference basis, for temporary public use and rental by organizations such as civic and veterans groups, and non-profit entities within the community provides a valuable service to the public. However, the Department of Defense is currently losing money when it rents out its facilities because, under existing statutes, all monies received from these rentals are to be deposited into the general fund of the State, with required amounts returned to the Office of Hawaiian Affairs. This results in the Department of Defense being forced to utilize operating funds to cover the costs of utilities, supplies, and personnel for the temporary public use of its facilities. Accordingly, this measure clarifies that the Department of Defense may retain revenues collected to cover the cost of utilities, supplies, personnel, and wear-and-tear associated with the lending out of its facilities and that any net proceeds collected associated with the lending out of its facilities will be returned to the State's general fund, with required amounts returned to the Office of Hawaiian Affairs.

As affirmed by the record of votes of the members of your Committee on Public Safety, Intergovernmental, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2777 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Intergovernmental, and Military Affairs,

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CLARENCE K. NISHIHARA, Chair