STAND. COM. REP. NO. 2022

Honolulu, Hawaii

RE: H.B. No. 1582

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1582, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONS ON PUBLIC PROPERTY,"

begs leave to report as follows:

The purpose and intent of this measure is to exempt concessions that provide historical and cultural information, goods, and services to visitors and residents within the Hawaii capital historic district from the sealed bid requirements of section 102-2(a), Hawaii Revised Statutes.

Your Committee received written comments in support of this measure from the Airport Concessionaires Committee.

Your Committee finds that due to the need to provide certain services to the public, there is merit in awarding certain concession contracts through negotiation rather than to the highest bidder.

Your Committee has amended this measure by:

(1) Increasing the maximum length of concession contracts from fifteen years to twenty years;

(2) Replacing requirements that certain concessions shall be operated by nonprofit corporations in order to be exempt from the sealed bid requirements of section 102-2(a), Hawaii Revised Statutes, with a requirement that state and county agencies give preference to nonprofit corporations pursuant to rules that shall first be adopted by the respective agency;

(3) Providing that a county director of parks and recreation shall designate which county zoos, botanic gardens, or other county parks are environmentally, culturally, historically, or operationally unique for the purpose of determining whether a concession at the zoo, botanic garden, or other park is exempt from the sealed bid requirements of section 102-2(a), Hawaii Revised Statutes;

(4) Providing that the amendments made to section 102–2(b), Hawaii Revised Statutes, under this measure shall not be repealed when that section is repealed and reenacted on June 30, 2021, pursuant to section 4, Act 141, Session Laws of Hawaii 2014; and

(5) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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. 1582, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1582, H.D. 1, 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