STAND. COM. REP. NO. 1378

Honolulu, Hawaii

RE: H.B. No. 990

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Public Safety, Intergovernmental, and Military Affairs, to which was referred H.B. No. 990, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DEPARTMENT OF DEFENSE FACILITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to clarify that the Department of Defense may continue its community involvement by lending out its facilities to certain entities without incurring a loss to its operating budget and depositing all net proceeds collected to the general fund, with required amounts returned to the Office of Hawaiian Affairs.

Your Committee received testimony in support of this measure from the Department of Defense.

Your Committee finds that the rental monies collected from lending out the Department of Defense's facilities are intended to cover costs that directly relate to the use of those facilities. These costs include but are not limited to water, sewer, electricity, cleaning, supplies, repair and maintenance, and related staff positions to coordinate the use of and access to the rented facilities. Under existing law, all monies received from these rentals are required to be deposited into the general fund of the State and certain amounts returned to the Office of Hawaiian Affairs.

Your Committee further finds that the Department of Defense has been using its operating funds to cover the costs associated with the renting out of its facilities. This measure would allow the Department of Defense to retain and use a portion of the revenues collected from renting out its facilities, rather than use the Department's operating funds, to meet the associated costs of renting out the Department of Defense's facilities.

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 H.B. No. 990, H.D. 1, 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