STAND. COM. REP. NO. 2344

Honolulu, Hawaii

RE: S.B. No. 3334

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Government Operations, to which was referred S.B. No. 3334 entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT OPERATIONS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Add the Director of Business, Economic Development, and Tourism (DBEDT) as an ex officio voting member to the Board of Directors of the:

(A) Hawaii Tourism Authority;

(B) Stadium Authority; and

(C) School Facilities Authority;

(2) Transfer the Stadium Authority from the Department of Accounting and General Services (DAGS) to DBEDT, which includes:

(A) Designating the President of the University of Hawaii and the Superintendent of Education as voting members of the Stadium Authority;

(B) Allowing the designees of the President of the University of Hawaii and the Superintendent of Education to serve on the Board of Directors of the Stadium Authority;

(C) Repealing the Stadium Development Special Fund's exemption from the pro rata share of the departmental administrative assessment fee;

(D) Increasing the amount in general obligation bonds that may be issued for the Stadium Development District; and

(E) Designating DBEDT as the expending authority for capital improvement projects in the Stadium Development District; and

(3) Transfer the School Facilities Authority from the Department of Education to DBEDT.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Accounting and General Services; and Land Use Research Foundation of Hawaii. Your Committees received testimony in opposition of this measure from one individual. Your Committees received comments on this measure from the Department of Education, Hawai‘i Tourism Authority, and Stadium Authority.

Your Committees find that attached enterprise agencies with land development functions are currently scattered across the State executive branch. This measure would aggregate expertise regarding land development and other related resources under DBEDT. Your Committees recognize the concerns raised by the Stadium Authority in its testimony. First, making the President of the University of Hawaii and the Superintendent of Education voting members of the Stadium Authority would increase the perceived or real conflicts of interest as the Stadium Authority executes its responsibilities as there are no other regular tenants of the Stadium Development District who are also members of the Stadium Authority. Second, repealing the Stadium Development Special Fund's exemption from the pro rata share of the departmental administrative assessment fee would increase the need for the Stadium Authority to seek additional state funding as it works to deliver and operate the New Aloha Stadium Entertainment District. And lastly, designating DBEDT as the expending authority for capital improvement projects in the Stadium Development District may cause confusion with appropriated funds that were delegated to and encumbered by DAGS.

Accordingly, your Committees have amended this measure by:

(1) Restoring:

(A) The President of the University of Hawaii and the Superintendent of Education as ex officio nonvoting members of the Stadium Authority;

(B) The Stadium Development Special Fund's exemption from the pro rata share of the departmental administrative assessment fee; and

(C) The Stadium Authority as the expending authority for capital improvement projects in the Stadium Development District;

(2) Clarifying that the designees of the President of the University of Hawaii and the Superintendent of Education may serve as ex officio nonvoting members of the Stadium Authority; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3334, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3334, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Government Operations,

________________________________ SHARON MORIWAKI, Chair

________________________________ GLENN WAKAI, Chair