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THE SENATE |
S.B. NO. |
1448 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HEALTH FOR CONSTRUCTION DEFECT REMEDIATION AT THE HAWAII STATE HOSPITAL.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 2.
In January 2018, the State awarded a $140,000,000 contract for a
design-build delivery construction for the Hale Hoʻola Building project located
at Hawaii state hospital. After the
project's acceptance, and a warranty period of two years, the State encountered
various issues, many stemming from latent defects due to poor design and construction. Investigations into the root causes are still
ongoing. The department of accounting
and general services has been holding the contractor accountable for these issues,
but with limited success.
A major concern is the occurrence
of water leaks in both the building's exterior and plumbing systems and mold
growth. Immediate action is necessary to
address these issues to enable Hawaii state hospital to deliver quality care to
patients who live in the building year around.
Additionally, the department of health has received
grievances from staff regarding violations of article 21 of their contract,
covering safety and health, and the public employees' collective bargaining
agreement, citing an unsafe working environment.
Due
to insufficient funds to fix these issues, the department of health is
requesting an emergency appropriation to address mold growth and leaks in the
Hale Hoʻola
Building.
Accordingly, the purpose of this Act is to
make an emergency appropriation to the department of health for construction
defect remediation at the Hawaii state hospital.
SECTION 3.
There is appropriated out of the general revenues of the State of Hawaii
the sum of $10,660,000 or so much thereof as may be necessary for fiscal year
2024-2025 to fund construction defect remediation, including the payment of
legal fees and costs of special deputy attorneys general, at the Hawaii state
hospital; provided that any civil fines accrued from litigious suits, damages,
and settlements awarded shall be deposited into the general fund.
The
sum appropriated shall be expended by the department of health for the purposes
of this Act.
SECTION 4.
The appropriation made for the construction defect remediation
authorized by this Act shall not lapse at the end of the fiscal biennium for
which the appropriation is made; provided that all moneys from the appropriation
unencumbered as of June 30, 2026, shall lapse as of that date.
SECTION 5.
In accordance with section 9 of article VII of the Constitution of the
State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the
legislature has determined that at the beginning of the regular session of
2025, the general fund expenditure ceiling for fiscal year 2024-2025 was
exceeded by $8,551,795, or one per cent.
The appropriations contained in Act 1, Session Laws of Hawaii 2025,
caused the general fund expenditure ceiling for fiscal year 2024-2025 to be
further exceeded by an additional $30,334,159.
Therefore, the general fund expenditure ceiling for fiscal year
2024-2025 has already been exceeded by $38,885,954, or one per cent.
The appropriations contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024-2025 to be further exceeded by $10,660,000, or one per cent. This declaration takes into account the additional general fund appropriation authorized for fiscal year 2024-2025 in this Act only. The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the needs addressed by this Act.
SECTION 6.
With the approval of the governor, the department of health may delegate
to other state agencies the implementation of projects related to this Act if
it is determined to be advantageous to do so by both the department of health
and the agency to which expending authority is to be delegated.
SECTION 7. This Act shall take effect upon its approval.
Report Title:
Emergency Appropriation; DOH; Hawaii State Hospital; Construction Defect Remediation; Expenditure Ceiling
Description:
Makes an emergency appropriation to the Department of Health to fund construction defect remediation of the Hale Hoʻola Building at the Hawaii State Hospital, including the payment of legal fees and costs for special deputy attorneys general. Declares that the general fund expenditure ceiling for fiscal year 2024-2025 has been exceeded. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.