STAND. COM. REP. NO. 1790

Honolulu, Hawaii

RE: H.B. No. 960

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 960, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose and intent of this measure is to increase fiscal caps on capital advancement contracts executed by the Department of Transportation.

More specifically, this measure:

(1) Increases the maximum value of capital advancement contracts that may be executed by the Department of Transportation without legislative approval;

(2) Increases the minimum value of capital advancement contracts requirement for the Department of Transportation to obtain legislative approval through a concurrent resolution;

(3) Increases the total aggregate value of capital advancement contracts that the Department of Transportation may enter into in a fiscal year; and

(4) Establishes certain reporting requirements related to capital advancement contracts.

Your Committee received written comments in support of this measure from the Department of Transportation and Chamber of Commerce of Hawaii.

Your Committee finds that the Department of Transportation is authorized to enter into capital advancement contracts with private parties for any public improvement to, or construction of, a state harbor facility if the Director of Transportation determines that the contract promotes the best interest of the State and meets certain requirements. Your Committee further finds that the fiscal caps on capital advancement projects limit the scope, type of work, and number of projects that can be executed under capital advancement contracts.

If a Committee on Conference is convened on this measure, your Committee respectfully requests that the Committee on Conference consider the testimony of the Department of Transportation, which recommended that the current caps of $2,000,000 per contract, or aggregate $5,000,000 per party, be increased to at least $5,000,000 per contract and aggregate $20,000,000 per party.

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. 960, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair