STAND. COM. REP. NO. 999

Honolulu, Hawaii

RE: S.B. No. 1448

S.D. 2

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 S.B. No. 1448, S.D. 1, entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HEALTH FOR CONSTRUCTION DEFECT REMEDIATION AT THE HAWAII STATE HOSPITAL,"

begs leave to report as follows:

The purpose and intent of this measure is to make an emergency appropriation to the Department of Health.

More specifically, this measure appropriates moneys for:

(1) Construction defect remediation of the Hale Hoola Building of the Hawaii State Hospital; and

(2) Payment of legal fees and cost of special deputy attorneys general.

Your Committee received written comments in support of this measure from the Department of Accounting and General Services, Department of Health, and State Council on Mental Health.

Your Committee received written comments in opposition to this measure from two individuals.

Your Committee finds that the Hawaii State Hospital has encountered significant design and construction defects in its new Hale Hoola Building, including water leaks in the building's exterior and plumbing systems, leading to mold growth. Your Committee further finds that immediate action is necessary to address these issues for the safety and health of patients and staff. Accordingly, your Committee finds that this measure's emergency appropriation will help address these issues immediately.

Your Committee has amended this measure by:

(1) Requiring any moneys awarded from potential legal proceedings to be deposited into the general fund;

(2) Changing the appropriation amount from $8,160,000 to an unspecified amount;

(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(4) 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 S.B. No. 1448, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1448, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair