STAND. COM. REP. NO. 270

Honolulu, Hawaii

RE: S.B. No. 1448

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 Health and Human Services, to which was referred S.B. No. 1448 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 of $8,160,000 from the general fund to the Department of Health to fund construction defect remediation, including the payment of legal fees and cost of special deputies attorney general, of the Hale Hoʻola Building of the Hawaii State Hospital.

Your Committee received testimony in support of this measure from the Department of Health, Department of Budget and Finance, and Department of Accounting and General Services.

Your Committee finds that 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 the Hawaii State Hospital. Your Committee further finds that after the project's acceptance, the State encountered various issues, including the occurrence of water leaks in both the building's exterior and plumbing systems and mold growth, resulting in a significant need for funding to remediate these issues. This measure makes an emergency appropriation to the Department of Health to fund construction defect remediation and reduce potential risks to the health and safety of the patients and staff at the Hawaii State Hospital.

Your Committee has amended this measure by:

(1) Inserting language to declare that the expenditure ceiling for fiscal year 2024-2025 is exceeded; and

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

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1448, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1448, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

________________________________

JOY A. SAN BUENAVENTURA, Chair