CONFERENCE COMMITTEE REP. NO. 118

Honolulu, Hawaii

                 , 2015

RE:    H.B. No. 1366

       S.D. 2

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1366, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO STATE ACQUISITION OR DEVELOPMENT OF REAL PROPERTY,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to identify and acquire or build additional office space in urban Honolulu to accommodate state governmental agencies and offices.

     Specifically, the measure appropriates moneys for:

(1)  The Department of Land and Natural Resources to plan for and acquire the leasehold interest in TMK (1) 2-1-017-008-0000, 2-1-017-008-0001, and 2-1-017-008-0002, and acquire the building thereon, known as Alii Place; and

(2)  The Department of Accounting and General Services to pay the first two years of debt service if and when the acquisition is accomplished.

Your Committee on Conference has amended this measure by:

(1)  Making clarifying amendments to its purpose section;

(2)  Rather than directing the Department of Land and Natural Resources to engage in acquiring Ali‘i Place, instead authorizing the Governor's Office, Department of the Attorney General, Department of Land and Natural Resources, Department of Accounting and General Services, and Department of Budget and Finance to enter into negotiations for the purchase of Ali‘i Place;

(3)  Deleting language regarding the Department of Accounting and General Services' management of the property;

(4)  Removing the appropriation for payment of debt service by the Department of Accounting and General Services;

(5)  Authorizing the Department of Accounting and General Services to perform due diligence in connection with the transaction;

(6)  Requiring a joint progress report from the Department of Land and Natural Resources and the Department of Accounting and General Services prior to the Regular Session of 2016;

(7)  Changing its effective date to July 1, 2015; and

(8)  Making technical, nonsubstantive amendments for the purpose of consistency, clarity, and style.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1366, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1366, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DONOVAN M. DELA CRUZ, Chair	____________________________ RYAN I. YAMANE, Co-Chair
____________________________ JILL N. TOKUDA, Co-Chair	____________________________ SYLVIA LUKE, Co-Chair