STAND. COM. REP. NO. 1101

Honolulu, Hawaii

RE:    H.B. No. 971

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committees on Transportation and Water and Land, to which was referred H.B. No. 971, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ALOHA TOWER DEVELOPMENT CORPORATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to amend the composition of the Aloha Tower Development Corporation's Board of Directors and allow rather than require the Board of Directors to appoint a Chief Executive Officer.

     Specifically, this measure amends the composition of the Board of Directors by:

(1)  Increasing the membership of the Board from three to six;

(2)  Removing the Director of Transportation as a member;

(3)  Adding the Chairperson of the Board of Land and Natural Resources as a member;

(4)  Adding one member to represent the maritime industry, to be appointed by the Governor pursuant to section 26-34, Hawaii Revised Statutes;

(5)  Adding one member to be appointed by the Speaker of the House of Representatives; and

(6)  Adding one member to be appointed by the President of the Senate.

     Your Committees received testimony in support of this measure from the Department of Transportation.

     Your Committees find that the present three member board presents challenges in conducting Aloha Tower Development Corporation business.  Due to the State's Sunshine Law, communication and interaction between the Director of Transportation and Deputy Director of Harbors Division, who are both Aloha Tower Development Corporation Board members, is awkward and delicate even when they are performing their primary position's perfunctory activities.  In addition, the functioning of the Aloha Tower Development Corporation Board of Directors would be more effective if more perspectives are represented.

     Your Committees have amended this measure by:

     (1)  Deleting the addition of a maritime representative as a member of the Board of Directors;

     (2)  Designating the Deputy Director of Transportation, Harbors Division as chairperson, rather than requiring a majority vote to select the chairperson;

     (3)  Repealing the position of chief executive officer; and

     (4)  Changing the effective date to July 1, 2015.

     As affirmed by the records of votes of the members of your Committees on Transportation and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 971, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 971, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Water and Land,

________________________________ LAURA H. THIELEN, Chair

________________________________ CLARENCE K. NISHIHARA, Chair