STAND. COM. REP. NO. 3230

Honolulu, Hawaii

RE: H.B. No. 2490

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred H.B. No. 2490, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CAPITAL ADVANCEMENT CONTRACTS,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the caps for the total contract value for any one capital advancement contract and the total aggregate value of capital advancement contracts in a fiscal year entered into by the Department of Transportation with private parties for harbor improvements and add reporting requirements for the Department.

Your Committee received testimony in support of this measure from the Department of Transportation; Hawaii Harbors Users Group; Matson Navigation Company, Inc.; and Young Brothers, LLC.

Your Committee finds that the Department of Transportation is authorized to enter into capital advancement contracts with private entities for any public improvement to or construction of a state port facility when the Director of Transportation determines that a capital advancement contract promotes the best interest of the State. Your Committee further finds that in recent years, this tool has proven effective in expediting project delivery, especially for projects that increase port resilience and operational efficiency. This measure will ensure the Department of Transportation is able to adjust to escalating project costs due to inflation and rising costs of materials and labor by increasing the existing cap for capital advancement contracts.

Your Committee has amended this measure by inserting an effective date of July 1, 2024.

As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2490, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2490, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,

________________________________

CHRIS LEE, Chair