STAND. COM. REP. NO. 2357

Honolulu, Hawaii

RE: S.B. No. 3179

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 S.B. No. 3179 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:

(1) Increase the caps for the total contract value for any one capital advancement contract (CAC) and the total aggregate value of CACs in a fiscal year entered by the Department of Transportation with private parties for harbor improvements; and

(2) Add reporting requirements for the Department of Transportation.

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

Your Committee finds that CAC dramatically expedite certain projects at state commercial harbor facilities and increase project efficiencies when private parties lead the projects in a manner that minimizes project impacts on cargo operations. Your Committee further finds that with increased CAC, the Department of Transportation would be able to facilitate improved project delivery. This measure will fast-track desperately needed public improvements to state commercial harbor facilities by accounting for inflation and other rising costs of materials and labor for prioritized projects.

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 S.B. No. 3179 and recommends that it pass Second Reading 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,

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CHRIS LEE, Chair