Honolulu, Hawaii



RE:    H.B. No. 277

       H.D. 2

       S.D. 1




Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii




     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred H.B. No. 277, H.D. 2, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Establish the Military Affairs Liaison Trust Fund as a separate fund of a Hawaii nonprofit corporation to be selected by the Department of Defense, with the concurrence of the Governor, to support the nonprofit corporation in its duties as the state liaison in matters relating to the military;


     (2)  Establish the Military Affairs Liaison Trust Fund Advisory Board, which would make final recommendations to the nonprofit corporation for the expenditure of funds for making grants to private nonprofit organizations to foster beneficial relations between the military and the State, among other activities;


     (3)  Establish an Advisory Committee of the Military Affairs Liaison Trust Fund with certain functions relating to the military in Hawaii;


     (4)  Establish the purposes of the grants made by the nonprofit corporation; and


     (5)  Make an appropriation to the nonprofit corporation for purposes of the Military Affairs Liaison Trust Fund.


     Your Committee received testimony in support of this measure from the State Department of Defense and The Chamber of Commerce of Hawaii.  Your Committee received comments on this measure from the Department of Budget and Finance.


     Your Committee finds that the military is one of the largest contributors to Hawaii's economy, and it would be advantageous to expand, foster, and continue the State's excellent relationships with the United States military.  The nonprofit entity would be the catalyst between the military, State, and counties for a variety of actions such as being the advocate between the military and small businesses, supporting the military in realistic training while ensuring compliance with state and federal environmental laws, and promoting activities and programs to enhance the quality of life for military families.


     The intent of your Committee is to send a strong signal to the United States Department of Defense and the senior military leadership that Hawaii truly supports their commitment and continued presence in this State in support of our national military strategy for the Asia and Pacific region.  More importantly, the establishment of this trust will provide a vehicle for the Department of Defense to receive and manage not only appropriated funds, but to also receive donations and contributions from private organizations to ensure a strong partnership with one of the major contributors to the State's economy, the United States military.


     Your Committee has amended this measure by:


     (1)  Requiring the Governor to select a union representative as one of the three members of the Military Affairs Liaison Trust Fund Advisory Board;


     (2)  Requiring the Governor to unilaterally select the nonprofit corporation to serve as the state liaison in military matters; and


     (3)  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 Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 277, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 277, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.


Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,