Honolulu, Hawaii



RE:    H.B. No. 277

       H.D. 2

       S.D. 2




Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 277, H.D. 2, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to foster continued good relations between the State and the United States military in Hawaii.


     Specifically, this measure:


     (1)  Establishes a military affairs liaison trust fund as a separate fund of a Hawaii nonprofit corporation, to be selected by the Governor, to support the nonprofit corporation in its duties as the state liaison in matters relating to the military;


     (2)  Establishes the military affairs liaison trust fund advisory board to make final recommendations to the nonprofit corporation for the expenditure of trust fund moneys for various activities;


     (3)  Establishes the military affairs liaison trust fund advisory committee to foster beneficial relations between the military and the State and advise the state Department of Defense on matters involving the presence of the military in the State and the impact of defense spending on Hawaii's economy;


     (4)  Designates the purposes for which grants from the trust fund may be used; and


     (5)  Makes an unspecified appropriation to support the nonprofit corporation in its duties as state liaison.


     Your Committee received comments in support of this measure from Charles Ota, Vice President for Military Affairs, The Chamber of Commerce of Hawaii.


     Your Committee received comments on this measure from Kalbert K. Young, Director, Department of Budget and Finance.


     Your Committee finds that the United States military and the State continue to have an important, mutually advantageous relationship due to the safety and economic benefits provided by the military and the strategic location of the State.  This measure will continue to strengthen this relationship by providing a liaison between the military and State for a variety of dealings, including being an advocate for the military and small businesses that do business with the military, supporting the military in sensible training while ensuring compliance with state and federal environmental laws, and improving the quality of life for all residents of the State.


     Your Committee has amended this measure by:


     (1)  Deleting the phrase "trust fund" from the title of the chapter to broaden its applicability;


     (2)  Changing the title of section   -1 from "Military affairs liaison trust fund; established" to "Military affairs liaison trust fund; established; military affairs liaison; duties" to better reflect the content of the section;


     (3)  Deleting section   -2 relating to the receipt of funds as redundant and unnecessary;


     (4)  Combining the military affairs liaison trust fund advisory board and military affairs liaison trust fund advisory committee into one entity to be known as the military affairs liaison trust fund advisory committee, placing the advisory committee within the Department of Business, Economic Development, and Tourism for administrative purposes, and clarifying the membership, appointment process, term, and compensation of the advisory committee; and


     (5)  Changing the amount of the appropriation out of the general revenues for deposit into the military affairs liaison trust fund to $1.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 277, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 277, H.D. 2, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,