STAND. COM. REP. NO.  1157-12


Honolulu, Hawaii

                , 2012


RE:   S.B. No. 2872





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Transportation, to which was referred S.B. No. 2872 entitled:




begs leave to report as follows:


     The purpose of this measure is to allow any utility owner whose facility occupies a state highway right-of-way to provide its share of costs up front to the affected state agency for encumbrance of funds in related contracts by way of an agreement to pay.


     The Department of Transportation testified in support of this measure.


     Your Committee finds that when construction of a state or county highway results in the removal, relocation, replacement, or reconstruction of private utility facilities at an expense exceeding $10,000, section 264-33, Hawaii Revised Statutes (HRS), requires the excess cost to be shared, half by the government, and half by the utility.


     However, according to the Department of Transportation, under Chapter 103D-309, HRS, this cost sharing is only applicable to contracts entered into under section 264-33, HRS, which does not allow for cost sharing for certain types of utility work.  In order to provide for cost sharing to also apply to utility work such as undergrounding and installation of new utility facilities, which does not fall under section 264-33, HRS, section 103D-309(c), HRS, must be amended to delete this limitation.


     Your Committee finds that this measure is intended to address a long-standing challenge for the Department of Transportation to complete projects involving all types of utility work, including undergrounding and new facilities.


     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2872 and recommends that it pass Second Reading and be referred to the Committee on Finance.



Respectfully submitted on behalf of the members of the Committee on Transportation,