HB 1157: RELATING TO CAPITAL ADVANCEMENT CONTRACTS.

A BILL FOR AN ACT

RELATING TO CAPITAL ADVANCEMENT CONTRACTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 266-19.5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  The department of transportation may execute capital advancement contracts pursuant to subsection (a) with a total contract value of [$2,000,000] $5,000,000 or less without legislative approval.  [If the total value of a capital advancement contract pursuant to subsection (a) is greater than $2,000,000 then the department of transportation shall obtain legislative approval in the form of the adoption of a concurrent resolution affirming the purpose, project, and contract issuance prior to executing the capital advancement contract.]  The total aggregate value of all capital advancement contracts entered into by the department pursuant to this section shall not exceed [$5,000,000] $20,000,000 in any [calendar] fiscal year.  The department shall submit a report to the legislature of all executed capital advancement contracts for the previous twelve month period from July 1 to June 30 no later than twenty days prior to the convening of the regular session of 2026 and each regular session thereafter."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

Report Title:

DOT; Harbor Improvements; Capital Advancement Contracts

Description:

Amends section 266-19.5(d), HRS, for the purpose of increasing the cap for the contract value of any one capital advancement contract (CAC) and the cap for the total aggregate value of CACs in a fiscal year entered into by the Department of Transportation with private parties for harbor improvements. Adds reporting requirements for the department.

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