STAND. COM. REP. NO. 392

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 753
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred H.B. No.
753 entitled: 

     "A BILL FOR AN ACT RELATING TO THE ESTABLISHMENT OF SPECIAL
     IMPROVEMENT DISTRICTS,"

begs leave to report as follows:

     The purpose of this bill is to authorize the counties to
create special improvement districts by ordinance to provide and
finance supplemental maintenance and security services and other
improvements, services, and facilities within the special
improvement district as the county council determines will
restore or promote business activity in the district.

     The Office of Planning, the Office of Waikiki Development of
the City and County of Honolulu, and Outrigger Enterprises
testified in support of the measure.

     Your Committee believes that this measure will help
revitalize and restore business activity in those areas
designated as special improvement districts by involving
businesses and property owners in a given area to pay for and
provide certain services that are over and above that which is
routinely provided for by the counties.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 392
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Giving flexibility to the State and counties to exempt
          property under the special improvement districts from
          the assessments as provided in the bill; and

     (2)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Tourism that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
753, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 753, H.D. 1, and
be referred to the Committee on Finance.

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



                                   ______________________________
                                   JERRY L. CHANG, Chair