STAND. COM. REP. NO. 1582

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 753
                                        H.D. 2
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 753, H.D. 2, S.D. 1, 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 allow counties to create
special improvement districts.

     In particular, this bill allows a county to create these
districts for the purpose of providing and financing supplemental
maintenance and security services and other improvements to
promote business activity within those districts.  The county may
levy and assess a special assessment on property located within a
special improvement district to finance the maintenance and
operation of the district and to pay the debt service on any
bonds issued to finance improvements within the district.  The
county may also issue and sell bonds to finance improvements
within the district.

     Your Committee agrees with the intent of this bill, and
finds that special improvement districts, also known as "business
improvement districts", have proven to be very successful in the
economic revitalization of many mainland cities, including New
York City's Times Square district and the downtown area of

 
a                                                     HB753 SD2
 
 
                                   STAND. COM. REP. NO. 1582
                                   Page 2


Portland, Oregon.  One positive impact of a special improvement
district is that additional security services can be procured to
create a safer and more attractive environment to encourage
business activity.  Your Committee further finds that Waikiki and
other areas around the State would greatly benefit from a special
improvement district designation.

     Your Committee has further amended this bill by changing the
effective date from upon approval to July 1, 1999, and by making
technical, nonsubstantive changes for the purposes of clarity and
consistency.

     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. 753, 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. 753, H.D. 2, S.D. 2.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB753 SD2