Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Water, Land Use, and Hawaiian Affairs and Human Services and Housing, to which was referred H.B. No. 2026 entitled:

beg leave to report as follows:

The purpose of this bill is to:

(1) Increase the supply of affordable housing; and

(2) Provide for greater protection of the environment

by increasing the portions of conveyance tax proceeds paid into the Rental Housing Trust Fund and the Natural Area Reserve Fund from 25 percent to 50 percent, respectively.

The Department of Community Services of the City and County of Honolulu, Catholic Charities Hawaii, Nature Conservancy, Sierra Club, Hawaii Chapter, Hawaii Audubon Society, Conservation Council for Hawaii, and KAHEA testified in support of this measure. The Department of Land and Natural Resources, Housing and Community Development Corporation of Hawaii, and Department of Taxation supported the intent of the bill. Testimony in opposition was submitted by the Department of Budget and Finance, Pacific Housing Assistance Corporation, and Hawaii Association of Realtors. The Tax Foundation of Hawaii commented.

Your Committees find that there is a critical need to address the plight of Hawaii's homeless. Your Committees further find that DLNR's conservation and endangered species programs are vastly underfunded.

However, upon consideration of the cost concerns stated by DLNR and HCDCH, your Committees have amended this bill to remove the proposed increase in conveyance tax revenues to be paid into the Natural Area Reserve Fund, leaving the existing 25 percent allocation to that fund untouched.

Your Committees recognize the strong recommendations by members for amendments that would provide a permanent funding source for the homeless, including a "surcharge" for the conveyance of properties valued in excess of $500,000.00. Another suggested amendment would allocate funds directly to the Natural Area Reserves System. These worthy suggestions will be pursued through other avenues.

As affirmed by the records of votes of the members of your Committees on Water, Land Use, and Hawaiian Affairs and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2026, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2026, H.D. 1, and be referred to the Committee on Finance.