Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 3062 entitled:

beg leave to report as follows:

The purpose of this measure is to ensure that impact fees collected from developers are used for the benefit of the development for which the fees were assessed, and to clarify that schools and transportation infrastructure are types of public facilities for which impact fees are to be expended.

The Department of Education, Department of Transportation, City and County of Honolulu, and Mililani Mauka/Launani Valley Neighborhood Board No. 35 testified in support of this measure. The Land Use Research Foundation of Hawaii and an individual offered comments. Four Maui County councilmembers opposed the measure.

Your Committees find that the development of schools and roads has not kept pace with new home construction in the State. Schools are already over capacity by the time they open their doors to the first student and traffic problems continue to worsen as more and more residents move into newly-established communities. Your Committees find that impact fees collected by developers should be utilized to address the education and transportation needs of these communities.

This measure clarifies that impact fees assessed and collected by the counties for a specific development shall be reasonably related to the benefits accruing to that development. This measure also provides that public facilities include schools and transportation infrastructure.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3062, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3062, S.D. 1, and be placed on the calendar for Third Reading.