Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Water, Land, & Ocean Resources and Economic Development & Business Concerns, to which was referred H.B. No. 852 entitled:

beg leave to report as follows:

The purpose of this bill is to repeal the automatic approval process relating to business or development-related permits, licenses, and approvals.

Under section 91-13.5, Hawaii Revised Statutes (HRS), agencies issuing business or development-related permits, licenses, and approvals must specify a maximum time period to reach a decision on an application. If no decision is reached within that time period, the application is automatically approved.

Since its enactment in 1998, many concerns have been raised regarding the shortcomings of this statute. For example, an application for a controversial development may be automatically approved if there is a tie vote or a lack of quorum by the issuing agency. Similarly, an approval could be triggered when an underfunded agency is unable to handle its heavy workload.

The Office of Hawaiian Affairs and the County of Hawaii Planning Department testified in support of this bill. The University of Hawaii Environmental Center supported the intent of this measure, and the Public Utilities Commission (PUC) offered comments. The Department of Land and Natural Resources opposed this bill.

Upon further consideration, your Committees have amended this bill by:

As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Economic Development & Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 852, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 852, H.D. 1, and be referred to the Committee on Finance.