STAND

STAND. COM. REP. NO. 1217

Honolulu, Hawaii

, 2005

RE: S.B. No. 1814

S.D. 2

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Economic Development & Business Concerns and Housing, to which was referred S.B. No. 1814, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO IMPACT FEES,"

beg leave to report as follows:

The purpose of this bill is to authorize the Department of Education (DOE) to assess and collect impact fees, through intergovernmental agreement with a county, as fair share contributions of developers for state public school facilities construction. Funds collected are to be used in the school complex area for capital improvement projects identified in a needs assessment study or comprehensive plan.

DOE and the Land Use Research Foundation of Hawaii supported the intent of this bill.

Your Committees have amended this bill by:

(1) Requiring that impact fees be deposited into an interest-bearing account rather than the state educational facilities impact fee trust fund;

(2) Clarifying that impact fees shall not be levied on multi-year master-planned developments which provide for the dedication of land for public school facilities, or whatever agreement between DOE and the developer that was used at the time; and

(3) Making technical, nonsubstantive amendments to correct drafting errors.

Finally, your Committees have also specified that DOE may continue to negotiate with developers for fair share contributions not to exceed $1,125 per residential unit until rules are adopted and intergovernmental agreements are approved.

As affirmed by the records of votes of the members of your Committees on Economic Development & Business Concerns and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1814, S.D. 2, as amended herein, and recommend that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 1814, S.D. 2, H.D. 1.

Respectfully submitted on behalf of the members of the Committees on Economic Development & Business Concerns and Housing,

____________________________ MICHAEL P. KAHIKINA, Chair		____________________________ ROBERT N. HERKES, Chair