STAND

STAND. COM. REP. NO. 274

Honolulu, Hawaii

, 2005

RE: S.B. No. 1814

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Education and Military Affairs and Water, Land, and Agriculture, to which was referred S.B. No. 1814 entitled:

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

beg leave to report as follows:

The purpose of this measure is to authorize the Department of Education to assess and collect impact fees for school facilities.

Testimony in support of the measure was submitted by the Department of Education. The Governor and Honolulu Department of Planning and Permitting submitted comments.

Your Committees find that the Department of Education has been struggling with funding its various construction projects. Although there have been some advances in alleviating the number of the department's growing projects, other methods of funding are needed. This measure offers an alternative funding mechanism by authorizing the Department of Education to assess and collect impact fees by intergovernmental agreement with a county, as fair share contributions of developers for public school facilities construction.

In consideration of the Department of Education's testimony, your Committees have amended this measure by:

(1) Deleting references to county approval of a needs assessment study;

(2) Eliminating the establishment of the state educational impact fee trust fund;

(3) Removing provisions allowing the department to negotiate with developers without an agreement;

(4) Correcting references to multi-year agreements; and

(5) Adding an appropriation section for the needs assessment studies.

As affirmed by the records of votes of the members of your Committees on Education and Military Affairs and Water, Land, and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1814, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1814, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Military Affairs and Water, Land, and Agriculture,

____________________________ RUSSELL S. KOKUBUN, Chair		____________________________ NORMAN SAKAMOTO, Chair