Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Intergovernmental Affairs, to which was referred S.B. No. 2025 entitled:

begs leave to report as follows:

The purpose of this measure is to increase the period of time in which impact fees shall be expended or encumbered by counties from six to ten years.

The City and County of Honolulu Department of Budget and Fiscal Services and one individual submitted testimony in support of this measure. The Department of Transportation submitted testimony in support of the intent of this measure.

Your Committee finds that the current six-year period does not provide sufficient time for impact fees to be used for certain projects. Extending the period of time in which fees shall be expended or encumbered by counties will allow for greater flexibility in planning and execution of infrastructure development.

As affirmed by the record of votes of the members of your Committee on Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2025 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.