Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2708, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a statewide public school facilities impact fee for new residential developments proportionate to their impacts on public school facilities.

This measure sets forth the amount of impact fees to be paid by a residential development per unit, including single family detached, single family attached, and duplex dwellings, apartments, and condominiums, based on the assessment district the residential development is situated in. Any impact fee assessed and collected shall be deposited in the school impact fee special fund and may only be expended in the benefit district that the assessment district is located. Further, impact fees collected may only be expended on the costs of school construction and may not be expended on operational expenses of existing schools or on the cost of acquiring land for school facilities.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2708, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2708, S.D. 2.