Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 2901 entitled:

begs leave to report as follows:

The purpose of this bill is to allow all counties to assess, impose, levy, collect, and transfer to the Department of Transportation (DOT) impact fees relating to state highway improvements.

The Mayor of the County of Hawaii testified in support of this bill.

As counties become more developed, there is a need for infrastructure to support these new developments. Currently, only the City and County of Honolulu is authorized to assess impact fees as a condition for building permits for improvements to serve new developments. However, new developments are being built in every county which impact every county, and ultimately state transportation plans and projects. Allowing for the collection of these impact fees will assist in the development of needed transportation infrastructure.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2901 and recommends that it pass Second Reading and be referred to the Committee on Finance.