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. 2901 entitled:

begs leave to report as follows:

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

The measure accomplishes this by repealing the definition of "county" from the state highway impact fee law, which limited the term to those counties having a population of over five hundred thousand.

As such, your Committee understands that presently, only the city and county of Honolulu is authorized to assess impact fees as a condition for building permits for improvements needed to serve new developments. However, development occurs in and impacts every county and county-specific transportation plans will cost several billion dollars more than the State can afford. This measure will provide the counties of Maui, Hawaii, and Kauai with another means of financing state projects that might otherwise be indefinitely postponed.

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. 2901 and recommends that it pass Third Reading.