HB1271

SECTION 1. Under the authority set forth in chapters 46 and 226, Hawaii Revised Statutes, the counties prepare general plans, community development plans, or development plans that provide a vision to guide the growth and development of their individual counties. These plans are adopted after extensive local community input. The congruence of state land use district boundaries with adopted county land use plans is critical to the effective implementation of these plans, and to the counties' ability to effectively manage land use to sustain the vision contained in the plans.

This congruence could be accomplished by means of periodic regional or islandwide district boundary amendments. However, under current law, all boundary amendments before the land use commission are required to meet the evidentiary and procedural standards of a "contested case" proceeding. These standards require metes and bounds surveys and archaeological, historical, and cultural surveys of all affected parcels, certified mail notice to every property owner with an interest in affected lands, and the participation of all parties with an interest in all affected lands through formal trial-like hearings with representation by legal counsel. The cost in terms of time, staff resources, and money of such proceedings are prohibitive for a region-wide petition involving multiple parcels.

Thus, the legislature finds that an alternative to the contested case proceeding is needed for regional state land use district boundary amendments based on adopted county plans. A quasi-legislative process for state and county initiated, county plan-based, regional boundary amendments would facilitate long-range planning and land use management.

At the same time, the legislature is very concerned that a shift from the contested case proceeding must be carefully considered and implemented, in order to avoid unintended policy consequences. The legislature finds that it is essential that state interests are addressed and the needs of a diverse range of stakeholders are balanced under a quasi-legislative process.

The purpose of this Act is to authorize a pilot project for the conduct and evaluation of a quasi-legislative, county plan-based boundary amendment procedure based on a joint application by a county and the state office of planning. The Act tasks the office of planning, in consultation with the land use commission and the county planning departments, to conduct the pilot project. The pilot project will be limited to a single county with a county plan adopted within the last five years, and the Act will sunset if the project has not commenced within two years of the effective date of the Act.

The plan-based boundary amendment process shall be conducted in accordance with the provisions set forth in section 2 of this Act. The evaluation component of the project shall include consultation with a range of interest groups, and shall provide findings and recommendations as to the efficacy of the pilot process in terms of improving planning practice and increasing effectiveness in managing growth and development in Hawaii.

SECTION 2. Pilot project for a county plan-based boundary amendment process. The office of planning, in consultation with the executive officer of the state land use commission and the county planning directors, shall implement a pilot project for the conduct and evaluation of a county plan-based boundary amendment process based upon a joint application of a county and the office of planning. Only one county shall be selected for the pilot project. This Act and the pilot project shall sunset if no activity has commenced within twenty-four months of the effective date of this Act.

SECTION 3. Selection of a county for the pilot project. Any county with a general plan, community, or development plan adopted by its county council within five years of the effective date of this Act shall be eligible for participation in the pilot project. Participation in the pilot project will be determined on a first-come, first-served basis. The office of planning shall send a written notice to the county mayors, the chairs of the county councils, and the county planning directors inviting each county to participate in the pilot project, specifying any requirements and the deadline for written letters of interest. The office of planning may consult with the executive officer of the state land use commission in selecting the county to participate in the pilot project. The office of planning shall designate the participating county for the pilot project.

SECTION 4. Pilot plan-based boundary amendment process. (a) The office of planning and the planning department of the designated pilot county shall undertake a joint review of the state land use district boundaries of lands in the affected county. The joint boundary review shall review the district boundaries with respect to the county general plans, county development, or county community plans, the Hawaii state plan and plans prepared pursuant to chapter 226, and the policies and standards contained in this chapter. The office of planning shall prepare a report of the findings of the boundary review and recommendations for boundary amendments for submittal to the state land use commission and the appropriate county planning commission.

(b) The joint boundary review process shall include but not be limited to:

(1) Opportunities for public participation and input on issues and concerns that need to be considered in the boundary review, and feedback on the findings and recommendations being made based on the boundary review;

(2) The identification and recommendation of areas where district boundary amendments would enable conformance of state land use districts and the county plan's land use policies and designations;

(3) The development of recommendations for boundary amendments to be submitted to the land use commission for the pilot process.

(c) The office of planning shall facilitate state and county agency discussions to ensure that state agency concerns and interests, including state infrastructure and support services required to support the land use patterns in the county plans, are raised and addressed in the boundary review process. The office of planning may seek the assistance of appropriate state and county agencies, employ consultants, and undertake additional studies in conducting this review.

(d) Upon completion of the boundary review report, the office of planning and the county planning department shall submit a joint application to the land use commission to amend the district boundaries of certain lands to conform to adopted county plans pursuant to this section, based on recommendations contained in the joint boundary review report. The joint application shall include, but not be limited to:

(1) A listing of each boundary amendment requested;

(2) The rationale for the proposed boundary amendments; and

(3) Documentation of the consistency of each boundary amendment with a land use map contained in a general plan, community development plan, regional development plan, district development plan, or other similar comprehensive plan adopted by ordinance.

(e) Within thirty days from the acceptance of a complete filing of the joint application, the land use commission shall post a copy of the entire application on its website. Not less than thirty days and not more than ninety days from the acceptance of a complete filing of the joint application, the land use commission shall conduct no less than three public hearings on the application on the island or islands where the subject lands are situated. The county and the office of planning shall present the findings of the joint boundary review report and the recommendations contained in the joint application at the first noticed public hearing.

(f) Notwithstanding any provision of the law to the contrary, the land use commission shall provide timely notice in newspapers of general circulation statewide and in a newspaper that is printed and issued at least weekly in the county affected by the proposed action. The notice shall include:

(1) A statement of the topic of the public hearing;

(2) A statement providing the website address for the application;

(3) A statement that a copy of the application shall be mailed to any interested person who requests a copy, pays the required fees for the copy and the postage, if any, together with a description of where and how the requests may be made;

(4) A statement of when, where, and during what times the application may be reviewed in person; and

(5) The date, time, and place where the public hearing or hearings shall be held and where interested persons may be heard on the proposed application.

The notice shall be mailed to all persons who have made a timely written request of the land use commission for advance notice of boundary amendment proceedings. Notice of the hearing or hearings shall be served on the office of planning, county planning commission, and county planning agency of the county in which the land is located.

(g) The boundary amendment proceeding under this section shall be subject to the provisions of chapter 92, Hawaii Revised Statutes, except as contained herein. The commission shall decide the petition solely on matters presented in the record and on testimony at public hearings. Ex parte communication with the members of the land use commission on the subject matter of the application shall be prohibited.

(h) Prior to the hearing of an application under this section, the land use commission and its staff may view and inspect any land that is the subject of the application.

(i) Within one hundred eighty days from the acceptance of a complete filing of an application, the land use commission shall either approve or deny the application as a whole or approve or deny, in part or whole, the individual boundary amendments contained within the application. Any decision under this section shall require the affirmative vote of two-thirds of the members to which the land use commission is entitled. The land use commission shall not impose any conditions on any land or owner of property reclassified to a different state land classification under this application process.

(j) No boundary amendment shall be approved unless the land use commission finds by a preponderance of the evidence that the proposed boundary:

(1) Conforms to the land use pattern in the affected county plan;

(2) Conforms to the applicable state district standards;

(3) Conforms to the applicable goals, objectives, and policies of the Hawaii state plan and relates to the applicable priority guidelines of the Hawaii state plan and the adopted functional plans;

(4) Is consistent with the district policies and standards and the objectives, policies, and criteria related to important agricultural lands contained in chapter 205, Hawaii Revised Statutes; and

(5) Has a positive impact on the following areas of state concern:

(A) Preservation or maintenance of important natural systems or habitats;

(B) Maintenance of valued cultural, historical, or natural resources;

(E) Provision of sufficient reserve area for foreseeable growth.

(k) The land use commission shall maintain a record of the proceeding and issue a written report that itemizes the actions taken and provides the rationale for the actions taken. The land use commission's report shall be transmitted to the county mayors, the chairs of the county councils, the county planning directors, and the office of planning. The land use commission shall also make the report available to the public. The land use commission shall also provide notice to state and county agencies of the changes to land use district boundaries. The land use commission shall be the sole authority responsible for boundary interpretations.

(l) Individual district boundary amendment requests shall be not be permitted under this Act, and shall remain subject to land use commission procedures under sections 205-3.1 and 205-4, Hawaii Revised Statutes. Any land that is denied reclassification under this pilot process may be the subject of a petition under section 205-3.1 or section 205-4, as applicable.

(m) A change in land use district classification of a parcel or parcels resulting from a land use commission decision pursuant to this Act may be appealed to the circuit court of the circuit in which the land in question is found. The district boundaries and classification of parcels not subject to an appeal shall remain in full force and effect. The appeal shall be filed within sixty days of the effective date of the land use commission's decision. The appeal shall be in accord with chapter 91, Hawaii Revised Statutes, and the Hawaii rules of civil procedure.

(n) Any change in the district designation of lands under this section shall not invalidate the county zoning of affected parcels.

(o) Any state or county approval of projects involving a land use or zone change, subdivision, or other entitlement for use on lands that are reclassified by the land use commission pursuant to this section, shall be subject to sections 6E-2, 6E-8, and 6E-42, Hawaii Revised Statutes, pertaining to historic, archaeological, and cultural resource preservation; provided that any applicable studies shall be completed at the earliest stage of the county land use application and decision-making process.

SECTION 5. Certain statutes not applicable to pilot project. Notwithstanding any other law to the contrary, the pilot boundary amendment process conducted pursuant to this Act shall be exempt from chapter 343, Hawaii Revised Statutes, except for boundary amendments that reclassify land from the conservation district; provided that any application for a proposed use on lands reclassified pursuant to this Act, which require ministerial or discretionary approval by a county or state body shall be subject to chapter 343 where such applications require conformance to chapter 343.

SECTION 6. Evaluation of pilot process; report to legislature. (a) The office of planning shall conduct an evaluation of the quasi-legislative, plan-based boundary amendment process with respect to its promotion of sound long-range planning practices and its potential for improving management of growth and development in Hawaii. The evaluation shall include, but not be limited to:

(1) The use of instruments and meetings, such as survey instruments, participatory forums, or public meetings, with which to solicit comments and concerns from the public and a wide range of government, private sector, and community groups on:

(A) The pilot process;

(B) Alternative approaches; and

(2) A description of the pilot boundary review process and an assessment of the efficacy of the pilot boundary review process, including operational problems or impediments that arose in the course of the boundary review;

(3) A description of the pilot plan-based boundary amendment process and an assessment of the efficacy of the pilot boundary amendment process, including operational problems or impediments that arose in the course of the pilot process;

(4) A discussion of the cost of implementing the pilot process with respect to any cost savings or efficiency improvements that may be attributed to the pilot process;

(5) An assessment of the pilot process with respect to its impact or potential impacts on:

(A) The improvement of long-range planning; and

(B) The coordination and effectiveness of state and county efforts to support planned growth or conserve legacy resources; and

(6) The development of recommendations as to whether a plan-based boundary amendment process should be made permanent, and the features and mechanisms that are essential to the successful implementation of such a process.

The office of planning may use consulting services to conduct the evaluation of the pilot process.

(b) The pilot process and the evaluation of the pilot process shall be completed before the opening of the 2012 legislature regular session. The office of planning shall submit a report on the pilot process, including legislative recommendations, no less than twenty days prior to the convening of the 2012 legislature regular session.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000, or so much thereof as may be necessary for fiscal year 2007-2008, for the conduct of the pilot boundary amendment process and the evaluation of the pilot process. The sum appropriated shall be expended by the office of planning to support state and county activities related to the pilot process, and to conduct studies, surveys, or public meetings, as needed, for the evaluation of the pilot process.

SECTION 8. Any provision of this Act to the contrary notwithstanding, the appropriation authorized under this Act shall not lapse at the end of the fiscal year for which the appropriation is made. Any unexpended and unencumbered balance of the appropriation made in this Act as of the close of business on June 30, 2009, shall lapse.

SECTION 9. This Act shall take effect upon its approval, and shall be repealed on June 30, 2012.

INTRODUCED BY:

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BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	1271
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII