SB1368

SECTION 1. The legislature finds that there are cases where lands reclassified by the land use commission to the urban district are undeveloped for many years after the reclassification. The legislature is concerned that in some cases conditions have changed so significantly that the development proposal as originally conceived may warrant review and reconsideration. The legislature also finds that premature urban or rural classification encourages speculative land banking and creates uncertainty in the buildout of planned urban or rural capacity and associated infrastructure. This bill provides for the development of a use-it-or-lose-it mechanism to ensure more effective timing of development of planned or approved urban or rural capacity.

SECTION 2. Chapter 205, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§205- Reversion of district classification. (a) The commission shall establish a process, including conducting public hearings under Chapter 91, Hawaii Revised Statutes, to develop deadlines for substantial progress in the development for any petition approved for reclassification to the urban or rural district. In developing guidelines for reclassification deadlines, the commission may consult with petitioners in prior land use classifications proceedings, prior land use classifications parties on the record, land use experts, environmental experts, people knowledgeable in transportation and related infrastructure impacts, elected officials and community representatives.

(b) By December 31, 2008 the commission shall adopt rules pursuant to Chapter 91 to guide the commission's process to identify deadlines for substantial progress in the development of any petition for reclassification to the urban or rural district.

(c) The recommendations of the commission and subsequent implementation of a use-it-or-lose-it policy shall not apply to land that is the subject of a state- or county-initiated petition for a regional boundary amendment based upon a regional boundary review; nor shall it apply to any petition approved by the commission or accepted for filing by the commission prior to the effective date of the adoption of a use-it-or-lose-it system."

SECTION 3. The commission shall hold a series of hearings in each county to gather input on this issue. The commission shall prepare a report on the recommendations brought forth in such hearings and submit the report to the Legislature and Governor prior to the 2008 session.

SECTION 4. There is appropriated out of the general revenues the sum of $50,000 in fiscal year 2007-2008 for the purpose of carrying out the provisions of this Act. The land use commission within the department of business, economic development and tourism, shall be the expending agency

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST

THE SENATE	S.B. NO.	1368
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII