STAND. COM. REP. NO.  40-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2745

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 2745 entitled:

"A BILL FOR AN ACT RELATING TO MASS TRANSIT ROUTE ECONOMIC ZONES,"

begs leave to report as follows:

     The purpose of this bill is to examine the economic and human impacts any future mass transit system on the island of Oahu may have on communities along the chosen route by creating a task force to:

     (1)  Examine the feasibility of establishing economic zones         proximate to the route or routes of any future mass           transit system on the island of Oahu, particularly in             areas surrounding transit stops;

     (2)  Recommend parameters for the creation of mass transit              route economic zones including, among other things,            geographic criteria, business eligibility, and benefits       and incentives such as tax credits; and

     (3)  Submit a report of its findings and recommendations to         the legislature prior to the convening of the Regular              Session of 2009.

     The Department of Business, Economic Development, and Tourism (DBEDT) and Department of Taxation supported the intent of this bill.  The Department of Planning and Permitting of the City and County of Honolulu testified in opposition to this measure.  A concerned individual commented on this bill.

     The City and County of Honolulu is currently in the process of establishing a mass transit system for the island of Oahu, including the finalization of its initial route.  While the establishment of this mass transit system is expected to have positive impacts on the community it will serve, negative impacts, particularly on existing businesses near the mass transit routes, are also expected.  Issues such as affordable housing, convenient shopping and parking, and business incentives for areas near the transit route also need to be examined to make the system more viable.  Your Committee finds that the establishment of a task force within DBEDT to examine this issue will only enhance the viability of a mass transit system for Oahu.

     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 H.B. No. 2745 and recommends that it pass Second Reading and be referred to the Committee on Economic Development & Business Concerns.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

JOSEPH M. SOUKI, Chair