STAND. COM. REP. NO. 482

Honolulu, Hawaii

RE:    S.B. No. 721

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.B. No. 721 entitled:

"A BILL FOR AN ACT RELATING TO DISTRICT-WIDE IMPROVEMENT PROGRAMS,"

begs leave to report as follows:

     The purpose of this measure is to change the authority of the Hawaii Community Development Authority (HCDA) to assess the costs of providing public facilities against real property in the community development district from mandatory to discretionary.

     Testimony in support of this measure was submitted by one private organization and five public citizens.  Testimony in support of the intent of the measure, with comments, was provided by one state agency.  Written testimony presented to your Committee may be reviewed on the Legislature's website.

     Your Committee finds that currently, the HCDA is required to assess part of the cost of providing public facilities within improvement districts against real property specially benefiting from such improvements.  However, there are concerns from affected small business landowners that these mandatory assessments could make it prohibitive to do business within the HCDA improvement districts.  Further, landowners may also lose property to accommodate improvements, such as widening of rights-of-way.  Your Committee finds that these hardships may be better addressed if the HCDA is given specific discretion regarding whether to assess these costs or not.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 721 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

CLAYTON HEE, Chair