STAND. COM. REP. NO.  660-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2318

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2318, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HOMELESS,"

begs leave to report as follows:

     The purpose of this bill is to help chronically homeless individuals by:

     (1)  Establishing a Housing First pilot program administered by the Hawaii Public Housing Authority (HPHA) in collaboration with the Department of Human Services (DHS);

     (2)  Establishing the Parks for Homeless Special Fund into which shall be deposited the designated portion of the conveyance tax and matching funds from the counties;

     (3)  Increasing the conveyance tax by fifteen percent on properties valued at $1,200,000 and above, a portion of which is to be deposited into the Parks for Homeless Special Fund; and

     (4)  Appropriating funds from the Parks for Homeless Special Fund to implement the costs of the pilot program.

     Several concerned individuals testified in support of this bill.  The Department of Taxation; Department of Parks and Recreation of the City and County of Honolulu; Finance Department of the County of Hawaii; County of Maui; Alexander & Baldwin, Inc.; Hawaii Association of REALTORS; and Land Use Research Foundation of Hawaii opposed this measure.  DHS, Department of Budget and Finance, Department of Accounting and General Services, Department of Community Services and Department of Budget and Fiscal Services of the City and County of Honolulu, Tax Foundation of Hawaii, and several concerned individuals provided comments.

     Your Committee has amended this bill by:

     (1)  Renaming the Parks for Homeless Special Fund to the Housing First Special Fund;

     (2)  Specifying that the Housing First Special Fund will be administered by HPHA;

     (3)  Deleting the specific percentage increase in the conveyance tax on properties valued at $1,200,000 and above;

     (4)  Deleting the specific percentage of the conveyance tax to be deposited into the Housing First Special Fund;

     (5)  Making the counties' matching-funds contribution to the Housing First Special Fund permissive, rather than mandatory;

     (6)  Changing the effective date to July 1, 2020, to encourage further discussion; and

     (7)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2318, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2318, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair