STAND. COM. REP. NO.  20

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 617

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 617 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, among other things:

(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 that are economically depressed;

(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;

(3)  Examine:

     (A)  The need for the exercise of eminent domain;

(B)  Potential jurisdictional conflicts between the State and the City and County of Honolulu; and

(C)  The costs of implementing mass transit route economic zones;

and

(6)  Submit a report of its findings and recommendations to the Legislature prior to the convening of the Regular Session of 2010.

     The Hawaii Association of REALTORS and Housing Hawaii testified in support of this bill.  The Department of Business, Economic Development, and Tourism supported the intent of this measure.  The Department of Transportation, Hawaii Housing Finance and Development Corporation, and Department of Planning and Permitting of the City and County of Honolulu submitted comments.

     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.  The establishment of this mass transit system is expected to have both positive and negative impacts on the community it will serve, particularly on existing businesses near the mass transit routes.  Issues such as affordable housing, convenient shopping and parking, business incentives for areas near the transit route, jurisdictional issues, and cost issues also need to be examined to make the system more viable.  While your Committee understands the concerns raised regarding the establishment of this task force this early in the transit development process, your Committee finds that the establishment of this task force to examine these issues 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. 617 and recommends that it pass Second Reading and be referred to the Committee on Economic Revitalization, Business, & Military Affairs.

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

____________________________

JOSEPH M. SOUKI, Chair