STAND. COM. REP. NO. 312

Honolulu, Hawaii

RE:    S.B. No. 188

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Education and Housing, to which was referred S.B. No. 188 entitled:

"A BILL FOR AN ACT RELATING TO HOUSING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Require an unspecified percentage of general excise taxes collected on real property leases to be deposited into the rental housing trust fund; and

     (2)  Increase from thirty to fifty per cent the amount of the conveyance tax to be deposited into the rental housing trust fund.

     Testimony in support of this measure was submitted by two state agencies, one county agency, five private organizations and two individuals.  Comments were submitted by one state agency and two private organizations.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that this measure is one of many under consideration by the Legislature in response to severe shortages of affordable housing in Hawaii.  Your Committee is concerned that a long-term economic crisis will further worsen what is already a challenging housing market for Hawaii residents.

     Your Committee has heard and approved a wide range of proposed initiatives related to the use of conveyance tax revenue, and encourages further legislative discussions on the proposals in this measure.

     Your Committee has amended this measure by requiring an unspecified percentage of the conveyance tax to be paid into the Hawaiian home lands trust fund established pursuant to section 213.6, Hawaiian Homes Commission Act of 1920, as amended.

     As affirmed by the record of votes of the members of your Committee on Education and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 188, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 188, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Education and Housing,

____________________________

NORMAN SAKAMOTO, Chair