STAND. COM. REP. NO.  514

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 389

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Water, Land, & Ocean Resources and Hawaiian Affairs, to which was referred H.B. No. 389, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LAND USE,"

beg leave to report as follows:

     The purpose of this bill is to protect one of Hawaii's wetland areas and restore it to productive use.  Specifically, this measure seeks to protect and restore the Heeia wetlands, eliminate invasive species in the area, and establish an agricultural and educational center at the wetlands by, among other things:

     (1)  Establishing the Heeia Community Development District, and stipulating its boundaries;

     (2)  Establishing general policies to guide the development of the District;

     (3)  Creating the Heeia Development Community Revolving Fund along with a dedicated revenue stream to be deposited into the Fund; and

     (4)  Providing the Hawaii Community Development Authority (HCDA) with the authority to assess all land users for their fair share of the costs required to administer and operate the District.

     The Chair of the Kahalu'u Neighborhood Board No. 29, HCDA, The Nature Conservancy of Hawaii, Kako'o 'Oiwi of Hawaii, Ko'olaupoko Hawaiian Civic Club, and several concerned individuals testified in support of this bill.  The Department of Budget and Finance and Department of Business, Economic Development, and Tourism provided comments.

     Your Committees have amended this bill by:

     (1)  Increasing the number of individuals appointed to HCDA to represent the District from two to three;

     (2)  Deleting the provision that provides HCDA with the authority to assess fees for the administration and operation of the District;

     (3)  Inserting language stipulating that the special management area permit administration for the District shall continue to be under the authority of the City and County of Honolulu; and

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

     As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 389, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 389, H.D. 2, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water, Land, & Ocean Resources and Hawaiian Affairs,

____________________________ FAYE HANOHANO, Chair

____________________________ JERRY L. CHANG, Chair