STAND. COM. REP. NO. 2860

Honolulu, Hawaii

RE:    H.B. No. 2819

       H.D. 1

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Water, Land, and Housing, to which was referred H.B. No. 2819, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the Hawaii Community Development Authority to determine the costs and benefits of selling and purchasing certain properties within the Kakaako Community Development District and submit a report to the Legislature ninety days after the effective date of the measure.

     Your Committee received comments on this measure from the Hawaii Community Development Authority.

     Your Committee finds that the Hawaii Community Development Authority (Authority) is able to purchase and hold title to lands subject to availability of funding without any legislative action.  However, legislative approval is required prior to any sale of land owned or under the control of the State.  Situations within the district have arisen where it may have been profitable or beneficial to the Authority to expedite real property transactions.  Thus, your Committee finds it necessary to be informed of the costs and benefits of the selling and purchasing of various properties within the district.

     In order to be fully prepared for such situations, your Committee has amended this measure by:

     (1)  Amending section 206E-31.5, Hawaii Revised Statutes, to limit the prohibition on the sale or assigning of the fee simple interest of certain lands in the Kakaako Community Development District to the makai lands in the Kakaako Community Development District;

     (2)  Excluding makai lands from the properties within the Kakaako Community Development District subject to the Authority's analysis of costs and benefits of sale and purchase;

     (3)  Changing the effective date to upon approval; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Water, Land, and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2819, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2819, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Housing,

____________________________

DONOVAN M. DELA CRUZ, Chair