STAND. COM. REP. NO. 2427

Honolulu, Hawaii

RE:    S.B. No. 2698

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Economic Development, Government Operations and Housing, to which was referred S.B. No. 2698 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:

     (1)  Establish an appeal process for persons adversely affected by an action or decision of the Hawaii Community Development Authority; and

     (2)  Require additional public notice, public input, and studies prior to the Authority's approval of development projects.

     Your Committee received testimony in support of this measure from UNITE HERE, Local 5; Malama Makaha; and 44 individuals.  Your Committee received testimony in opposition to this measure from the Hawai‘i Construction Alliance, Plumbers and Fitters UA Local 675, and Hawaii Laborers' Union.  Your Committee received comments on this measure from the Department of the Attorney General; The Chamber of Commerce of Hawaii; Kamehameha Schools; The Pacific Resource Partnership; Alexander & Baldwin, Inc.; Hawaii Regional Council of Carpenters; and three individuals.

     Your Committee finds that the Legislature established the Hawaii Community Development Authority in 1976 as a public entity to plan new and innovative forms of urban redevelopment and renewal to meet certain community needs, especially the provision of low- and moderate-income housing located in residential and mixed-use areas with sufficient public facilities and services.  To ensure that comprehensive and coordinated development plans were executed by and for the community, the Authority was explicitly required to engage affected communities in area development plans and projects.

     Your Committee further finds that development projects that do not comply either with legislative goals or the applicable development plans established for community development districts have been permitted, sometimes on an accelerated basis.  The approval processes for proposed projects also lack accountability and transparency which are to the detriment of the communities affected.

     Your Committee has amended this measure by:

     (1)  Amending language to allow a person adversely affected by an action or decision of the Hawaii Community Development Authority to file a petition for reconsideration, instead of a contested case proceeding, within thirty days of the action or decision and have the option for judicial review; and

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Economic Development, Government Operations and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2698, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2698, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Government Operations and Housing,

____________________________

DONOVAN M. DELA CRUZ, Chair