STAND. COM. REP. NO. 2681

Honolulu, Hawaii

RE:    S.B. No. 2743

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2743, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE KAHO‘OLAWE ISLAND RESERVE,"

begs leave to report as follows:

     The purpose and intent of this measure is to use a portion of state conveyance tax revenues to replenish the Kahoolawe Rehabilitation Trust Fund to be used for the long-term rehabilitation and maintenance of the Kahoolawe Island Reserve.  

     Your Committee received written comments in support of this measure from the Department of Planning of the County of Maui, the Kahoolawe Island Reserve Commission, and sixteen individuals.  The Department of Land and Natural Resources and the Tax Foundation of Hawaii submitted written comments on this measure.  

     Your Committee finds that the island of Kahoolawe is one of Hawaii's greatest treasures and the historical and cultural significance of Kahoolawe needs to be preserved and protected.  Your Committee further finds that by adding an additional source of revenue, the Kahoolawe Rehabilitation Trust Fund will be adequately funded to ensure the long-term restoration and protection of the island.

     Your Committee has amended this measure by:

(1)  Changing the portion of the amount of conveyance tax revenues to be paid into the Kahoolawe Rehabilitation Trust Fund from 10 per cent to an unspecified amount;

(2)  Changing the annual maximum amount of conveyance tax revenue paid into the Kahoolawe Rehabilitation Trust Fund from $3,500,000 to an unspecified amount;

(3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(4)  Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2743, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2743, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair