STAND. COM. REP. NO. 2390

Honolulu, Hawaii

RE:    S.B. No. 2995

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Economic Development, Environment, and Technology and Transportation and Energy, to which was referred S.B. No. 2995 entitled:

"A BILL FOR AN ACT RELATING TO TRANSIT-ORIENTED DEVELOPMENT,"

beg leave to report as follows:

     The purpose and intent of this measure is to establish a business mitigation relief pilot program to assist businesses along the Honolulu rail transit project alignment that have been negatively impacted by the construction of the rail.

     Your Committees received testimony in support of this measure from the Chamber of Commerce Hawaii, Katsumi Kazama Family Partners, and eighteen individuals.  Your Committees received testimony in opposition to this measure from one individual.

     Your Committees find that the Honolulu rail transit project represents the largest capital project in the history of the City and County of Honolulu.  Local businesses along the rail project alignment are currently being economically impacted by the construction of the rail project.  While the Honolulu Authority for Rapid Transportation is adhering to federal and state laws that require the relocation of and advisory assistance to all businesses affected by the construction, this assistance may not be adequate.

     Your Committees have concerns regarding the funding mechanism of this measure and recommend that if your Committee on Ways and Means chooses to pass this measure, that it consider requiring a portion of the surcharge on the general excise tax and use tax be designated to support business mitigation relief.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     As affirmed by the records of votes of the members of your Committees on Economic Development, Environment, and Technology and Transportation and Energy that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2995, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2995, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Environment, and Technology and Transportation and Energy,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ GLENN WAKAI, Chair