STAND. COM. REP. NO. 376-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2073

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Water & Land, to which was referred H.B. No. 2073 entitled:

"A BILL FOR AN ACT RELATING TO URBAN REDEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize a local redevelopment agency to contract with a developer for construction of non-residential uses on public land within a redevelopment area; and

(2) Exempt construction of works or improvements of a redevelopment project from General Excise and Use Taxes.

An individual supported this measure. Hawaiian Civic Club of Honolulu opposed this measure. The Department of Land and Natural Resources, Department of Taxation, Office of Hawaiian Affairs, and Ho‘omanapono Political Action Committee provided comments.

Your Committee has amended this measure by:

(1) Establishing a ten-year pilot project that allows a local redevelopment agency to contract with a developer for construction of non-residential uses on public land within the Kanoelehua Industrial Area and Banyan Drive region;

(2) Amending the general excise tax exemption to clarify that all gross income received for the construction of any work or improvements of a redevelopment project shall be exempt from the general excise tax;

(3) Requiring that this measure be repealed on June 30, 2028;

(4) Changing its effective date to July 1, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2073, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2073, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

RYAN I. YAMANE, Chair