STAND. COM. REP. NO. 2247

Honolulu, Hawaii

RE: S.B. No. 2951

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Housing and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 2951 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Clarify the interests that are required to be represented by members who represent community development districts on the Hawaii Community Development Authority;

(2) Require the Senate President and the Speaker of the House of Representatives, rather than the relevant county council, to nominate certain representatives to serve on the community development districts;

(3) Require certain representatives who serve on the community development districts to be nominated as a resident representative or a small business owner or nonprofit organization, but not both; and

(4) Amend the definition of "small business" to require the business to have less than an unspecified number of employees on payroll and be within the physical boundaries of the applicable community development district where its principal place of operations takes place, rather than requiring the small business to not be dominant in its field of operation.

Your Committees received testimony in support of this measure from the Hawaii Energy Policy Forum, Free Access Coalition, and one individual.

Your Committees find that under existing law, the Honolulu City Council, as the council of the county in which all of the community development districts of the Hawaii Community Development Authority are located, nominates individuals to be appointed by the Governor to represent the Heeia, Kalaeloa, and Kakaako community development districts. The Hawaii Community Development Authority includes among its membership three representatives of the Kakaako community development district, including two residents of the district and one owner of a small business or one officer or director of a nonprofit organization in the district. Your Committees further find that in 2017, confusion arose amongst Honolulu City Council members regarding the nomination process for the members representing the Kakaako community development district. Given the important responsibilities of these members in determining the development of designated areas of the State, this measure clarifies the nomination process of these members and the members representing the other community development districts.

As affirmed by the records of votes of the members of your Committees on Housing and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2951 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ WILL ESPERO, Chair