STAND. COM. REP. NO. 2625

Honolulu, Hawaii

RE: S.B. No. 3057

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3057 entitled:

"A BILL FOR AN ACT RELATED TO LAND-SECURED FINANCING,"

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the use of land-secured financing by the counties.

More specifically, this measure:

(1) Expands the authority of counties to use land-based financing to support operating costs for certain county services provided within improvement districts and community facilities districts;

(2) Allows county maintenance of the capital improvements to be land-based financed; and

(3) Authorizes counties to use up to an unspecified percentage of the assessments or tax revenues to cover administrative expenses in creating and administering the improvement or community facilities districts and the associated assessments, fees, and taxes.

Your Committee received comments on this measure from the City and County of Honolulu Department of Budget and Fiscal Services and the Tax Foundation of Hawaii.

Your Committee finds that land-secured financing provides an opportunity for the counties to support new and existing development-related operating costs, such as police, fire protection, and maintenance services, in addition to special improvements and infrastructure. Your Committee notes that, pursuant to section 46-80.1, Hawaii Revised Statutes, the counties are already authorized to set aside funds to cover administrative expenses. As a result, your Committee further finds that the language in the measure that authorizes unspecified amounts of assessments and tax revenues for such purposes is unnecessary.

Your Committee has amended this measure by:

(1) Deleting provisions that authorize the use of unspecified amounts of assessments and tax revenues for the counties to cover administrative expenses; and

(2) Making technical nonsubstantive amendments for the purposes of consistency, clarity, 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. 3057, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3057, S.D. 1.

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

________________________________

DONOVAN M. DELA CRUZ, Chair