STAND. COM. REP. NO. 12

Honolulu, Hawaii

RE: S.B. No. 586

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Education and Housing, to which was referred S.B. No. 586 entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL IMPACT FEES,"

beg leave to report as follows:

The purpose and intent of this measure is to repeal the school impact fee exemptions for nonresidential development and housing subject to the transient accommodations tax when seeking development in a designated school impact district requiring county subdivision approval, a county building permit, or condominium property regime approval of the project.

Your Committees received testimony in support of this measure from the one member of the Maui County Council, Hawaii State Teachers Association, Democratic Party of Hawai‘i Education Caucus, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Americans for Democratic Action Hawai‘i, and two individuals. Your Committees received testimony in opposition to this measure from the Building Industry Association of Hawaii; JW, Inc.; Chamber of Commerce Hawaii; and NAIOP Hawaii. Your Committees received comments on this measure from the Department of Education and Tax Foundation of Hawaii.

Your Committees find that the collection of school impact fees are necessary in areas of high growth to accommodate the increase in new families and school enrollments. Traditionally, certain types of development were exempt from school impact fees. However, nonresidential development and housing subject to transient accommodations tax within these emerging communities are found to impact the pace and scale of residential development, increasing the need for more public schools. This measure ensures that as communities grow through residential and other types of development, the need for schools to be built and operate will be met.

As affirmed by the records of votes of the members of your Committees on Education and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 586 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 Education and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ MICHELLE N. KIDANI, Chair