STAND. COM. REP. NO. 2335

Honolulu, Hawaii

RE: S.B. No. 2356

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.B. No. 2356 entitled:

"A BILL FOR AN ACT RELATING TO THE LAND CONSERVATION FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the amount available for conservation by removing the monetary cap for the amount of conveyance taxes collected that can be paid into the land conservation fund.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; The Trust for Public Land; Coastal Planners, LLC; and one individual. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that greater funding needs to be made available for the public purpose of purchasing and protecting forever, land that shelters exceptional, unique, and threatened resources. In 2015, the legislature set a $6,800,000 cap on the amount of conveyance taxes paid into the Land Conservation Fund. In the face of escalating real estate prices and persistent development pressure, this funding mechanism for land conservation continues to lose pace with market values and public demand, resulting in deferred and missed opportunities for many worthy and time-sensitive land acquisitions. This measure will remove the monetary cap on collections and allow for more funding for land acquisition and conservation.

As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2356 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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KAIALI'I KAHELE, Chair