STAND. COM. REP. NO. 1201-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2940

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred S.B. No. 2940, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE STADIUM DEVELOPMENT DISTRICT,"

begs leave to report as follows:

The purpose of this measure is to support redevelopment of the Stadium Development District by:

(1) Establishing the stadium development special fund;

(2) Establishing general development guidance policies governing the Stadium Authority's actions in the Stadium Development District;

(3) Requiring the Stadium Authority to submit to the Legislature an annual comprehensive status report on the progress of development within the Stadium Development District;

(4) Expanding the powers and duties of the Stadium Authority to include acquiring and holding title to real property;

(5) Exempting lands to which the Stadium Authority holds title from the definition of "public lands";

(6) Requiring the Stadium Authority to obtain legislative approval of the sale or gift of lands to which the Stadium Authority holds title;

(7) Transferring authority to issue leases of lands within the Stadium Development District from the Hawaii Community Development Authority (HCDA) to the Stadium Authority;

(8) Authorizing the Stadium Authority, with approval from the Governor, to delegate to other state agencies the implementation of capital improvement projects under certain conditions;

(9) Repealing part IX, chapter 206E, Hawaii Revised Statutes, relating to the Stadium Development District;

(10) Transferring expending agency authority from HCDA to the Stadium Authority for the expenditure of general fund appropriations and revenue bond and general obligation bond proceeds provided in Act 268, Session Laws of Hawaii (SLH) 2019; and

(11) Appropriating $1,000,000 in general funds for fiscal year 2020-2021 for the Stadium Authority.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services, Hawaii Community Development Authority, and Stadium Authority. Your Committee received comments on this measure from the Department of Land and Natural Resources (DLNR); PVT Land Company, Ltd.; and League of Women Voters of Hawaii.

Your Committee finds that in addition to the general funds appropriated in this measure, Act 268, SLH 2019, provided fiscal support for the development of stadium authority property through $20,000,000 in general funds, up to $180,000,000 in revenue bonds, and up to $150,000,000 in general obligation bonds. Recognizing the emergency fiscal situation and economic needs of the State due to the COVID-19 pandemic, your Committee recognizes the need for further flexibility in developing the Stadium Development District for public use.

Your Committee has amended this measure by:

(1) Adding definitions of "district" and "stadium development district" to chapter 109, Hawaii Revised Statutes;

(2) Specifying that should lands that are exempt from the public lands definition and to which the Stadium Authority holds title are no longer needed for stadium and related purposes, those lands shall be returned to the public land trust administered by DLNR;

(3) Broadening the representation of the Stadium Authority by adding two members to consist of one resident each for the areas broadly encompassing:

(A) Aiea and Halawa; and

(B) Foster Village, Crosspointe, and Alii Plantation;

(4) Changing the appropriation to an unspecified amount;

(5) Changing the effective date to July 1, 2050, to encourage further discussion; and

(6) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee notes that the amendments to the composition of the Stadium Authority reflect the contents of H.B. No. 2217, H.D. 1, which was previously heard by your Committee and passed out of the House of Representatives during the Regular Session of 2020.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2940, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2940, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

AARON LING JOHANSON, Chair