STAND. COM. REP. NO. 563-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2470

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 2470 entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT OPERATIONS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Director of Business, Economic Development, and Tourism, or the Director's designee, as an ex-officio, voting member of the Hawaii Tourism Authority, Stadium Authority, and School Facilities;

(2) Transfer the Stadium Authority and School Facilities Authority from the Department of Accounting and General Services and Department of Education, respectively, to the Department of Business, Economic Development, and Tourism;

(3) Repeal the Stadium Development Special Fund's exemption from the departmental administrative expenses assessment; and

(4) Increase the amount of general obligation bonds issued for the Stadium Development District.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism and University of Hawai‘i System. Your Committee received comments on this measure from the Department of Education, Department of Accounting and General Services, Stadium Authority, Hawai‘i Tourism Authority, and School Facilities Authority.

Your Committee finds that the effective and efficient development and redevelopment of state lands is an important priority. However, your Committee further finds that expertise with land development is currently spread across various state departments and agencies, which causes discrepancies in the State's plan to efficiently utilize state lands for Hawaii residents. Your Committee notes that the Stadium Authority and School Facilities Authority, both responsible for the development of certain state lands, are currently in the Department of Accounting and General Services and Department of Education, respectively. Your Committee believes that centralizing the State's land development functions within a single department will better ensure that all state lands are being properly utilized.

Your Committee has amended this measure by:

(1) Amending the composition of the Stadium Authority by:

(A) Increasing the number of members from eleven to thirteen;

(B) Specifying that two of the ten appointed members shall represent and be residents of Aiea and west Honolulu, respectively; and

(C) Specifying that the Director of the Department of Business, Economic Development, and Tourism; President of the University of Hawaii; and Superintendent of Education, or their designees, shall be ex-officio, non-voting members;

(2) Changing the effective date to October 18, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2470, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2470, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

SEAN QUINLAN, Chair