STAND. COM. REP. NO. 602

Honolulu, Hawaii

RE: S.B. No. 1423

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1423, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to provide the necessary powers, appropriations, and guidance to ensure optimal development of the Stadium Development District as intended by Act 268, Session Laws of Hawaii 2019, which established the Stadium Development District.

Specifically, this measure:

(1) Establishes the stadium development district special fund;

(2) Revises the general development guidance policies of the Stadium Development District and clarifies the respective roles of the Stadium Authority and Hawaii Community Development Authority in the development of the Stadium Development District;

(3) Broadens the powers and duties of the Stadium Authority, including authorizing the Stadium Authority to acquire and hold title to real property;

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

(5) Authorizes the Hawaii Community Development Authority, with approval from the Governor, to delegate implementation of capital improvement projects to other state agencies, under certain conditions;

(6) Adds two members to the Stadium Authority; and

(7) Makes public the financial disclosures of members of the Stadium Authority, pursuant to section 84‑17(d), Hawaii Revised Statutes.

Your Committee received written comments in support of this measure from the Department of Accounting and General Services, Stadium Authority, Chamber of Commerce Hawaii, and BIA Hawaii.

Your Committee received written comments on this measure from the Department of Budget and Finance, League of Women Voters, Hawaii Community Development Authority, and one individual.

Your Committee finds that the State has the potential to establish the Stadium Development District as a premier destination for sports and events and a vital center for residential housing, retail, and other transit-oriented development. Your Committee also finds that this measure clarifies the roles and responsibilities of all agencies involved in the development of the Stadium Development District and provides a basis to advance the progress of the Stadium Development District.

Your Committee has amended this measure by:

(1) Establishing the stadium development special fund under Chapter 109, Hawaii Revised Statutes, instead of Chapter 206E, Hawaii Revised Statutes, into which all funds collected by the Stadium Authority after the effective date of the measure shall be deposited;

(2) Authorizing the Stadium Authority to continue to encumber and expend any moneys that were deposited into the stadium special fund prior to the effective date of the measure until the remaining balance of the stadium special fund is depleted;

(3) Providing for the closure of the stadium special fund after all remaining moneys in the stadium special fund are depleted;

(4) Making the Stadium Authority, rather than the Hawaii Community Development Authority, the expending agency for the appropriation of general obligation bond proceeds;

(5) Providing for the continued expenditure by the Stadium Authority of general obligation bond proceeds previously appropriated by Act 268, Session Laws of Hawaii 2019, as amended by Act 4, Session Laws of Hawaii 2020;

(6) Authorizing the Hawaii Community Development Authority to use its special facilities powers under part VI of Chapter 206E, Hawaii Revised Statutes, to assist in the development of projects under the control of other public agencies;

(7) Requiring the Stadium Authority and Hawaii Community Development Authority to enter into a memorandum of agreement regarding the implementation responsibilities of the respective agencies;

(8) Making the appropriation of general obligation bond proceeds for fiscal year 2021-2022 effective on July 1, 2021; and

(9) Making technical nonsubstantive changes for purposes of clarity, consistency, 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. 1423,

S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1423, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair