STAND. COM. REP. NO. 3210

Honolulu, Hawaii

RE: S.B. No. 3334

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Education and Ways and Means, to which was referred S.B. No. 3334, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Add the Director of Business, Economic Development, and Tourism (DBEDT) as an ex officio voting member to the Board of Directors of the:

(A) Hawaii Tourism Authority;

(B) Stadium Authority; and

(C) School Facilities Authority;

(2) Transfer the Stadium Authority from the Department of Accounting and General Services (DAGS) to DBEDT, which includes:

(A) Clarifying that the designees of the President of the University of Hawaii and the Superintendent of Education may serve as ex officio nonvoting members of the Stadium Authority; and

(B) Increasing the amount in general obligation bonds that may be issued for the Stadium Development District; and

(3) Transfer the School Facilities Authority from the Department of Education to DBEDT.

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

Your Committees find that certain agencies with land development functions are fragmented and disbursed throughout the State's executive branch. This can lead to ineffective or inefficient development and redevelopment of state lands. Your Committees find that now, more than ever, smart, creative, and efficient uses of state lands and associated resources are crucial. Projects are in the pipeline and resources are ready to be deployed. Accordingly, this measure will improve the operation of state government and benefit the public by consolidating land development expertise within DBEDT.

Your Committees have amended this measure by:

(1) Amending section 1 to reflect its amended purpose;

(2) Amending two sections of chapter 109, Hawaii Revised Statutes, to clarify the subject of Stadium Authority management;

(3) Amending various sections of chapter 206E, Hawaii Revised Statutes, by:

(A) Amending the Hawaii Community Development Authority membership to include the Chairperson of the Board of Land and Natural Resources; Director of Business, Economic Development, and Tourism; and Director of the Office of Planning and Permitting of each county, or their designee, in which a community development district is located;

(B) Amending the community representatives on each community development district board from three to two at-large members;

(C) Clarifying the subject of Stadium Authority management and the extent of its authority; and

(D) Making certain conforming amendments;

(4) Making the effectiveness of this measure contingent on the completion of the land acquisition set forth by Act 40, Session Laws of Hawaii 2019, and Act 6, Session Laws of Hawaii 2020;

(5) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Education and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3334, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 3334, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Education and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ MICHELLE N. KIDANI, Chair