STAND. COM. REP. NO. 1346

Honolulu, Hawaii

RE: H.B. No. 1007

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred H.B. No. 1007, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the Hawaii Community Development Authority to cooperate with or assist public and private sector entities to engage in projects that improve the State;

(2) Establish the Transit—Oriented Development Infrastructure Improvement Program under the Hawaii Community Development Authority; and

(3) Repeal the Transit-Oriented Development Infrastructure Improvement District and Board.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Hawaiian Home Lands; Hawaii Community Development Authority; Office of Planning and Sustainable Development; and Oahu Metropolitan Planning Department.

Your Committee finds that transit-oriented development infrastructure improvement districts and boards to oversee the districts were established by the Legislature in 2022 to facilitate and promote transit-oriented development. However, a lack of willing volunteers and administrative issues have made constituting the boards difficult. Given their failure to become functional in the three years since they were established, your Committee further finds that transit-oriented infrastructure improvement district boards are unnecessary and redundant. This measure will enable community infrastructure improvements by streamlining the transit—oriented development infrastructure improvement districts program.

Your Committee also finds that there are many areas of the State, outside of the transit-oriented development infrastructure improvement districts where the Hawaii Community Development Authority (Authority) should be authorized to engage in economic development, redevelopment, and community building.

Your Committee notes that this measure is intended to increase support for the planning, design, and construction of infrastructure improvements across the State. In order to effectively manage the transit-oriented infrastructure improvements, more clarity is necessary. Therefore, this measure needs to be amended to address this issue.

Accordingly, your Committee has amended this measure by:

(1) Adding language to authorize the Authority to issue bonds for the purpose of financing the development of infrastructure for:

(A) Land owned by the Authority or land within a community development district or the stadium development district; and

(B) Transit-oriented development infrastructure projects;

(2) Adding legislative findings stating that there are many areas outside of the Authority's community development districts where the Authority could utilize its powers to facilitate timely redevelopment, renewal, community building, and economic development;

(3) Inserting an unspecified appropriation amount out of the revenue bond proceeds for the Authority to develop infrastructure;

(4) Adding language that requires the Authority to notify the Legislature upon the issuance of any revenue bonds;

(5) Inserting a part II that:

(A) Establishes the Transit-Oriented Community Improvement Partnership (Partnership) within the Hawaii Community Development Authority;

(B) Establishes the Community Improvement Special Fund;

(C) Authorizes the Partnership to issue bonds for the purpose of financing the development of infrastructure;

(D) Requires annual reports to the Legislature;

(E) Appropriates an unspecified amount out of the revenue bond proceeds for the Partnership to develop infrastructure;

(F) Requires the Partnership to notify the Legislature upon the issuance of any revenue bonds; and

(G) Appropriates funds into and out of the Community Improvement Special Fund for the Partnership and positions;

(6) Inserting a severability clause; and

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

As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1007, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1007, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,

________________________________

CHRIS LEE, Chair