STAND. COM. REP. NO. 119

Honolulu, Hawaii

, 2025

RE: H.B. No. 330

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Education, to which was referred H.B. No. 330 entitled:

"A BILL FOR AN ACT RELATING TO SCHOOL IMPACT FEES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Place oversight of the School Impact Fee Program's governance structure under the School Facilities Authority Board; and

(2) Allow the School Facilities Authority Board to dissolve a school impact district without a public hearing.

Your Committee received testimony in support of this measure from Hawaiʻi YIMBY. Your Committee received testimony in support of the intent of this measure from the School Facilities Authority and Hawaii Appleseed Center for Law & Economic Justice. Your Committee received comments on this measure from the Department of Education; Tax Foundation of Hawaii; and Grassroot Institute of Hawaii.

Your Committee finds that the existing governance structure of the School Impact Fee Program is misaligned. As the School Facilities Authority is currently responsible for administering the program, your Committee believes that it is appropriate that the School Facilities Authority Board be the governing entity overseeing the school impact fee program rather than the Board of Education.

Your Committee has amended this measure by:

(1) Deleting language that would have authorized the School Facilities Authority Board to dissolve a school impact district without a public hearing;

(2) Directing the School Facilities Authority Board to carry out the processes and procedures conducted by the Board of Education to dissolve a school impact district upon the transfer of oversight of the School Impact Fee Program;

(3) Changing the effective date to July 1, 3000; and

(4) 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 Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 330, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 330, H.D. 1, and be referred to your Committee on Housing.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

JUSTIN H. WOODSON, Chair