CONFERENCE COMMITTEE REP. NO. 235

Honolulu, Hawaii

, 2025

RE: H.B. No. 422

H.D. 1

S.D. 2

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 422, H.D. 1, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Repeal the construction cost component of school impact fees;

(2) Exempt additional projects from school impact fees, including certain affordable, government, and Hawaiian home lands developments and single-room dwellings;

(3) Increase the minimum number of units in a development to trigger land dedication provisions of the land component impact fee; and

(4) Require the School Facilities Authority to adopt rules governing fee collection and report to the Legislature on the benefits and impacts of this measure.

Your Committee on Conference has amended this measure by:

(1) Making conforming amendments to delete certain definitions no longer used;

(2) Repealing the requirement for new residential units with less than fifty units to include a written agreement relating to a time specified for payment of a fee in lieu;

(3) Expanding prohibited uses of fee in lieu land dedication funds;

(4) Clarifying that any educational contribution agreement executed with the Department of Education or School Facilities Authority before the effective date of this measure shall remain in effect unless mutually terminated or renegotiated;

(5) Clarifying that this measure applies to new residential developments permitted or approved on or before June 30, 2029;

(6) Changing the effective date to upon approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 422, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 422, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ STANLEY CHANG Chair	____________________________ LUKE A. EVSLIN Co-Chair
____________________________ DONNA MERCADO KIM Co-Chair	____________________________ TYSON K. MIYAKE Co-Chair
____________________________ MICHELLE N. KIDANI Co-Chair