STAND. COM. REP. NO. 938

Honolulu, Hawaii

, 2025

RE: H.B. No. 422

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 Finance, to which was referred H.B. No. 422, H.D. 1, 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) Repeal School Impact Fees; and

(2) Abolish and transfer unencumbered balances of the School Impact Fee subaccounts and certain Fair Share Contribution accounts to the School Facilities Special Fund.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands; Hawaii Public Housing Authority; Office of Housing of the City and County of Honolulu; Hawaiʻi YIMBY; Hawaii Appleseed Center for Law & Economic Justice; Grassroot Institute of Hawaii; Libertarian Party of Hawaii; Land Use Research Foundation of Hawaii; and one individual. Your Committee received testimony in opposition to this measure from HI Good Neighbor and numerous individuals. Your Committee received comments on this measure from the Department of Education; School Facilities Authority; Tax Foundation of Hawaii; and LIMBY Hawaiʻi.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 422, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

KYLE T. YAMASHITA, Chair