STAND. COM. REP. NO. 710

Honolulu, Hawaii

, 2025

RE: H.B. No. 743

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 Water & Land, to which was referred H.B. No. 743 entitled:

"A BILL FOR AN ACT RELATING TO FISCAL SUSTAINABILITY,"

begs leave to report as follows:

The purpose of this measure is to require the Office of Planning and Sustainable Development to develop a model that assesses the fiscal impact of land use development projects and regional infrastructure investments.

Your Committee received testimony in support of this measure from the Hawaiʻi Appleseed Center for Law & Economic Justice; Housing Hawaiʻi's Future; and three individuals. Your Committee received comments on this measure from the Department of Taxation and Office of Planning and Sustainable Development.

Your Committee finds that fiscal impact modeling is a means of analyzing the long-term financial effects of land use decisions on government revenues and expenditures. Your Committee further finds that a fiscal impact assessment tool could be used by the counties or state agencies to evaluate whether development proposals or regional land use patterns positively contribute to the ongoing operational, maintenance, and replacement costs of public infrastructure, facilities, and services required to support development.

Your Committee has amended this measure by:

(1) Authorizing a designee of the Director of Taxation to serve in place of the Director as a member of the steering committee to advise on the development of the model;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

(3) 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 Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 743, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 743, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair