STAND. COM. REP. NO. 589

Honolulu, Hawaii

, 2025

RE: H.B. No. 85

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committees on Water & Land and Energy & Environmental Protection, to which was referred H.B. No. 85 entitled:

"A BILL FOR AN ACT RELATING TO THE LAND CONSERVATION FUND,"

beg leave to report as follows:

The purpose of this measure is to remove the annual $5,100,000 cap on the amount of conveyance tax revenues to be paid into the Land Conservation Fund.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources; one member of the Hawai‘i County Council; Kua‘āina Ulu ‘Auamo; Makahanaloa Fishing Association; Hawai‘i Land Trust; Hawai‘i Farmers Union; and numerous individuals. Your Committees received comments on this measure from the Hawai‘i Association of REALTORS and Tax Foundation of Hawaii.

Your Committees find that the Land Conservation Fund was established by Act 156, Session Laws of Hawaii 2005, to create permanent, adequate funding for land conservation. Your Committees further find that the Land Conservation Fund serves a key function in protecting and preserving Hawaii's natural resources by providing funding for the acquisition of lands that are critical to watershed protection, agricultural production, habitation conservation, and cultural preservation. However, your Committees find that there is value in establishing a set maximum cap on the amount of conveyance tax revenue to be transferred into the Land Conservation Fund each fiscal year.

Accordingly, your Committees have amended this measure by:

(1) Changing the conveyance tax revenues to be transferred into the Land Conservation Fund to an unspecified percentage;

(2) Restoring the existing statutory maximum monetary cap on the amount of conveyance tax revenues to be transferred into the Land Conservation Fund and changing that amount to an unspecified amount;

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

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

As affirmed by the records of votes of the members of your Committees on Water & Land and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 85, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 85, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water & Land and Energy & Environmental Protection,

____________________________ NICOLE E. LOWEN, Chair

____________________________ MARK J. HASHEM, Chair