STAND. COM. REP. NO. 476

Honolulu, Hawaii

RE: S.B. No. 662

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Housing, to which was referred S.B. No. 662 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Hawaii Housing Finance and Development Corporation (HHFDC) to transfer the public roads of the Villages of Kapolei to the City and County of Honolulu by January 1, 2026; and

(2) Authorize county police officers to enforce the statewide traffic code on all public streets, roadways, and highways within the State.

Your Committee received testimony in support of this measure from the Hawaii Housing Finance and Development Corporation, Office of the Mayor of the City and County of Honolulu, and one individual.

Your Committee finds that the City and County of Honolulu has refused dedication of the roads connecting the Villages of Kapolei. These improvements were constructed by HHFDC's predecessor over thirty years ago and continue to be the responsibility of HHFDC. HHFDC is required to maintain the roads at a cost of $1,000,000 per year out of the Dwelling Unit Revolving Fund without commensurate revenue to maintain the roadways, despite the county benefiting from the revenue generated by the improvements. Therefore, this measure offers a solution to ownership of the roadways and enables HHFDC to spend its funds for the continued development of affordable housing units statewide.

Your Committee notes that HHFDC and the City and County of Honolulu have been in active negotiations regarding the dedication of road infrastructure connecting the Villages of Kapolei. While the negotiations have produced a reasonable agreement for road dedication, negotiations have halted due to pending legislation. Your Committee further notes that if pending legislation does not move forward, both parties have committed to resuming negotiations to ensure a solution amenable to all. Therefore, this measure serves as an incentive for the parties to swiftly conclude the dedication and produce a solution for the people of Kapolei.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 662, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 662, S.D. 1, and be referred to your Committee on Ways and Means.

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

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STANLEY CHANG, Chair