STAND. COM. REP. NO. 968

Honolulu, Hawaii

RE: S.B. No. 468

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 468 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to repeal the school impact fee exemptions for developments that are or will be subject to the transient accommodations tax or that are nonresidential.

Your Committees received written comments in support of this measure from one individual.

Your Committees received testimony in opposition to this measure from the Land Use Research Foundation of Hawaii.

Your Committees received comments on this measure from Department of Education and Tax Foundation of Hawaii.

Your Committees find that expanding the use of construction cost component impact fees along with separating the expenditure plan of school impact fees from the Department of Education's annual budget process will help to provide the Department with the flexibility to more efficiently address the needs of each school impact district.

Your Committees have amended this measure by:

(1) Authorizing the Department of Education to expend construction cost component impact fees for the improvement or renovation of existing structures for school use;

(2) Repealing the requirement that an expenditure plan for all collected impact fees be incorporated into the Department of Education's annual budget process; and

(3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 468, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 468, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair