STAND. COM. REP. NO. 3906

Honolulu, Hawaii

RE: H.B. No. 1672

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred H.B. No. 1672, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL IMPROVEMENT DISTRICTS,"

beg leave to report as follows:

The purpose and intent of this measure is to expand the purpose and rationale for which counties may create special improvement districts to include environmental research, restoration, and maintenance; natural resource management; and natural hazard mitigation to improve environmental conditions and provide community benefits.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources; University of Hawai‘i System; Waikīkī Beach Special Improvement District Association; Surfrider Foundation, O‘ahu Chapter; and two individuals.

Your Committees find that Act 107, Session Laws of Hawaii 1999 (Act 107), authorized the counties to create special improvement districts for the purpose of restoring or promoting business activity. Since the enactment of Act 107, the needs and demands in these districts have broadened to include the management or mitigation of environmental and other conditions that impact natural resources. There is concern to the State due to its exposure to a variety of threats that impact its environment and ecosystems, including coastal hazards and effects of climate change, such as the increase in the frequency and severity of storms and drought, sea-level rise, groundwater inundation, and coastal erosion. Therefore, this measure allows the counties to establish special improvement districts for environmental protection and preservation, natural resource management, and natural hazard mitigation.

Your Committees have amended this measure by:

(1) Clarifying that any county having a charter may enact an ordinance, and may amend the same from time to time, authorizing the creation of special improvement districts for the purpose of providing, financing, and coordinating federal, state, and county efforts to engage in the various purposes; and

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

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1672, H.D. 1, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 1672, H.D. 1, S.D. 2.

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

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair