STAND. COM. REP. NO. 2416

Honolulu, Hawaii

RE: S.B. No. 2725

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Water and Land and Government Operations, to which was referred S.B. No. 2725 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:

(1) 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

(2) Provide community benefits.

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources; University of Hawai‘i Sea Grant College Program, Climate Resiliency Initiative; and Waikīkī Beach Special Improvement District Association. Your Committees received comments from the Hawai‘i Emergency Management Agency.

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. As Hawaii is exposed 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, there is concern to the State due to its island topography and substantial coastal exposure.

Your Committees have also heard the concerns from the Department of Land and Natural Resources regarding climate change and hazard mitigation. As climate change and sea-level rise impacts may impact communities, enabling communities to utilize special improvement districts for improving resilience and environmental conditions may mitigate some potential effects. The Department of Land and Natural Resources continues to address impacts related to coastal erosion and beach loss in Hawaii through beach restoration and management projects, making the Department a key resource to the State's development of creative and community-engaged projects and policies to support restoration and adaption projects.

Therefore, your Committees have amended this measure by:

(1) Including climate change and hazard mitigation among eligible purposes for the creation of special improvement districts; and

(2) Inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Water and Land and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2725, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2725, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water and Land and Government Operations,

________________________________ SHARON MORIWAKI, Chair

________________________________ LORRAINE R. INOUYE, Chair