STAND. COM. REP. NO. 2375

Honolulu, Hawaii

RE: S.B. No. 2922

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 Housing and Government Operations, to which was referred S.B. No. 2922 entitled:

"A BILL FOR AN ACT RELATING TO RURAL DISTRICTS,"

beg leave to report as follows:

The purpose and intent of this measure is to authorize the counties to adopt ordinances that allow up to one dwelling per quarter-acre in rural districts.

Your Committees received testimony in support of this measure from the Planning Department of the County of Hawai‘i, Hawai‘i Association of REALTORS, and one individual. Your Committees received comments on this measure from the Office of Planning and Sustainable Development and the Department of Agriculture.

Your Committees find that the State faces a severe shortage of housing. Allowing counties to increase density in rural districts offers a mechanism for providing more housing at lower costs. However, it is also important that the State avoid urban and suburban sprawl to the extent possible. This measure authorizes counties to increase density and rural areas but also highlights the need for greater understanding of the potential for urban and suburban sprawl. Your Committees received testimony from the Office of Planning and Sustainable Development, which noted that S.B. No. 2766, Regular Session of 2022, proposes that the Office of Planning and Sustainable Development perform a study that aligns with the purpose and intent of this measure.

Accordingly, your Committees have amended this measure by:

(1) Incorporating the contents of S.B. No. 2766, which:

(A) Directs the Office of Planning and Sustainable Development to conduct a study of rural district land use laws;

(B) Directs the Office Planning and Sustainable Development to coordinate with other departments and agencies, and community stakeholders to conduct the study;

(C) Requires the Office of Planning and Sustainable Development to report to the Legislature on its findings and recommendations; and

(D) Appropriates funds to the Department of Business, Economic Development, and Tourism; and

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

As affirmed by the records of votes of the members of your Committees on Housing and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2922, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2922, S.D. 1, and be referred to your Committees on Ways and Means and Water and Land.

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

________________________________ SHARON MORIWAKI, Chair

________________________________ STANLEY CHANG, Chair