STAND. COM. REP. NO. 1126

Honolulu, Hawaii

RE: S.B. No. 874

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 874 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to exempt various forms of housing development from the imposition of school impact fees.

Your Committee received written comments in support of this measure from the Hawaii Public Housing Authority, NAIOP Hawaii, Ikenakea Development, HNL Development, and four individuals.

Your Committee received written comments in opposition to this measure from the Center for Hawaiian Sovereignty Studies.

Your Committee received written comments on this measure from the Department of Education, School Facilities Authority, and Tax Foundation of Hawaii.

Your Committee finds that school impact fees contribute to the cost of constructing housing projects. Exempting certain housing projects from school impact fees will help to streamline construction and ensure that all funding for a project is focused on building housing for local families.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 874, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 874, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair