STAND. COM. REP. NO. 392

Honolulu, Hawaii

, 2023

RE: H.B. No. 567

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 567, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HAWAIIAN HOME LANDS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Exempt developments for the Department of Hawaiian Home Lands from general excise taxes;

(2) Make permanent the exemption of certain housing developed by the Department of Hawaiian Home Lands from school impact fee requirements;

(3) Ensure that the $600,000,000 appropriated to the Department of Hawaiian Home Lands in Act 279, Session Laws of Hawaii 2022, is available for expenditure until June 30, 2025; and

(4) Make permanent the issuance of county affordable housing credits to the Department of Hawaiian Home Lands.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands; one member of the Kaua‘i County Council; Dowling Company, Inc.; and one individual. Your Committee received testimony in opposition to this measure from the Center for Hawaiian Sovereignty Studies. Your Committee received comments on this measure from the Department of Taxation, Department of Education, School Facilities Authority, Office of Housing and Community Development of the County of Hawai‘i, Tax Foundation of Hawaii, and Land Use Research Foundation of Hawaii.

Your Committee finds that this measure will ensure that the Department of Hawaiian Home Lands has the necessary resources to serve its native Hawaiian beneficiaries, including through the development of necessary housing.

Your Committee has amended this measure by:

(1) Amending the eligibility requirements and definitions for the general excise tax exemption; and

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

As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 567, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 567, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,

____________________________

DAVID A. TARNAS, Chair