STAND. COM. REP. NO. 943

Honolulu, Hawaii

RE: S.B. No. 494

S.D. 2

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. 494, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO VACANT AND ABANDONED RESIDENTIAL PROPERTY,"

begs leave to report as follows:

The purpose and intent of this measure is to address the potential hazards associated with vacant and abandoned residential properties.

Specifically, this measure:

(1) Requires each county to establish an expedited procedure for approvals of demolition permits for vacant residential properties; and

(2) Allows the Department of Taxation to seek nonjudicial foreclosure sales of vacant and abandoned residential properties with outstanding recorded state tax liens.

Your Committee received written comments in support of this measure from one individual.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that vacant and abandoned residential properties pose significant public safety hazards and may lead to a decline in values of surrounding properties and a reduction in the tax base for local governments.

Your Committee has amended this measure by:

(1) Inserting an appropriation to fulfill the State's share of any mandated costs to the counties pursuant to Article VIII, section 5, of the Hawaii State Constitution; and

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

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. 494, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 494, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair