STAND. COM. REP. NO. 3060

Honolulu, Hawaii

RE: S.B. No. 3381

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3381, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LAHAINA,"

begs leave to report as follows:

The purpose and intent of this measure is to establish the Lele Community District to facilitate the rebuilding of Lahaina following the destructive wildfire on August 8, 2023.

Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Community Development Authority; Hoomana Pono, LLC; and ten individuals.

Your Committee received written comments in opposition to this measure from two Maui County Council members; Lahaina Strong; Hawaii General Jural Assembly; We Are One, Inc.; Hawaii Alliance For Progressive Action; Maui Chamber of Commerce; Lai Hauola, and numerous individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance; Office of Elections; State Disaster Recovery Coordinator; County of Maui; Kaibigan ng Lahaina; Starn, O'Toole, Marcus and Fisher; and one individual.

Your Committee finds that the community district and board established by this measure are intended to be a model and template for all communities in Hawaii. This model is also intended to instill a strong sense of local self-governance to ensure that the future of Lahaina and other places in the State are controlled by members of those communities, for the benefit of those communities. Your Committee intends that the Lele Community District Board be established to create a path for self-determination by the Lahaina community.

Your Committee requests that the Lele Community District Board integrate the West Maui county plan in designing the master plan for the Lele Community District and establish rules for receiving community input as soon as practicable to ensure that all community voices are heard and accounted for.

Your Committee finds that the Lele Community District Board should have the authority to exercise the power of eminent domain to acquire property interests necessary for the greater public purpose; provided that the power of eminent domain may only be used to achieve the community master plan.

Your Committee further finds that there should be limits on the amounts of campaign donations to community district board candidates in an effort to encourage grassroots and community participation in board elections. Your Committee acknowledges that in the future, access to public financing may become an option if the applicable law is amended to provide for public financing for community board candidates.

Your Committee notes that the Lele Community District may need to be expanded to include communities in North Lahaina.

Accordingly, your Committee has amended this measure by:

(1) Authorizing the Lele Community District Board to exercise the power of eminent domain under limited circumstances;

(2) Establishing a $100 cap during an election period on campaign contributions to a candidate seeking nomination or election to the Lele Community District Board or to a candidate committee;

(3) Making various election requirements applicable to the Lele Community District Board; and

(4) 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. 3381, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3381, 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