STAND. COM. REP. NO. 2233

Honolulu, Hawaii

RE: S.B. No. 3213

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Hawaiian Affairs and Housing, to which was referred S.B. No. 3213 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to require that one percent of the transient accommodations tax be allocated to the Department of Hawaiian Home Lands for the purposes of building affordable housing for individuals on the Department of Hawaiian Home Lands waiting list.

Your Committees received testimony in support of this measure from Hoʻomana Pono, LLC and seven individuals.

Your Committees received testimony in opposition to this measure from two individuals.

Your Committees received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.

Your Committees find that in fulfilling its obligation to native Hawaiians, the Department of Hawaiian Home Lands has largely focused on developing single-family homes. With rising housing costs and more than forty thousand applicants on a waiting list for available housing opportunities, the Department of Hawaiian Home Lands must expand its ability to develop not only single-family homes, but also multi-family homes, rental and transitional units, and other alternative housing options for individuals currently on the waiting list, to meet the needs of the State's native Hawaiian population. This measure seeks to fund this endeavor by requiring that one percent of the transient accommodations tax be allocated to the Department of Hawaiian Home Lands for the purposes of building affordable housing for individuals on the Department of Hawaiian Home Lands waiting list.

Your Committees note the concerns raised by the Department of Budget and Finance and Tax Foundation of Hawaii, including the concerns about the earmark and concerns that the bill does not specify where the allocated funds shall be deposited, nor does it provide an appropriation to the Department of Hawaiian Home Lands to expend the funds. Your Committees respectfully request that these concerns be considered by subsequent committees as this measure progresses through the legislative process.

As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3213 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Hawaiian Affairs and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ MAILE S.L. SHIMABUKURO, Chair