STAND. COM. REP. NO. 2143-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3218

S.D. 2

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Finance, to which was referred S.B. No. 3218, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BONDS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Substitute the phrase "tax increment" with "housing infrastructure growth" for purposes of the Housing Infrastructure Growth Financing Act, except under certain circumstances; and

(2) Allow the counties to exclude housing infrastructure growth bonds from the debt limit of the counties, upon the ratification of a constitutional amendment expressly providing that the Legislature may authorize the counties to issue housing infrastructure growth bonds and exclude those bonds from determinations of the counties' funded debt.

Your Committee received testimony in support of this measure from the Office of Planning and Sustainable Development; Stadium Authority; Hawaii Housing Finance and Development Corporation; Hawaiʻi Community Development Authority; Hawaii Public Housing Authority; Mayor of the County of Kauaʻi; one member of the Kauaʻi County Council; one member of the Maui County Council; one member of the Hawaiʻi County Council; Department of Budget and Fiscal Services of the City and County of Honolulu; Hawaiʻi State Association of Counties; Hawaii Regional Council of Carpenters; Hawaiʻi Association of REALTORS; Land Use Research Foundation of Hawaii; Castle & Cooke Homes Hawaiʻi, Inc.; Avalon Group; D.R. Horton Hawaii; and Pacific Resource Partnership.

Your Committee has amended this measure by:

(1) Changing all references of "housing infrastructure growth" to "resilient infrastructure for shelter and equity"; 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3218, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3218, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

CHRIS TODD, Chair