STAND. COM. REP. NO. 711

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 141

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 141, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO LAND-SECURED FINANCING,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to expand the authority of counties to use land-based financing to support operating costs attributable to developments in improvement districts and community facilities districts.

 

     Your Committee received written comments in support of this measure from David Z. Arakawa, Land Use Research Foundation of Hawaii.

 

     Your Committee finds that land-secured financing provides an opportunity for the counties to support development-related operating costs, such as police, fire protection, and maintenance services.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying that the counties are authorized to use improvement district assessments and community facilities district special tax assessments for both new and existing developments in improvement districts and community facilities districts, respectively;

 

     (2)  Changing the percentages of assessments or tax revenues that a county may apply to administrative expenses to an unspecified percentage;

 

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the issue; and

 

     (4)  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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 141, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 141, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair