STAND. COM. REP. NO.247

Honolulu, Hawaii

, 2003

RE: S.B. No. 1517

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred S.B. No. 1517 entitled:

"A BILL FOR AN ACT RELATING TO ENVIRONMENTAL PROTECTION,"

begs leave to report as follows:

The purpose of this measure is to increase the conveyance tax and raise the allocation of conveyance tax revenues to the Rental Housing Trust Fund and the Natural Area Reserve Fund from the existing twenty-five per cent per fund allocation to thirty-five per cent per fund.

Testimony in support of this measure was submitted by KAHEA: The Hawaiian-Environmental Alliance, Hawaii's Thousand Friends, The Nature Conservancy of Hawaii, Na Leo Pohai, Maui Invasive Species Committee, Conservation Council for Hawaii, the Sierra Club, 'Ilio'ulaokalani Coalition, the Hawaii Audubon Society, and four individuals. The Board of Land and Natural Resources provided testimony in support of the intent of this measure. Hawaii Association of Realtors submitted testimony opposing this measure. The Department of Taxation and Tax Foundation of Hawaii submitted comments on this measure.

The measure also requires that funds in the Natural Area Reserve fund also be used for the management of natural area reserves and an early detection and rapid response program for invasive species.

Your Committee finds that there is a direct relationship between the development and urbanization of land and the need to protect natural areas and watersheds. The legislature has already determined that the conveyance tax is an appropriate means to fund the conservation of natural resources on private land by dedicating 25 per cent of the current tax to the natural area partnership program and forest stewardship program. However, such dedicated funding has not been provided for the Natural Area Reserve System on state land.

Your Committee has amended this measure by limiting the conveyance tax allocation increase to transfers or conveyances of realty with a value of $400,000 or greater. Your Committee notes that the conveyance tax allocation increase shall apply to the total taxable amount at or above $400,000 and not limited to amounts up to $400,000.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1517, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1517, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

J. KALANI ENGLISH, Chair