STAND. COM. REP. NO. 337

Honolulu, Hawaii

, 2005

RE: S.B. No. 919

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 919 entitled:

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

begs leave to report as follows:

The purpose of this measure is to provide a better funding mechanism for the natural area reserves system by increasing the conveyance tax and the amount of conveyance tax revenues paid into the general, rental housing trust, and natural area reserve funds.

Testimony in support of this measure was submitted by the Office of Hawaiian Affairs, City and County of Honolulu Board of Water Supply, Conservation Council for Hawai'i, Hawaii's Thousand Friends, Ko'olau Mountains Watershed Partnership, the Nature Conservancy, Rocky Mountain Institute, Sierra Club, the Trust for Public Land, and twenty individuals.

Testimony in opposition to this measure was submitted by the Department of Land and Natural Resources, Cendant, Hawaii Association of Realtors, and Land Use Research Foundation of Hawaii. Comments were also submitted by the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that Hawaii's natural resources are vital to the State's economy, culture, and quality of life. However, there is very little funding allocated to protect and manage Hawaii's precious natural and cultural assets. Thus, this measure provides a better-equipped funding mechanism for the natural area reserves system.

Your Committee also noted that there were concerns regarding the conveyance tax increases. Specifically, conveyance tax revenues are one of the least dependable sources for funding because it relies on real estate transactions. Thus, your Committee requests the Committee on Ways and Means to evaluate the potential benefits or impacts of applying a sliding scale conveyance tax percentage to real estate transactions.

Your Committee has amended this measure by making technical, nonsubstantive changes.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 919, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 919, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,

____________________________

RUSSELL S. KOKUBUN, Chair