STAND. COM. REP. NO. 1079

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 753 
                                        H.D. 2
                                        S.D. 1



Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Transportation and Intergovernmental
Affairs and Economic Development, to which was referred H.B.
No. 753, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE ESTABLISHMENT OF SPECIAL
     IMPROVEMENT DISTRICTS,"

beg leave to report as follows:

     The purpose of this measure is to allow counties to create
special improvement districts for the purpose of providing and
financing supplemental maintenance and security services and
other improvements to promote business activity within the
special improvement districts.

     Testimony in support of this measure was received from the
Department of Business, Economic Development and Tourism, Police
Department of the City and County of Honolulu, Office of the
Managing Director of the City and County of Honolulu, Department
of the Prosecuting Attorney of the City and County of Honolulu,
Land Use Research Foundation of Hawaii, Waikiki Improvement
Association, MacNaughton Group, Hawaii Business Roundtable,
Hawaii Activities and Tours Association, Unity House, Inc.,
Waikiki Neighborhood Board No. 9, Sheraton Princess Kaiulani
Waikiki Hotel, Outrigger Enterprises, Inc., Louis Vuitton, and
two individuals.

     This measure allows a county to levy and assess a special
assessment on property located within a special improvement
district to finance the maintenance and operation of the district

 
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                                   STAND. COM. REP. NO. 1079
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and to pay the debt service on any bonds issued to finance
improvements within the district.  The assessments may be used to
provide supplementary maintenance, services, and improvements,
but not to maintain basic services provided by the county,
including police enforcement.

     Your Committees find that special assessment district
legislation similar to this measure has proven to be very
successful in the economic revitalization of many mainland cities
including Times Square in New York City and the downtown area of
Portland, Oregon.  One positive impact of a special improvement
district is that additional security services can be procured to
create a safer and more attractive environment that will
encourage business activity.  Your Committees further find that
although Waikiki would greatly benefit from a special improvement
district designation, other areas in Hawaii could also benefit as
well.

     Your Committees have amended this measure by clarifying the
language regarding actions or proceedings to object to or
question the validity of ordinances, actions, or proceedings
relating to special improvement districts.

     As affirmed by the record of votes of the members of your
Committees on Transportation and Intergovernmental Affairs and
Economic Development that are attached to this report, your
Committees are in accord with the intent and purpose of H.B.
No. 753, H.D. 2, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as H.B. No. 753,
H.D. 2, S.D. 1, and be referred to the Committee on Ways and
Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Transportation
                                   and Intergovernmental Affairs
                                   and Economic Development,



____________________________       ______________________________
LORRAINE R. INOUYE, Chair          CAL KAWAMOTO, Chair

 
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