STAND. COM. REP. NO. 170

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 141

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred S.B. No. 141 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, among other things:

 

     (1)  Enumerate the types of county services that may be provided within and financed by an Improvement District or Community Facilities District; and

 

     (2)  Clarify the uses of improvement district assessments and community facilities district special taxes.

 

     Your Committee received testimony in support of this measure from one county department.

 

     The intent of your Committee is to expand the authority of counties to use land-based financing to support their operating costs due to new development in improvement districts and community facilities districts.

 

     Your Committee finds that with budgets tightening, the counties are finding it more difficult to support their annual operating costs.  In some jurisdictions, the use of land-secured financing has been used by various government agencies to fund infrastructure and other improvements.  Your Committee further finds that land-secured financing provides an opportunity for the counties to support new development-related operating costs, such as police, fire protection, and maintenance services, in addition to special improvements and infrastructure. 

 

     Your Committee has amended this measure by:

 

(1)  Adding county maintenance of the capital improvements to be land-based financed;

 

(2)  Authorizing the counties to use up to five percent of the assessment or special tax to cover administrative expenses in creating and administering the district and the associated assessments, fees, and taxes; and

 

(3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 141, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 141, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,

 

 

 

____________________________

WILL ESPERO, Chair