STAND. COM. REP. NO. 442

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1166

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committees on Water and Land and Energy and Environment, to which was referred S.B. No. 1166 entitled:

 

"A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to increase the conveyance tax on certain real estate transactions and to direct an additional ten percent of conveyance tax proceeds to the natural area reserve fund for watershed protection and invasive species control.

 

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Department of Taxation, The Trust for Public Land, Hawaii Appleseed Law and Economic Justice, Coordinating Group on Alien Pests Species, Catholic Charities Hawaii, Conservation Council for Hawaii, The Nature Conservancy, Hawaii Green Growth Initiative, and nine individuals.  Your Committees received testimony in opposition to this measure from The Chamber of Commerce of Hawaii, Hawaii Association of REALTORS, NAIOP Commercial and Real Estate Development Association, Building Industry Association-Hawaii, Animal Rights Hawaii, and two individuals.

 

     Your Committees find that the development, sale, and improvement of real estate in Hawaii puts additional pressure on watersheds, Hawaii's water resources, and watershed recharge areas.  Over the years, enormous amounts have been invested in the development and sale of real estate in Hawaii, and continued investment in real estate sales and development is helping to lift the economy out of recession.  Yet, a comparatively minor investment in protecting the natural resources could also drive the economy and provide economic benefits.  While watershed protection is one of many authorized beneficiaries of the natural area reserve fund, additional funding is needed as Hawaii's watershed health declines.

 

     Your Committees further find that over half of Hawaii's watersheds have been lost and immediate action is needed to secure Hawaii's water supply.  Hotter, drier conditions and damaged watershed forests are escalating the costs and conflicts over water.  Protecting forest watersheds is a very cost effective and efficient way to absorb rainwater and replenish ground water.  Your Committees believe that it makes sense to spend a portion of conveyance tax revenue on protecting these natural resources.

 

     As affirmed by the records of votes of the members of your Committees on Water and Land and Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1166 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Water and Land and Energy and Environment,

 

____________________________

MIKE GABBARD, Chair

 

____________________________

MALAMA SOLOMON, Chair