STAND. COM. REP. NO.  1529


Honolulu, Hawaii

                , 2015


RE:   S.B. No. 544

      S.D. 1

      H.D. 1





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 544, S.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure as received by your Committee, is to provide funding for natural resource management by appropriating moneys for projects relating to watershed management plans; fire, natural disaster, and emergency response equipment; and forest and outdoor recreation improvements.

     For the purposes of a public hearing on this bill, your Committee circulated S.B. No. 544, H.D. 1 (Proposed Draft), and notified the public that it would be accepting testimony on the Proposed Draft.  The purpose of the Proposed Draft is to rejuvenate areas that have become dilapidated, obsolete, or deteriorated in the Kanoelehua Industrial Area (Area) on the island of Hawaii by:


(1)  Establishing a four-year Kanoelehua Redevelopment Pilot Project to enable the Department of Land and Natural Resources to:


(A)  Define policies for the management of public lands in the Area;


(B)  Establish a plan for the designated redevelopment district in the Area, including district-wide improvements; and


(C)  Implement asset and property management concepts to optimize income;


(2)  Requiring the Board of Land and Natural Resources Chairperson to establish a planning committee for the Area to prepare a redevelopment plan for the designated redevelopment district;


(3)  Requiring reports to the Legislature from:


(A)  The Department of Land and Natural Resources on the progress and final findings of the pilot project; and


(B)  The Legislative Reference Bureau on their findings based upon a review of commercial leases and the Legislative Reference Bureau's recommended changes to state leasing law; and


(4)  Appropriating funds.


     The Land Use Research Foundation of Hawaii, Hawaii Green Growth, Kanoelehua Industrial Area Association, and an individual provided testimony in support of this measure.  The Department of Land and Natural Resources provided testimony in opposition.  The Legislative Reference Bureau provided comments.


     Your Committee considered the merits of both S.B. No. 544, S.D. 1, as received by your Committee, and the Proposed Draft and upon careful consideration, adopted the Proposed Draft.  Your Committee further amended the Proposed Draft by:


     (1)  Clarifying that the scope of the Kanoelehua Redevelopment Pilot Project is limited only to public lands in the Kanoelehua industrial area and adjacent public lands in South Hilo;


     (2)  Changing the effective date to July 1, 2030, to encourage further discussion; and


     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 544, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 544, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.


Respectfully submitted on behalf of the members of the Committee on Finance,