STAND. COM. REP. NO.  1472-16


Honolulu, Hawaii

                , 2016


RE:   S.B. No. 2731

      S.D. 1

      H.D. 1




Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 2731, S.D. 1, H.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to help address the need for school infrastructure amid the construction of new housing units by:


     (1)  Clarifying that if a new residential development within a designated school impact district requires a county subdivision approval, county building permit, or condominium property regime approval, then the developer must also fulfill certain impact fee requirements of the Department of Education, even if the projects are processed pursuant to section 46-15.1, Hawaii Revised Statutes, or section 201H-38, Hawaii Revised Statutes, with the involvement of the Hawaii Housing Finance and Development Corporation or a corresponding county agency; and


     (2)  Providing that, in urban Honolulu, fee in lieu funds may be used to purchase completed construction, construct new school facilities, improve or renovate existing structures for school use, or lease land or facilities for school use.


     The Hawaii Housing Finance and Development Corporation and Department of Education testified in support of this measure.  The Chamber of Commerce Hawaii and Building Industry Association of Hawaii testified in opposition to this measure.  The Hawaii State Teachers Association provided comments.


     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. 2731, S.D. 1, H.D. 1, and recommends that it pass Third Reading.


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