Honolulu, Hawaii

, 2021


RE: H.B. No. 467

H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii




Your Committee on Finance, to which was referred H.B. No. 467, H.D. 1, entitled:




begs leave to report as follows:


The purpose of this measure is to redevelop certain areas or regions of public lands by:


(1) Establishing a framework to identify and redevelop areas of public lands that are classified as commercial, industrial, hotel, apartment, motel, or resort parcels in need of revitalization;


(2) Creating a nine-member planning committee for each redevelopment district to provide policy direction and prepare a redevelopment plan;


(3) Establishing a revolving fund for each redevelopment district for deposit of fifty percent of the revenues, income, and receipts from the public lands in the redevelopment district, legislative appropriations, gifts, grants, and other funds;


(4) Creating the Waiakea Peninsula Redevelopment District on the island of Hawaii, Waiakea Peninsula Redevelopment District Planning Committee, and Waiakea Peninsula Redevelopment District Revolving Fund;


(5) Authorizing the Board of Land and Natural Resources to approve rental reductions or waivers for leases that require substantial demolition costs or infrastructure improvement costs in order for the lessee to utilize the premises;


(6) Authorizing a local redevelopment agency to negotiate a development agreement with a developer for commercial, business, hotel, or resort uses on public lands within a redevelopment area;


(7) Providing that the general excise tax laws do not apply to amounts received from the construction of work or improvements of a redevelopment project; and


(8) Amending the definition of "use" under use tax laws to exclude the use of material, parts, or tools imported or purchased by a person licensed under general excise tax laws that are used for the construction of work or improvements of a redevelopment project.


Your Committee received testimony in support of this measure from the Hilo Fish Company, Kanoelehua Industrial Area Association, and three individuals. Your Committee received testimony in opposition to this measure from Kūpuna for Moopuna and League of Women Voters of Hawaii. Your Committee received comments on this measure from the Department of Taxation, Department of Budget and Finance, Department of Land and Natural Resources, and Office of Hawaiian Affairs.


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 H.B. No. 467, H.D. 1, and recommends that it pass Third Reading.


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