Why Is The State Legislature Attempting To Restrict The County’s Use Of Impact Fees?

WHT recently published an article which really concerned me. The state legislature is apparently considering legislation restricting the use of impact fees:  (Margaret Wille also delved into this issue here)

“The mayor cut off Planning Director Bobby Jean Leithead-Todd, as she responded to a question about state legislation that would remove counties’ powers to impose impact fees. Kenoi said those measures may be aimed at the state Department of Education, which is beginning a school impact fee program on Maui, and which has attempted for several years to launch a West Hawaii pilot program.”

I started making inquiries regarding these proposed bills. Councilman Pete Hoffmann e-mailed me this response:

“Aaron,

There are two pieces of legislation regarding impact fees. One concerns the impact fees I wish to impose under HRS 46, that’s for
development of residential, commercial and industrial properties. There’s a second piece of legislation for school impact fees, that’s HRS 304(?). I think that’s what the Mayor is arguing about. The criteria for imposing impact fees under those two HRS are different, and I also would have difficulty agreeing with the school impact fee bill.

Pete”

Sen. Josh Green‘s office graciously helped me with this effort. There were apparently two proposed bills ( SB 1396, and SB 248). These bills, if enacted, would prohibit the use of impact fees in urban areas. SB 248 has passed through committee, although SB 1396 did not. GM 75 only transmitted this report regarding the implementation of school impact fees.

I am definitely keeping a close eye on these two bills. The balance of power between the counties and the developers will shift if this legislation becomes law.