Daily Archives: April 15, 2008

Representative Jon Riki Karamatsu

Written Remarks

Senate Bill 3048, Senate Draft 1, House Draft 1

Relating to the Hawaiian Homes Commission Act

Tuesday, April 8, 2008

 

            I rise in support.

 

            Senate Bill 3048 provides the Department of Hawaiian Home Lands and all of its beneficiaries, with a tool that will aid them in their goal to be economically self-sufficient.

 

            We will change the way that the Department is able to lease lands for commercial developments.  First of all, it allows the Department and their development partners, the flexibility to work with large financial institutions to provide financing for projects on their commercial leases.  It is very tough in today’s tight commercial lending marketplace.  Investors look at the viability of projects, and its return on investment.  A longer term lease allows the parties the opportunity to work together to find the best financing arrangements that will make a project viable, which will benefit the Department and its programs for its beneficiaries.

 

            Second, most commercial leases across the mainland have 99 year terms with step ups at intervals for increased rents.

 

            Third, it gives financing flexibility for smaller projects and improvements on current leases.  Projects such as the Prince Kuhio Mall are up for rent renegotiations. This tool will provide the financial flexibility to current lessees to get a sufficient term on their lease so that it can be used as collateral for a loan.  The longer term lease will also allow the developer to recover their capital improvement investment and realize a reasonable return for the risk they are taking in making improvements to the property.  Even smaller projects such as the commercial project in Nanakuli benefit because they too will have to work with commercial lenders who will need to feel comfortable about taking the risk on a capitol improvements loan.  For lenders as well, a longer lease means that there is collateral value.  For the Department a longer lease means a longer revenue stream and the foundation for a budget on which they can plan their long term programs.

 

            Finally, commercial projects for the Department of Hawaiian Home Lands will provide the Department with the economic feasibility to develop more homes for their beneficiaries.  Longer term leases will mean better and stronger programs that will assist more native Hawaiian’s.  This is a win-win solution for the department and its beneficiaries. 

 

            To sum it all up, longer term leases will be more attractive to commercial lenders and developers who in return will provide a sustainable future for the Department of Hawaiian Home Lands and its beneficiaries.

 

            Thank you.

Representative Jon Riki Karamatsu

Written Remarks

Senate Bill 2646, Senate Draft 2, House Draft 2

Relating to Important Agriculture Lands

Tuesday, April 8, 2008

 

            I rise in support.

 

            The purpose of this bill is to provide a comprehensive set of incentives to establish and sustain viable agricultural operations on lands designated as important agricultural lands (IALs).  This bill, among other things;

 

(1)  Excludes income from certain agricultural leases on lands designated as IALs from the income tax;

 

(2)  Exempts income from certain agricultural leases on lands designated as IALs from the general excise tax (GET);

 

(3)  Allows landowners who have designated their agricultural lands as IALs to construct residential dwellings for farmers, employees, and their families on the IALs, subject to certain conditions;

 

(4)  Establishes an IAL Qualified Agricultural Cost Tax Credit (IAL Tax Credit) for qualified agricultural costs incurred by taxpayers, up to an unspecified maximum amount per year for each taxpayer;

 

(5)  Authorizes the Chairperson of the Board of Agriculture to guarantee agricultural loans for agricultural projects located on IALs;

 

(6)  Requires the Department of Agriculture (DOA) to include the water needs of IAL agricultural operations when developing the Water Use and Development Plan;

 

(7)  Requires the priority processing of permit applications for agricultural processing facilities submitted by an agribusiness, where the majority of the agribusinesses' lands are designated as IALs; and

 

(8)  Requires:

 

            (A)  DOA and Department of Land and Natural Resources (DLNR) to collaborate to identify and map public lands that should be designated as IALs;

 

            (B)  The Land Use Commission to designate these lands as IALS; and

 

            (C)  Management of such lands to be transferred to DOA.

 

            Thank you.

Representative Jon Riki Karamatsu

Written Remarks

Senate Bill 2198, Senate Draft 2, House Draft 2

Relating to Land Conservation

Tuesday, April 8, 2008

 

            I rise in support.

 

            This bill encourages the protection and preservation of land in the state by establishing a Land Conservation Incentives Tax Credit (Tax Credit).  Specifically, this bill allows taxpayers to deduct 50 percent of the value of the interest in lands donated in perpetuity or sold in a bargain sale for conservation purposes to the State or a conservation agency; or 50 percent of the amount invested in the management of lands for conservation purposes under an agreement with a conservation purpose, up to $2,500,000, from their net income tax liability.

 

            Thank you.

Representative Jon Riki Karamatsu

Written Remarks

Senate Bill 2803, Senate Draft 1, House Draft 1

Relating to Personal Information (Identity Theft)

Tuesday, April 8, 2008

 

            I rise in support.

 

            The purpose of this bill is to protect the personal information collected and maintained by state and county agencies through the implementation of the recommendations of the “Hawaii Identity Theft Task Force Report” of December 2007.  I served on the task force and through this bill we hope to reduce identity theft.  The bill:

 

(1)  Requires each state and county agency to designate an employee to ensure the agency's compliance with requirements relating to the security of personal information;

 

(2)  Establishes the Information and Privacy Security Council to be placed administratively within the Department of the Attorney General and appropriates funds for three staff analyst positions to support the Council;

 

(3)  Changes the effective date of Chapter 487J, Hawaii Revised Statutes, relating to social security number protection, to July 1, 2009;

 

(4)  Requires conditions on third party personal information use to be included in contracts between government agencies and third parties that provide support services on behalf of the agency;

 

 (5)  Requires state and county agencies responsible for human resource functions to develop and distribute to agencies, guidelines to minimize unauthorized access to personal information;

 

(6)  Requires state and government agencies to develop a written policy regarding notification of security breaches of personal information; and

 

 (7)  Defines the terms:  “government agency,” “personal information,” “personal information system,” “records,” and “security breach.”

 

            The current draft of this bill was amended to take out the requirement that:

 

(5)  Requires state and county agencies that collect, maintain, or disseminate documents with personal information to:

            (A)  Develop and implement a plan to protect the personal information; and

            (B)  Develop a written plan to eliminate unnecessary collection and use of social security numbers;

 

            Thank you.

Representative Jon Riki Karamatsu

Written Remarks

Senate Bill 3190, House Draft 1

Relating to Issuance of Special Purpose Revenue Bonds to Assist Sopogy, Inc.

Tuesday, April 8, 2008

 

            I rise in support.

 

            The development of clean electricity from a renewable and abundant resource, the sun, at a price lower than the market price and independent from oil price fluctuations will help Hawai’i become more self-sustainable and less reliant on fossil fuels.  Sopogy, Inc., specializes in the development, manufacture, and distribution of its proprietary concentrated solar power systems that generate electricity.  This bill would allow the issuance of $35,000,000 in special purpose revenue bonds to assist Sopogy, Inc. in its planning, designing, construction, equipping, and operating of a solar farm power plant on the island of Oahu.  I am proud to see this Hawaii company play a role in developing our renewable energy industry.

 

            Thank you.