HomeMy WebLinkAboutCOM 0336.000 1996-1998 Hawaii Sta~~. Association o~ Counties
Counties of Kauai, Maui and Hawaii, City 8. County of Honolulu
~ O ~~^4~
f~~ 0 TFF\I
May 28, 1997
To: James Arakaki, Chairman
and Members of the Hawaii County Council
From: AI Smith, Secretary-Treasurer l~
Hawaii State Association of Counties (HSAC)
Subject: HSAC Executive Cott+mittee Meeting -May 23, 1997
The following highlights of the HSAC Executive Committee Meeting of May 23, 1997 are hereby
submitted.
The Secretary's Minutes of the Executive Committee Meeting of Apti111, 1997 were approved and
placed on file (attached for information).
The Treasurer's Report for the month of April 1997 was approved and placed on file (attached for
information).
Under Unfinished Business, the Executive Committee reviewed the final status of 19971~IStkC-
sponsored and Related Bills at the 1997 Legislative Session. Of great interest to HSAC weie the
measures relating to public land liability, the transient accommodations tax, and pr~vatizatit}n. ~it11
regards to privatization, both Maui and Kauai have initiated a request for a special sessivtt, d1 Ginty
of Kauai's resolution was provided to Hawaii County. The status dated April 10, 1999, iS~?rsrV6tled
for your information (attached for information).
Also under Unfinished Business, with each of the counties appointing one of its members to serve
as an officer of HSAC, a slate of HSAC Officers for Fiscal Year 1997-98 was proposed by the
appointees. Prior to the formulation of this slate, it was noted for the record that Hawaii County
was supportive of rotating the officers among the various counties and was recommending Al Smith
for HSAC Second Vice President. However, upon finding that Kauai County had already approved
HSAC's current officers for reappointment, that slate consisting of:
President Rene Mansho, Honolulu Council Member
First Vice President Dennis Nakamura, Maui Council Member
Second Vice President Ronald Kouchi, Kauai Council Member
Secretary-Treasurer AI Smith, Hawaii Council Member
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James Arakaki, Chairman
May 28, 1997
Page 2
was submitted to the other counties for their review. It is recommended that the Hawaii County
Council approve this slate as HSAC Officers for Fiscal Year 1997-1998 (Action Requested).
Also under Unfinished Business, the proposed HSAC Budget for Fiscal Year 1997-98 was deferred
pending action by the Honolulu City Council on May 28, 1997. All other counties have reported
their approval of the HSAC Budget for Fiscal Year 1997-1998.
Under New Business, the nomination of representatives to the National Association of Counties
(NACo) Board of Directors for Fiscal Year 1997-98, to the Western Interstate Region (WIR) Board
of Directors, and to NACo Steering Committees were deferred pending action by the counties. The
Hawaii County Council has already taken action on these matters.
Finally under New Business, President Mansho passed out a communication from the City Council's
Economic Development, Planning, and Tourism Committee which requests that Governor Cayetano
veto Senate Bill 37, SDI, HD2, CD1, Relating to Enterprise Zones. The communication and its
attachments point out that Section 209E(4) of the Hawaii Revised Statutes clearly specifies that the
counties are the governing bodies with regard to the establishment of enterprise zones, while the
state serves as the approving entity. The intent of Senate Bill 37, SD1, HD2, CD1, which extends
the boundaries of the Waialua Enterprise Zone, is to encourage and support county-driven economic
initiatives. This intent, however, counters that principle of home rule by authorizing the state
government to establish zones, as opposed to approving them as stipulated by the original law.
Recognizing that this is a home rule issue, President Mansho has requested that HSAC consider
taking a position of urging a veto of Senate Bill 37, SDI, HD2, CD1 (Attached, Action
Requested).
Under Announcements, it was reported that the final accounting of the fiscal year 1996 HSAC Mid-
Year Conference resulted in a net gain of $6,102.40, which was deposited in the HSAC general
checking account. Of this sum, $1,000 represents an advance from HSAC. This receipt is also
reflected in the Treasurer's Report for the month of April 1997.
There being no further business, the meeting was adjourned. The next HSAC Executive Committee
meeting is scheduled for HSAC Year-End Conference: 8:00 a.m., June 27, 1997, Hawaii Naniloa
Resort, Hilo, Hawaii.
Attachments
Hawa» Stay Assoc~at~on c..~ Counties
Counties of Kauai, Maui and Hawaii. City 8. County of Honolulu
HA\J':UI 5"I:\l l-: -\SSOCL-\TfON OF COt NIIES (HS:\C I
EXECI'I~IVE COA~INIITEEE \dEEaING
\pril I I . I ~9~
Honolulu (ouncd Committee Meenm__ Room
Honolulu, Ha~~aii
I. CALL TO ORDER
The HSAC Eaecuti~e Committee was called to order b~ President Rene ~\lansho at ~ 0~? ;tm
The following members present made up a quorum:
Ciri' and Counri of President Rene Mansho
Honolulu Staff Elaine Lee
Staff Cookie Harris
Counri of Maui First Vicc President Dennis Nakamura
Staff Day id Raatz
County of Kauai Kauai :Utemate James Tehada
Staff Ccndi \vonon
County of Hawaii Secretan -l reasurer AI Smith
Staff Garald \-louden
Also present Puns :\kana. Hawaii Fire Sports. Inc
IL EXECUTIVE COMMITTEE-: (\IEk-.."I1NG MINUTES
The minutes of the March I -I. I'>~>? maeting of the HSAC E.secuti~r Committee ~~-ere apprrn ed
as circulated.
III. TRF.r\SURER'S REPORT
The Treasurer's Report for the month of Nlarch 19`7"' as approved a~ rirctdated
.~~47',.
1V. REPORTS
A Executive Committee Reprn't
The following Execuu~e Connnittec Reports ~~rrr tilyd
I Reporting rot the approval of an HS:\( Resolution m Support of Stab
Legislation to hand DARE's Five-Year Plan I Appro~ ed on 49arch I a. I •t,t, i
2. Reporting nn the approval of an HSAC KcsoluUon in Support of Statc
Legislation Insunn_~ Funds for the Stater+tde frail and Access Scstem of '\a
.-Ala Hele.' tAppro~ed on March I-l. 19~t7)
B. Counp Report
There were no County Reports.
C NACo Reports
There were no NACo Reports.
D. WIR Reports
President Mansho advised the members that a \4'ON l\\'omen Officials of N:\Co~
Luncheon has been scheduled on Friday. 44av 33. 199 at the \4'IR Conference m I.ihue
Kauai. Mayor Kusaka will be their guest speaker. Cost for this luncheon is $ I u nu
UNFINISHED BUSINESS
A. 1997 HSAC Legislative Package
The Executive Committee reviewed the status of bills included in and relating to the
HSAC Legislative Package as per status report from President ~4ansho to Members
dated April 10. 1997 h was noted that the Public Lands IiabiliA' bill in ito Iroraer alive.
VI. NE\4' BUSINESS
A. Examination of Coopers & Lybrand Audit Recommendations
The fiscal year 1995-96 financial audit of the HSAC as conducted b~ Coopers &
Lybrand was submitted b\' HSAC Secretar\-Treasurer AI Smith. His communirauon
dated March 18. 197. also included a Reconciliation of Cash to Accounts to the Pl'
1996 ,4nnual Audit as recommended by Coopers R l.cbrand 1'he Execuu~ r
Committee accepted the audit. Extra copies were prop ided to the counties foi
information
B Proposed HSAC &idgat for fiscal Year I qq--`>`~
The proposed HSAC hud~~et la fiscal wear I ~~~)--~>S ;i. >uhmitted h~ Ai ~Snuth
Secretary-Treasurer in ;t ronununication dated 'Vnrh I -t I ~,~a~ referred to th,
councils for consideration During discussions and for ihr r_cord it ~.~as noted thal ih~
proposed reduetio_n in interest income ~~as not proportional to the anticipated reducu<,n
in fund balance. In response_ n ~cas submitted that the umut ~ of revenues and
expenditures as ~~ell as the actual fund balance on Juh I I'tct7 can account for ~~~rn~ of
the variances.
C Preparation of the Slate of fIS ~C' Officers loi f~~xal l'oar t ~)~>7-<tt;
As the counties are still m the process of appointing their representam~es to the f Iti.Al
Executive Committee. this matter was deferred until the next nteeung
D. Briefing by Puni Akana of Hacvait Fire Sports. Inc on the I ~>~A International Pirrti~_htei
Games in Hawaii.
Mr. Puni Akana. Presidem of Hawaii Fire Sports. Inc hnekd the I{xecuuce (onnnittee
on the planned International Firefighter Games ~~hich will be held in Ha~caii durutc lone
1998. He estimated that some ?,000 fire fighter s from around the t~cxld will he
participating in these lames The games for I e~S are bein~~ planned for Oahu. \ law and
possibly Molokai. Thee have requested a grant from the State of Hawau and arc
seeking additional sponsorships.
Mr. Akana also indicated that the International Firefighter Games in the ~~ear _Oi)~~ are
also being planned for Ha~~an He anticipates that these games ccill he used to sho~~casc
venues on the other nei_~hbor islands
VI1. COMMUNICATIONS
The following communication ~~as placed on file:
I. From AI Smith, Secretan=treasurer. to Executive Comminee \lemhers. dated iblarch a
1997, regarding travel reimbursements.
2 From Jeff Arnold. to Public Lands Steering Committee- 41~IR Board K State association
Executives. dated .April 10. 1997, regarding Riparian Restoration Satellite Broadcast
F.Y.I.
Vl(l. ANNOUNCEMENTS
Next Meeting: I:00 p. m.. Ma} ?3. 1997. Kauai Marriott
IX. ADJOURNMENT
There being no further business the meeting of the Executive Committee was adjourned n
10:15 a.m.
Very truly yours.
AL SMITH
Secretarv-Treasurer
Hawaii State .Association of Counties
-4-
Hawaii St~_~e Association ~f Counties
Counties of Kauai. Maui and Hawaii. City 8.County of Honolulu
~~Alav (i, 1997
I'he Executive Committee ~lembers
Hawaii State .Association of Counties
Dear Sirs:
Please find enclosed the report of the :\ssociation's revenues collected and
expenses paid for the fiscal period :\pril I to .April ~0. 19~'.
\'erv [rule yours.
:\l. SMITH
Secretary-Treasurer
Hawaii State Association of Counties
Enclosure
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Hawaii State Association of Counties
Counties of Kauai, Maui and Hawaii, City 8, County of Honolulu
~ ~~,,v..~,~`t
May 2, 1997
TO: EXECUTIVE COMMITTEE MEMBERS
FROM: RENE MANSHO, PRESIDENT ~
HAWAII STATE ASSOCIATION OF COUNTIES (HSAC)
SUBJECT: FINAL STATUS OF 1997 HSAC-SPONSORED AND RELATED BILLS
Please find attached an update on the final status of bills
in the 1997 HSAC Legislative Package and those bills that relate
to them. The table should be used as a guide.
Only one bill in the table was approved in the 1997
Legislative Session. On April 29, 1997, the State Legislature
approved House Bill No. 417, House Draft 3, Senate Draft 1,
Conference Draft 1, relating to the statewide trail and access or
"Na Ala Hele" program. The remaining bills noted on the attached
table will be carried over for consideration and/or deliberation
in the 1998 Legislative Session.
Please be advised that no official action by HSAC is
required for this transmittal.
Attachment
vk
Na •
~t
FINAL STATUS OF 1997 HSAC-SPONSORED AND RELATED BILLS
(4/30/97)
Blhtr NO. TITLE STATUS CU'MMENTS
(Introducer)
IMMUNIZING GOVERNMENT FROM PUBLIC LAND LIABILITY
SB0244 Public Passed 1st Introduced on behalf of HSAC. Provides public land
(Mizuguchi) Land Reading in liability immunity to counties in azeas that are unimproved
Liability Senate, public property.
Immunity refetted to
TIA, WLH.
HB0456 Public Passed lst Introduced on behalf of HSAC. This is a companion bill to
(Souki) Land Reading in SB0244.
Liability House,
Immunity refetted to
JUD,
SB1387 Public Passed 1st Establishes a new chapter providing [he government
(Kawamo[o) Land Reading in immunity from liability azising from natural conditions on
Liability Senate, public land.
Immunity refetted to
WLH, IDC.
SB1412 Public Passed 1st Provides public land liability immunity to counties in areas
(Mizuguchi) Land Reading in that are unimproved public property.
(by request) Liability Senate,
Immunity referred to
WLH, JDC.
SB0364,SD1 Public Passed 3rd Bill was amended to: (1) Require the state and county
(Chumbley) Land Reading in operating a beach park to submit to the chairperson of the
Senate, Board of DLNR a plan for signage [ha[ must be approved or
Passed 1st amended within 90 days; (2) Provide that the signage plan
Reading in required under the measure will not be construed to impose
House, liability to the State and counties; and (3) Repeal Act 190,
refetted to SLH 1996, because the provisions of this bill now supersede.
JUD.
PREFERENCE TO BIDDERS ON COUNTY CONTRACTS
SB0246,SD1 County Passed 3rd Introduced on behalf of HSAC. This bill was amended to
(Mizuguchi) Contracts Reading in allow the counties to enact a contract preference for bidders
Senate, identical to the state's contract system.
Passed lst
Reading in
House,
referred to
FIN.
BILL NO. TITLE. STATUS CQiVIMENTS
(Introducer)
HB0458 Preference Passed 1st Introduced on behalf of HSAC. Allows counties to enact a
(Souki) to Bidders Reading in contract preference for bidders similar to [he state's contract
on County House, system.
Contracts referred to
FIN.
SB0992 Public Passed lst Authorizes the counties to enact by ordinance a procurement
(Chumbley) Contracts Reading in preference identical to that granted by the state for its public
Senate, works projects.
referred to
TIA, GOH.
HB 1472 Preference Passed 1st Allows counties to adopt by ordinance an identical
(Kanoho) to Bidders Reading in preference, or IS percent, that the state gives to state public
on Agency House, works projects. If the bid is $5 million or less, a 15 percent
Contracts referred to preference, given to bidders who have filed and paid Hawaii
FIN. tax retums for four successive years prior to submitting [he
bid. If the bid is more than $5 million, the 15 percent
preference is given to bidders who have filed and paid
Hawaii tax retums for eight successive yeazs prior [o
submitting the bid.
SB1409,SD1 Preference Passed 2nd This bill was amended [o allow counties to apply the state
(Mizuguchi) to Bidders Reading in preference to county projects at 15 percent and specifying
(by request) on County Senate, dollar amounts of $1 million and $2 million.
Contracts referred to
WAM.
REVENUE SHARING/TRANSIENT ACCOMMODATIONS TAX/GENERAL EXCISE TAX
SB0245 Revenue Passed 1st Introduced on behalf of HSAC. Authorizes, in certain
(Mizuguchi) Sharing Reading in cases, the deposit of more than 1/6 of revenues collected
Senate, from TAT into the convention center capital and operations
referred to fund, and the distribution of GET to the counties to make up
WAM. for any resulting loss therefrom.
HB0457 Revenue Passed 1st Introduced on behalf of HSAC. This is a companion bill to
(Souki) Sharing Reading in SB0245.
House,
referred to
FIN.
SB0247 GET Passed 1st Introduced on behalf of HSAC. Provides the counties a
(Mizuguchi) Reading in reimbursement by appropriation for general excise taxes
Senate, passed on to them through written claims submitted to the
referred to department of budge[ and finance.
TIA,
WAM.
2
BILL NO, .TITLE STATUS COMMENTS
(Introducer)
HB0459 GET Passed Ist Introduced on behalf of HSAC. This is a companion bill to
(Souki) Reading in SB0247.
House,
refereed to
F[N.
HB2139 Exempting Passed 1st Provides a general excise tax exemption and exclusion of
(Souki) Counties Reading, in gross proceeds of sales to [he counties.
(by request) from the House,
GET refereed to
FIN.
SB1221 Tourism Passed 1st Increases TAT from 6%to 6.5%. Establishes tourism
(McCartney) Reading in promotion special fund to be expended by DBEDT, and
(by request) Senate, specifies certain TAT and GET revenues for this fund.
referred to
ECD,
WAM.
HB1304 Taxes Passed lst Returns TAT to the counties of origin. Requires counties to
(Fox) Reading in report to the legislature annually on its efforts to support
House, tourism.
referred to
TSM, FIN.
SB0769 GET Passed lst Establishes a GET credit for each county for the GET that
(McCartney) Reading in each county pays.
Senate,
referred to
TIA,
WAM.
SB0264,SD] GET Passed 2nd This bill was amended to reduce the GET rate from 4% to
(Kawamoto) Reading in 2% for the sale of goods and services to the counties from
Senate, the GET, and require counties to apply any savings realized
referred to from the reduction of the GET to certain programs relating to
WAM. the youth, health and safety, and crime prevention. Technical
and non-substantive amendments were made in [he SDI.
3
BILL NO. TITLE STATUS COMMENTS
(Introducer)
HB0563 TAT Passed ls[ Distributes revenues collected under the TAT by: 1. Setting
(Say) Reading in $70 million as the total amount distributed to the counties; 2.
House, Retaining the percentage share of the aggregate amount
referred to distributable to each neighbor island county as follows:
FIN. Kauai, 14.5%; Hawaii, 18.6%, Maui, 22.8%, and Honolulu,
44.1%; 3. Distributing to the state the excess remaining after
the distributions to the counties. Reduces distributions to a
county by an amount equal to any increase in that county's
revenues attributable to an increase in that county's real
property [ax rate on hotel property that is not accompanied
by a similar or greater increase in the tax rate on other real
property.
H813 ] 5 Financing Passed 1st Increases the amount of TAT deposited into the convention
(Suzuki) of the Reading in center capital and operations special fund from 1/6 of the
(by request) Convention House, total TAT to an amount determined by the state director of
Center referred to finance for the payment of debt service on bonds for
TSM, FIN. purposes of the convention center. Authorizes the counties to
receive a percentage of GET to compensate for funds that
were not distributed as a result of the allocation of greater
than 1/6 of TAT to convention center capital and operations
special fund.
SB1472,SD2, Govern- Passed 3 Deletes all existing language of the bill which dealt with
HD2 ment Readings in the distribution of TAT.
(Mizuguchi) Senate.
(by request) Passed 3 Inserts provisions on privatization of government services.
Readings in Establishes the types of programs or projects, and [he
House. procedure by which the programs or projects, may be
Referred to privatized by the state or county government, including
conference services provided by grants, subsidies, and purchases of
committee. services pursuant to Chapter 42D, HRS, and incidental to
purchases of goods, teal property, and construction of
facilities awazded under Chapters 103 and 103D, HRS, which
have been customazily allowed in the pas[ and currently
existing. Provides that services previously contracted under
law, charter or ordinance, previously by custom and practice,
or temporary and incidental to the purchase of goods and
construction of facilities under Chapter 42D and Chapters
103 and 103D, HRS, may be certified if the contract was
executed in good faith and would have been qualified and
authorized under this Act.
SB1677,SD1 Exempting Passed 2nd Exempts counties from general excise taxes. Technical and
(Mizuguchi) Counties Reading in non-substantive amendments were made in the SDI.
(by request) from the Senate,
GET referred to
WAM.
4
BILL NO. T[TLE STATUS COMMENTS
(!n[roducer)
SB1752,SD1 Taxation Passed 2nd This bill was amended to change the TAT rate and to delete
(Taniguchi) Reading in [he section which would have changed the percentages of the
Senate, TAT distributed to [he counties. Technical and non-
referred to substantive amendments were made in the SDI.
WAM.
HB1805,HD2, Govem- Passed 3 Requires [he five percent of the TAT normally retained by
SDl ment Readings in the State to be deposited, for a period of two years, into the
(Souki) House convention center capital and operations special fund. Act is
(by request) Passed 3 [o be repealed on June 30, 1999.
Readings in
Senate.
Referred to
conference
committee.
HB1923 Taxation Passed 1st Changes the allocation of the TAT to the State and the
(Cachola) Reading in counties to be [he amount allocated for the fiscal year 1995-
House, 1996. Requires the remaining balance to be deposited to the
refen•ed to credit of the convention center capital and operations special
TSM, FIN. fund.
HB1931 Taxation Passed Ist Changes the county general excise and use tax surcharge
(Cachola) Reading in provisions by changing the amount to a maximum of 1
House, percent, and repealing [he sunset dates, and the requirements
referred to on the use of surcharge revenues. Increases the county
TSM, FIN. general excise and use tax from 4.5 percent to 5 percent.
Raises the TAT from 6 percent to 7 percent. Establishes that
TAT allotments to any county shall be equal to or less than
the amount that was allocated during fiscal year 1994-1995.
Requires counties adopting a county general excise and use
tax to reduce the amount of revenues allocated to it by that
percentage which the county's general excise and use tax rate
constitutes a percentage of 1 percent.
SB1942 State and Passed 1st Provides that beginning Iuly 1, 1997, 3.33 percent of all
(Kawamoto) County Reading in general excise tax revenues shall be retained by the Stale. Of
(by request) Relations Senate, the remainder, Kauai county will receive 11 percent; Hawaii
referred to County, 23.7 percent; City and County of Honolulu, 45.1
TIA, percent; and Maui County, 20.3 percent. Repeals the
WAM. distribution of TAT to respective counties. Also, transfers
employees of DLNR and DOT to the respective counties.
Amends career criminal provisions by repealing provisions
which allow the AG to allocate and award funds to the
counties. Repeals state DOH's role in emergency medical
services.
5
BILL NO. TITLE STATUS COMMENTS
(Introducer)
HB1953 State Passed 1st Provides a residential real property income tax credit in the
(Suzuki) Finances Reading in amount of the residential real property paid. Permits [he
House, governor to implement a state income-based, residential real
referred to property tax credit. Provides that the fines and forfeitures for
TSM, FIN. convictions of or forfeitures of bail by persons charged with
violations in that county shall be transmitted to that county.
Changes the distribution of TAT by reducing [he amount
distributed to the counties by [he amount of residential real
property tax credits claimed. Amends the public service
company tax provisions to establish that all taxes in excess of
4 percent shall be distributed [o the counties according to
specified percentages.
HB2077 Compre- Passed ls[ Establishes a comprehensive income tax. Repeals income [ax,
(Yoshinaga) hensive Reading in estate and transfer tax, GET, TAT, use tax, public service
State Tax House, company tax, public utilities franchise tax, tax of banks and
Reform referzed to financial corporations, transfer of real property tax functions,
FIN. conveyance tax, and rented motor vehicle and tour vehicle
surcharge tax.
HB2141 State and Passed 1st Provides that beginning July 1, 1997, 3.33% of all GET
(Souki) County Reading in revenues shall be retained by the state. Of the remainder,
(by request) Relations House, Kauai county will receive 11 percent; Hawaii county, 23.7
referred to percent; the city and county of Honolulu, 45.1 percent; and
TRN/LAB, Maui county, 20.3 percent. Provides GET and use tax
WLU, FIN. revenues collected by the state to the counties, in exchange
for the assumption of maintenance and operations of state
roads and parks by the counties. Repeals the distribution of
TAT revenues [o the counties.
HB2318 Govern- Passed 1st Requires all funds from the TAT to be used for the visitor
(Fox) ment Reading in industry. Distributes 10% of GET [o the counties. Distributes
House, excess of 4% of public service tax and all unadjudica[ed
referred to traffic fines [o counties in which tax or fine was collected.
TSM, FIN. Requires the director of transportation [o transfer
percent of moneys in the State highway fund each year to the
county highway funds for maintaining and operating state
highway system. Transfers state authority to conduct
emergency medical services to the counties.
STATEWIDE TRAIL AND ACCESS/NA ALA HELE PROGRAM
HB0417,HD3, Statewide Legislature Provides funding for DLNR's Trail and Access Program (Na
SDI,CDI Trail & approved. Ala Hele) from a proportional share of fuel tax revenue, user
(Okamura) Access fees, and private funds into the special land and development
Program fund. Funding through the fuel tax limited to $250,000 per
fiscal year. Appropriates $200,000 for the program.
6
s
.BILL NO. TITLE STATUS CQIVIMENTS
(Introducer)
DARE PROGRAM
HB1442,fiD1 Grants-In- Passed 2nd Appropriation to the department of budget and finance for
(Souki) Aid to Reading in grants in aid to the county police departments for expansion
(by request) Expand House, of [he DARE program to intermediate and high schools in
DARE referred to their respective counties. This bill was amended to
FIN. appropriate $1 for purposes of further discussion and make
technical, nonsubstantive amendments for purposes of style
and clazity.
SB1076,SD1 Grants-In- Passed 2nd Appropriation [o the department of budget and finance for
(Mizuguchi) Aid to Reading in grants in aid to the county police departments for expansion
(by request) Expand Senate, of the DARE program to intermediate and high schools in
DARE referred to their respective counties. This bill was amended to provide
WAM. additional information on the DARE program and the 5-year
master plan in section 1 of the bill.
7
r _ ~r. IL
CITY COUNC
_ ,
u .t, Su~L 4
CITY AND COUNTY O F H O N O L U L U
~'b~4L'?_~I. HONOLULU. HAWAII 9GG13-30G5 / TELEPHONE 547-7000
,:m~„
May 9, 1997
The Honorable Benjamin Cayetano
Governor of Hawaii
Executive Chambers
State Capitol
Honolulu, Hawaii 96813 - -
Dear Govemor Cayetano:
We, the members of the City Council's Economic Development, Planning,
and
Tourism Committee, request that you veto Senate Bill 37, SD 1, HD 2, CD 1, Relating to
Enterprise Zones, which extends the boundazies of the Waialua enterprise zone.
The enabling legislation sought to encourage and support county-driven economic
initiatives. The intent of this measure, however, would be counter to that principle of
home-rule by authorizing the state government to establish enterprise zones, as opposed to
approve them as stipulated in the original law. The City and County of Honolulu has
already established an enterprise zone for Waialua, which the state approved last summer.
" We are now considering expanding that zone [o accommodate the wishes of azea
legislators, and see no justification for the state's involvement in the speciftcs of zone
designation.
Corittee Chair Mufi Hannemann earlier apprised you of our other concerns,
including the erroneous assumption regazding the establishment of the Kauai enterprise
zone. We also share his belief that conflicting jurisdictions and competing economic
incentives could compromise a very promising economic development program benefiting
not only businesses and residents of the area, but the state and county governments as well.
Thank you for your consideration of our request.
Mufi n emann J n elix
Chair Vi C-hai
i
~Il;lnna i~eado Kim ~ IZcnc ~-fantilw ~1~ Jon~'o~~imurt
.
CIT'~ CO'LJNCIZ,
CITY AND COUNTY O F H O N O L U L U
~,';~rn~ HONOWLU, HAWAII 96813-3065 / TErE PHONE 547-7000
~~IUFI IL\NN6MnNN
COUNCILM LM[IGR
CHnIR, GCONOMIC OGVRLOPMGNT A PLMINWG COMMffItiE
(808) 54]-]008
GMai l: much @pl Ai.com
April 25, 1997
The Honorable Robert Bunda
State Senate
State Capitol, Room 215
Honolulu, Ha aii 96813 -
c~
Dear Se Bunda: -
In response to your question, and in my capacity as the Honolulu City
Council's chairman of the Economic Development, Planning, and Tourism
Committee, I would be more than willing to have the Council look into
expanding the boundaries for the Waialua enterprise zone. I will work with
Councilmember Rene Mansho to specifically identify and consider the
agricultural lands in the area.
Section 209E(4), Hawaii Revised Statutes, clearly specifies that the counties
are the governing bodies with regard to the establishment of enterprise zones,
while the State serves as the approving entity. In keeping with this authority,
the City established a zone in Waialua in 1995, which the State approved in the
summer of 1996.
Thank you for the opportunity to comment on this matter.
Sincerely, -
Mufi Ha nemann
cc: The Honorable Benjamin Cayetano
The Honorable hlorman Miziguchi
The Honorable Joe Souki
The Honorable Brian Taniguchi
I~hc [ Ionorab(c Joe Tanaka
~1 he I lonofablc Robcrl 1 ierkes
l~ho I Il,norablc Scijl Naga
` s
C=TY" COUT~TC~CL
- C I T Y A N D C O U N T Y O F H O N O L U ~ U
HONOLULU. HAWAII 9GE313.3065 / TEE PHpNE 547-7000
MUFI HANNEMANN
Councilmember
Chair, Economic Development. Planning 8 Tourism Commiliee
Phone: (808) 547-7000
Fax: (808) 523-4220
E-Mail: mulin®pixi.com
April 22, 1997
The Honorable Joseph Souki
Speaker
House of Representatives
Slate Capitol
Honolulu, Hawaii 96813 _
Dear Spe ~~ouki:
Subject: Senate Bill 37, S.D. I, H.D. 2, C.D. 1
It has come to my attention that House and Senate conferees on economic
development yesterday agreed to a proposal by Senator Bunda that unilaterally extends the
boundaries of the county-established enterprise zone for Waialua. It is my understanding
that some of the conferees may have been led to believe that this proposal would not be
precedent-setting, and that the Legislature had in fact approved a similar measure last year
with respect to the Kauai County enterprise zone.
As chairman of the Honolulu City Council's Economic Development, Planning,
and Tourism Committee, I strongly object to the proposal, for the following reasons:
Section 209E(4), Hawaii Revised Statutes, clearly specifies that the counties are the
governing bodies with regard to the establishment of enterprise zones, while the State .
serves as the approving entity. In keeping with this authority, the City established a zone
in Waialua in 1995, which the State approved in the summer of 1996. _
In discussions with Seiji Naya, Director of Business, Economic Development &
Tourism, a few weeks ago, [expressed my willingness to look into expanding the
boundaries for the Waialua zone to accommodate Senator Bunda and area Councilmember
Rene Mansho. This effort would be made in conjunction with a new zone to be established
around the Honolulu International Airport district, based on the State's plans ro assist
Continental Airlines in creating additional jobs for our residents. However, it now appears
Council legislation will be preempted by SB 37.
The conference committee's proposal, if adopted, would be a re~.~ersal of [he intent
of the original legislation, which sought to encourage and support county-driven economic
initiatives- II would usurp home-rule by empowering the State to establish the boundaries
of economic zones, rather than to approve them as mandated in the enabling legislation.
c
- ~ ___-_u
i
/ Apnl 22, 1996
Page 2
In regard to the Lihue issue, based on 1990 census data, the Lihue census tract was
the only one in Kauai County that was ineligible for inclusion in an entetprise zone.
However, in (993, at the county's request following Hurricane Iniki, the Legislature made
only the Lihue census tract eligible for inclusion in an enterprise zone. The Legislature did
not actually designate that tract or the rest of Kauai as an enterprise zone; the county
government still had to submit zone nominations, subject to the Governor's approval.
Given these circumstances, no precedent exists for legislative designation of enterprise
zones. The Department of Business, Economic Development & Tocrism can substantiate
these facts.
Moreover, the proposed dual jurisdic[ioq would hamper the effective administration
of [he Waialua zone. Will the City administer one zone and [he State another? What _
economic disincentives will be generated by a State zone with afive-year duration and a
county zone with a 20-year lifetime? Will county incentives apply to the State zone? These
and other questions do not appear to be addressed in the legislation, and the result could be
unnecessary confusion for businesses and the public. -
SB 37 opens the door for a flood of subsequent amendments and may hinder the
creation of future enterprise zones. It would also adversely affect county-State cooperation
on economic development initiatives. I urge you to recommit the measure to the conference
committee, with specific instructions [o strike this provision from the bill. Should you be
unable [o recommit the measure, I ask you to oppose the conference draft.
~ Thank you for the opportunity to comment on this measure.
Sincerely,
~I
Mufi Han ~mann
cc: The Honorable Benjamin Cayetano
Members of the Senate _
Members of [he House of Representatives
The Honorable Seiji Naya
. , -4
. F.. - -
TI If ENnTr J. B. N O. S i
NIf~IETEENiH LEGISIATURF, 1997
STATF OF 1 iG~WAII
A BILL FC~R AN ACT
RELATING TO ENTERPRISE ZONES.
$F iT E1\ACTED $X THE LEGISLA7LLRE OF'L'HE STATE OF kLAVVAII:
1 SECTION 1. Section 209E-2, liawaii Revised Statutes, is
2 intended as follows:
3 1. By intending the definition of °e3ucati.on and training
4 servi.res" to read:
5 ""Education and training services" [include] means courses
hand programs for international business executives in
- 7 [international] business management, marketing, financial
R services, human resources, r9sk management, and for tPChniciins
gin environmental sciences and remediation." _
11) 2. Hy amending the definition O[ "medical and health care
llservices" to read:
1Z ""Medical and heil.th care services" [includes] mcins medical
13 research, clinical trials, and telemedicine, [and related
14 consulting services,] but not routine medical treatment or
IS services." '
l6 3. t3y amending the definition of ^telecarununication
17 services" to read_
1R ^"Telecommunication services" [include] means terrestrial
19(ropper ,god optical fiber cable) and satellite information
~f~17 CD ~
hlwR-ESE:-~ ~.~r-[i _P ,1:-_ ~~1 r=. :_:.~7~~_t • i
F
Palo 2 S . U ~ { v ~ . S. D. 1
ldelivery systems, switching systems, and ground stations, [and
2 rel.ar..ed consulting servi.ces,] but not consumer services."
3 SECTION 7.. Section 209E-4, Hawaii Revised Statutes, is
4 amended to read as Follows:
5 "~209E-4 Enterprise zone designation. (a) The governing
Gbody of any county may [make written application] ai>p1V in
e
7writincr to the department to have an area declared to he an
Aenterprise zone. The application shall include a description of
9 the lor_ation of the area or areas in question, and a general
lOstatemertt identifying proposed local incentives to complement the
llstate and any federal incentives.
12 (h) The governor, upon the recommendation of the director.,
l3 shall approve the designation of up to six areas in each county
14 as enterorise zones for a period of t~~jenty years. Any such area
IS Shall be located in one United States census tract or two or more
16 conr_iguous United States census tracts in accordance with the
17 most recent decennial United States Census_ The census tract or
1R tracts within cohich each enterprise zone is located also shall
19 meet at least one of the following criteria:
20 (1) Twenty-five per cent or more of the population have
21 incomes belo'a eighty per cent of the median family
22 income of the county; or _
2J (21 'Phe unen~ploy7ncnt rate i.s 1.5 times the state average.
,tiRt7 5U1
a ~
I'c7{le 3 S , ~ , N ~.l r ~ b. 1
1 (c) Notwithstanding subsection (b), [all] census [tracts]
2 tract 11405 toithin the county of Kauai shall be eligible for
3 designation as an enterprise zone. [Such] The el~ibility_ for
4dpsignation[, if made,] shall remain in effect ttntil January 1,
5 [1996] 1997__unless r_he governor earlieY determines that (the
6designatinn] the elicli>?ility is no longer ne~essary~
7 (d)_ Iiot..withstandin~subsection (b),or (c)_the Wai.alua
R district_on Oahtt,_ as _de_fined_in section 4-1(3) (D~_sha11 be
9 designated ari entet:'1?rise zone on July 1, 1997_, and the
lOdesictnation shall. remain in effect until June 30, 2002."
I1 SECTIO.1 3. Section 209E-4, Hawaii Revised Statutes, is
12 air~ended as follows:
l7 1. Ry amendi.nq subsection (c) to read:
14 (c) 6ubgeCY_10115 (a) (1) , [ (a) (3) , (a) (4) , and] (a) (2)_~
IS (b) (1) L and .i??) ~ 1 shall not apply to agriculture producers in
16 any county with a popular ion of one-hundred thousand or less[.];-
17~rovided_that the agricultural producers shall on1V be subject to
1R secr_ion_209E•9(b)~3 and_(4)_, if they began operations prior to
19Ju1y_ 1, 1996, and only to section 209E-9(a)(3) and (9), if they
2l1}~e~carl_operations on_or_after July 1, 1996, but prior_to July 1,
21 1.998___'I`his subsection__sha11~p1 to those producers even if the
22 area within_r_he count in which th~are located is subsecluent~
23 designated as an enterprise zone -Any agricultural producers
H 3 -i •5 Il 1
t-Iml-'_.~ ~ LII I~ n-I qq PPI i ~ J ` -
~ .
(~<,~,t3 ~ S. B. N O. s
o,
1 descrihed in this_ subsection ~that_seek_elic~,
i}?ility as a crualafied
2 business after .iw1e _3~ 1998__ in a coun~_with a nn oration of
- - - p
3 100~_000_or less shall be subject to section 209E-9 (a) or (b)."
J 2. By amenrl.iny subsection (f) to read:
5 "(f.) Tangible personal property must be sold by an
6 est:ahli.shment of a qualified business within an enterprise zone
land the transfer of title [and deliver=y) to the buyer of the ~
Rtancrit~te personal property must take place in the same enterprise
9zone in wiri.ch the tanyilile personal property is sold. Services
lOmust be sold by an establishment of a qualified business en«ac~ed
llin a service business [or calling) within an enterprise zone a.nd
tlr_he services must be delivered in the same enterprise zone in
I.i:vhich sn1d. Any services rendered outside of an enterprise zone
l4 shall not be deemed to be the services of a qualified business."
15 SECTION 9. Act 286, Session Laws of Hawaii. 1996, is amended
IFihy am~ndiny section 5 to read as follo:vs:
I~ "SECTION S. This Act shall take effect upon its approval;
lRltrovi.ded that on June 30, 1498, section 209E-9(c:), Hawaii Revised
19 Statutes, shall be repealed and the rernaininy subsections in
20sPCt.ion 104E-9, Hawai.-i Revised Statutes, shall be renumbered
2l accordi.n<71Y[_1; and provided further that arm agricultural
22 producers_oLer_a_tincr as _a qualified busiuess_pttt_suant__to section
23209E-9(c), Hawaii F~vised Statutes~_prror_to June 30, ].998, rn~
SCs 3 7 SUl
FI,a=~-0~9-~_ I-IrD C~.I :Cif r'PI .-R-=.r.-. _.~c~.i , P_Fd:.
Pc ide G ~ . LJ ~ ~ ~ . S.D. 1
1 completo their seven years-af' eli~ility under_chaGter 209E,
2 Hawaii_Re_vise3_Statutes__ _Those agricultural~zoducers shall one
3 be subject_to cPC•ti.nn 209E-9 b)(3) and (4Z~_Hawaii Revised
d statutes_ if._they_UecLan .operations prior to July_1_, 1996, and to
5 section 209>-9_(a)(3~_and t4), Hawaii Revised Statutes, if they
6pagan o~ierations on or after July_ 1~96~__but prior_to July 1,
7 1998= _Notwithstanding any provision _to the contrary,.
R agricultural 7.~roducer::_ under section_ 209E-9 (c) ~ Hawaii Revised
9 St_atut:es,_are not_required to derive at least fifty per cenr_ of.
10 their-_~nmral gross revenues from agricultural production in a
1l designated_c~nterprise_zpne-,even if the area within the county iat
+ 12 which _they are _located is subset
ues fitly designated as an
13 enterprise zone. Any_agtzcu.ltural producers seekinc~elic7ibility
14as_a ~ualif_ied_business after June 30, 1998, in a county with a
ISpopulati,on of 700,000_or less shall be_subject to the
I6requiramanrs of section 209E-9 (a) and__~Z~ Hawaii. Revised
I7 Statt~ tP..S.
1K SF;CT10~1 5. Statutory material to be repealed is bracketed.
19Nec•~ statutory material is underscored.
20 SEC']'lON 5. This Act, upon its appr--oval, sha7.1 take effect
21 retroacti,v~~ rc~ ~Tanuary 1, .1J96.
S83/ ;::I~1 .
•
Mir w M~w~.
AARON S.Y. CHUNG i,i;;~, Phone: (SOS) 961-8396
Courmilmember FAX: (808) 969-3291
+;c•.--=
Zh'•ue.N~~M
COUNTY COUNCIL
County of Hawaii
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 9672()
June 2, 1997
Mr. James Y. Arakaki, Chair
Hawaii County Council
Hilo, Hawaii 96720
RE: HSAC EXECUTIVE COMMITTEE MEETING - MAY 23,1997
Pursuant to Section 1(e) of Rule 4 of the Rules of Procedure of
the Council of the County of Hawaii, this written approval is
submitted in regards to Communication No. 336 relating to the
HSAC Executive Committee Meeting Minutes of May 23, 1997, waiving
said referral from the Committee on Finance in order that
approiate action can be taken by the Council at its June 18, 1997
meeting.
In reviewing the contents of the referral, it is deemed advisable
that such waiver be granted.
Aaron S.Y. Chung, Ch r
Committee on Financ
Approved:
J e Y. Arak i, Chair
Haw i County Council