HomeMy WebLinkAboutRES 693 Draft 01 2022-2024J�t-4 Of
COUNTY OF HAWAII STATE OF HAWAIII
Of
RESOLUTION NO. 693 24
A RESOLUTION APPROVING LEGISLATIVE PROPOSALS AND PRIORITIES FOR
INCLUSION IN THE 2025 HAWAI'I STATE ASSOCIATION OF COUNTIES
LEGISLATIVE PACKAGE.
WHEREAS, at its meeting on October 17, 2024, the Hawaii State Association of
Counties (HSAC) Executive Committee approved for inclusion in the 2025 HSAC Legislative
Package six proposals from the County of Hawaii, and one proposal from the County of Maui;
and
WHEREAS, at its meeting on October 17, 2024, the HSAC Executive Committee also
approved nine priorities for inclusion in the 2025 HSAC Legislative Package; and
WHEREAS, each proposal and priority must be approved by all four county councils to
be included in the 2025 HSAC Legislative Package, which will be presented to the Hawaii State
Legislature when it convenes in January 2025; and
WHEREAS, legislative proposals submitted for inclusion in the 2025 HSAC Legislative
Package are listed below, and copies of the proposed bills and resolution are attached hereto as
Exhibit A:
1. A Bill for an Act Relating to Deferred Retirement for Police (proposed by the County
of Maui),
2. A Bill for an Act Relating to the Regulation of Tobacco Products (proposed by the
County of Hawai'i),
3. A Bill for an Act Relating to the Envirom-nent (proposed by the County of Hawai'i),
4, A Bill for an Act Relating to Cesspools (proposed by the County of Hawai'i),
5. A Bill for an Act Relating to General Excise Tax (proposed by the County of
Hawai'i),
6. A Bill for an Act Relating to the Conveyance Tax (proposed by the County of
Hawai'i),
7. A Bill for an Act Relating to Housing (proposed by the County of Hawai'i); and
WHEREAS, legislative priorities submitted for inclusion in the 2025 HSAC Legislative
Package consist of legislation related to:
1. Increasing funds for emergency preparedness, evacuation routes, notification systems,
and community -level emergency planning;
2. Lowering the cost and expanding the availability of insurance for homeowners and
businesses;
3. Workforce development, particularly for green jobs and county government positions;
4. Responsible game management of wild ungulates;
5. Promoting producer responsibility for solid waste;
6. Prioritizing and increasing means and infrastructure for multi -modal transportation
and funding for safe routes to school;
7. Increasing food security and access to locally -produced food;
8. Improving public safety, expanding access to mental health resources, and
establishing community courts with necessary, comprehensive support services; and
9. Preventing and combating squatters and supporting property owners and communities
impacted by squatting; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI'I that the
legislative proposals and priorities as presented in Exhibit A are hereby approved for inclusion in
the 2025 Hawaii State Association of Counties Legislative Package.
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the President and Secretary of the Hawaii State Association of Counties.
Dated at , Hawai'i, this
COUNTY COUNCIL
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hereof adopted by the COUNCIL of the
County of Hawaii on
ATTEST:
day of
20
COUNCIL MEMBER, COT Y OF HAWAI'l
COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER
ROLL CALL VOTE
AYES NOES ABS EX
EVANS
GALIMBA
INABA
KAGIWADA
KANEALI'I-KLEINFELDER
KIERKIEWICZ
KIMBALL
LEE LOY
VILLEGAS
Reference: C-1128/GOEAC
RESOLUTION NO. 693 24
K
M I rM4 AL
104619 _ I#Waal
A BILL FOR AN ACT
RELATING TO DEFERRED RETIREMENT FOR POLICE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
I SECTION 1. The legislature finds that the recruitment and
2 retention of police officers has been difficult for counties and
3 their respective police departments. The implementation of a
4 deferred retirement option program (DROP) would incentivize
5 qualified police officers to continue working beyond the
6 requisite twenty-five years of service and to carry on
7 protecting and serving the community. DROP has been increasingly
8 utilized in many other states and municipalities as an incentive
9 for quality workers to delay retirement.
10 The purpose of this Act is to establish a deferred
11 retirement option Program for police and to provide a retention
12 tool for county police departments to incentivize qualified
13 officers who are eligible for retirement to continue working.
14 SECTION 2. Section 88-9, Hawaii Revised Statutes,, is
15 amended as follows:
16 1. By amending subsection (a) to read:
17 "(a) (A] Except for police officers enrolled in the
18 deferred retirement option program, a retirant may not be
24-073a
Page 2
I employed by the State or by any county unless the retirant is
2 reenrolled in the system pursuant to this chapter, or unless the
3 employment, without reenrollment, is authorized by this
4 section. A retirant whose employment without reenrollment in
5 the system is authorized by this section shall acquire no
6 service credit or retirement rights under this chapter with
7 respect to the employment and shall not be considered to be in
8 service
for
purposes
of this chapter,"
9 2.
By
amending
subsection (d) to read:
10 "(d) A retirant may be employed without reenrollment in the
11 system and suffer no loss or interruption of benefits provided
12 by the system or under chapter 87A if the retirant is employed:
13 (1) As an elective officer pursuant to section 88-
14 42.6(c) or as a member of the legislature pursuant to section
is 88-73(d),
16 (2) As a juror or precinct official;
17 (3) As a part-time or temporary employee excluded
18 from membership in the system pursuant to section 88-43, as a
19 session employee excluded from membership in the system pursuant
20 to section 88-54.2, as the president and chief executive officer
21 of the Hawaii tourism authority excluded from membership in the
22 system pursuant to section 201B-2, or as any other employee
Page 3
B. NO.
I expressly excluded by law from membership in the system;
2 provided that:
3 (A) The retirant was not employed by the State
4 or a county during the six calendar months prior to the first
5 day of reemployment; and
6 (B) No agreement was entered into between the
7 State or a county and the retirant, prior to the retirement of
8 the retirant, for the return to work by the retirant after
9 retirement;
10 (4) In a position identified by the appropriate
11 jurisdiction as a labor shortage or difficult -to -fill position;
12 provided that:
13 (A) The retirant was not employed by the State
14 or a county during the twelve calendar months prior to the first
15 day of reemployment;
16 (B) No agreement was entered into between the
17 State or a county and the retirant, prior to the retirement of
18 the retirant, for the return to work by the retirant after
19 retirement; and
20 (C) Each employer shall contribute to the
21 pension accumulation fund the required percentage of the rehired
Page 4 B . NO.
I retirant's compensation to amortize the system's unfunded
2 actuarial accrued liability; or
3 (5) As a teacher or an administrator in a teacher
4 shortage area identified by the department of education or in a
5 charter school or as a mentor for new classroom teachers;
6 provided that:
7 (A) The retirant was not employed by the State
9 or a county during the twelve calendar months prior to the first
9 day of reemployment;
10 (B) No agreement was entered into between the
11 State or a county and the retirant prior to the retirement of
12 the retirant, for the return to work by the retirant after
13 retirement; and
14 (C) The department of education or charter
15 school shall contribute to the pension accumulation fund the
16 required percentage of the rehired retirant's compensation to
17 amortize the system's unfunded actuarial accrued liability(-);
18 (6) As a police officer and enrolled in the deferred
19 retirement option pro aram ."
20 SECTION 3, Section 88-98, Hawaii Revised Statutes, is
21 amended as follows:
Page 5
1 "588-98 Return to service of a retirant.(a) Any retirant,
2 except a Police officer retirant enrolled in the deferred
3 retirement Option program, who returns to employment requiring
4 active membership in the system shall be reenrolled as an active
5 member of the system in the same class from which the retirant
6 originally retired and the retirant's retirement allowance shall
7 be suspended.
9 (1) If the retirant returns to service before July 1,
9 1998, and again retires, the retirant's retirement allowance
10 shall consist of.
11 (A) For members with fewer than three years of
12 credited service during the member's period of reemployment, the
13 allowance to which the member was entitled under the retirement
14 allowance option selected when the member previously retired and
15 which was suspended, plus, for the period of service during the
16 member's reemployment, the allowance to which the member is
17 entitled for that service based on the retirement allowance
19 option initially selected and computed for the member's age,
19 average final compensation, and other factors in accordance with
20 the benefit formula under section 88-74 in existence at the time
21 of the member's latest retirement; or
Page 6
-B. NO.
I (B) For members with three or more years of
2 credited service during the member's period of reemployment, the
3 allowance computed as if the member were retiring for the first
4 time; provided that in no event shall the allowance be less than
5 the amount determined in accordance with subparagraph (A); and
6 (2) If the retirant returns to service after June 30,
7 1998, and again retires, the retirant's retirement allowance
8 shall be computed in accordance with paragraph (1)(A),
9 regardless of the number of years'of service in the reemployment
10 period.
11 (b) Any retirant who received the special retirement
12 incentive benefit under Act 253, Session Laws of Hawaii 2000, as
13 amended by Act 131, Session Laws of Hawaii 2002, and is
14 reemployed by the State or a county in any capacity shall:
15 (1) Have the retirant's retirement allowance
16 suspended;
17 (2) Forfeit the special retirement incentive benefit
18 and any related benefit provided by this chapter; and
19 (3) Be subject to the age and service requirements
20 under section 88-73 when the member again retires.
Page 7
B. NO.
I (c) If a retirant's maximum retirement allowance upon the
2 retirant's initial
retirement
was subject to the limits on
3 maximum retirement
allowance
under section 88-74:
4 (1) The
limit shall
apply to the computation of the
5 retirant's maximum
retirement
allowance for the retirant's
6 period of service during the
retirant's reemployment, so that
7 the sum of:
8 (A) The per cent by which the retirant's average
9 final comoensation for the retirant's years of service prior to
10 the retirant's initial retirement is multiplied to determine the
11 retirant's maximum retirement allowance upon the retirant's
12 initial retirement, and
13 (B) The per cent by which the retirant's average
14 final compensation for any period of reemployment after the
15 retirant's initial retirement is multiplied to determine the
16 retirant's maximum retirement allowance for the period of
17 reemployment, shall not exceed the limit, under section 88-74,
18 on the per cent by which the retirant's average final
19 compensation may be multiplied for the purpose of determining
20 the retirant's maximum retirement allowance. For example, if a
21 retirant's maximum retirement allowance upon the retirant's
22 initial retirement was limited by section 88-74 to eighty per
Page 8
B. NO.
I cent of the retirant's average final compensation, and the
2 retirant retired with a maximum allowance equal to seventy per
3 cent of the retirant's average final compensation, the
4 retirant's maximum allowance for the retirant's period of
5 reemployment may not exceed ten per cent of the retirant's
6 average final compensation for the retirant's period of
7 reemployment; and
8 (2) If the retirant's maximum retirement allowance
9 upon the retirant's initial retirement was equal to or greater
10 than the applicable limit under section 88-74, the retirant
11 shall not earn service credit or earn any additional retirement
12 allowance during the retirant's period of reemployment, and the
13 reemployed retirant shall not make any contributions under
14 section 88-45.
Is (d) If a retirant's designation of beneficiary was
16 irrevocable upon the retirant's initial retirement, the retirant
17 may not change the retirant's designated beneficiary when the
18 retirant returns to service or when the former retirant again
19 retires.
20 (e) A retirant who returns to service shall not be
21 considered to be "in service", for the purposes of section 88-
22 75, 88-79, 88-84, or 88-85, or any other provision of this
•
I chapter
providing
for
benefits
arising out
of
the disability or
2 death of
a member.
A
retirant
who returns
to
service and dies
3 during the period of reemployment shall be considered to have
4 retired again effective as of the first day of the month
5 following the month in which the death occurs, except for death
6 during the month of December when the effective date of
7 retirement may be the last day of the month.
9 (f) There is a deferred retirement option program for
9 Police officers. A police officer who has reached the service
10 requirements for normal retirement is eligible to enter the
11 deferred retirement option program. Once enrolled in the
12 deferred retirement option program, the enrollee's service and
13 benefit levels are locked as of the effective date of
14 enrollment. Pension payments for deferred retirement option
is program enrollees will be deposited to a deferred retirement
16 option program account each month with investment earnings or
17 losses at a rate equal to the pension plan's actual investment
18 return, net of investment expenses, and will be paid upon
19 termination from the program in accordance with rules adopted by
20 the board. Police officers enrolled in the deferred retirement
21 option program must enroll within twelve months of eligibility
22 for normal retirement. Enrollees may participate for a maximum
I of one
hundred twenty months as
long as their
tenure does not
2 exceed
thirty-five total years
Enrollment in
the deferred
3 retirement Option program
will cease
ifanenrollee is unable to
4 continue as an active
police officer
forlonger than twenty
5 working days excluding
vacation days .
Deferred retirement option
6 program enrollees do
not pay into the
retirement system.
7 Deferred retirement option program enrollees accrue sick and
8 vacation leave credits. Vacation leave credits will be paid into
9 the enrollee's deferred retirement _option _program account upon
10 termination from the program. Sick leave credits will not be
11 paid upon termination and will not count toward any retirement
12 payments. Deferred retirement option participants will receive
13 healthcare benefits as retirees Upon participation in deferred
14 retirement option program the member is deemed a retiree of the
15 pension fund deferred retirementption program participants
16 will not receive a disability benefit from the pension plan
17 since then are already retired No additional service credit
IS will accrue. Deferred retirement option program enrollees are
19 not eligible for deferred compensation.
20 (+f-*1(9) The board shall adopt any rules as may be required
21 to administer this section."
Page 11
I SECTION 4. Statutory material to be deleted is bracketed
2 and in strikethrotigh. New statutory material is underscored.
3 SECTION 5. This Act shall take effect upon its approval.
4
5 INTRODUCED BY:
6 paf;mkm:24-073a
REVISED:
I ST DRAFT DATE:
.B. NO.
RELATING TO THE REGULATION OF TOBACCO PRODUCTS.
BE IT EXACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1
2 SECTION 1. The legislature finds that tobacco use remains the
3 leading cause of preventable death in the United States and in
4 Hawaii. Recent years have brought a precipitous increase in
5 consumer sales of electronic smoking devices, sometimes called
6 "vapes", and one inhalation of these products can contain many
7 times more nicotine than a conventional cigarette. Electronic
8 smoking devices have played a major role in increased rates of
9 youth nicotine addiction, which had been previously on the
10 decline.
11
12 This increased youth tobacco prompted Hawaii to adopt laws to
13 increase the smoking age to 21 years old, and treat electronic
14 cigarettes in the same manner as the state treats conventional
15 cigarettes for purposes of clean indoor air laws. The state and
16 the County of Hawaii, County of Maui, and City and County of
17 Honolulu have also adopted policies to ban smoking - including
18 electronic cigarette use - at state and county beaches and
19 parks.
20
21 In 2018, in order to ensure uniform regulation's on tobacco
22 sales, the legislature passed Act 206, which, in part, declared
23 the sale of cigarettes, tobacco products, and electronic smoking
24 devices a matter of statewide concern, and nullified any
25 existing local ordinances or policies that restricted the'sale
26 of these products. However, the legislature finds that since the
27 Act's passage, youth tobacco use has continued to increase to
28 epidemic levels. According to the 2019 Hawaii Youth Risk
29 Behavior Survey, thirty-one per cent of middle school students
30 and forty-eight per cent of public high school students had
31 tried electronic smoking devices. The 2019 Hawaii Youth Risk
32 Behavior Survey also indicates that eighteen per cent of middle
33 school students and thirty-one per cent of high school students
34 currently vape.
35
36 The legislature further finds that in order to end this youth
37 vaping epidemic, the state must work in concert with youth,
38 parents, and educational institutions, and laws must be changed
39 at all levels of government to establish reasonable restrictions
40 on the sale.of and access to these addictive products.
41
42 Accordingly, the purpose of this Act is to reauthorize the
43 counties to enact restrictions of the sales of tobacco products,
44 including electronic smoking devices, by inserting a sunset date
45 into Act 206, Session Laws of Hawaii 2018.
46
47
48 SECTION 2. Section §328J-11.5, Hawaii Revised Statutes, is
49 repealed.
50
51 (Statemkde (a) Sales of elqaEettes, tebaeee pEeduets,
52 and eleetvenle smeleing eleviees are a statewide eeneern, it
53 �Ifte _44-0-ge-PAE of 4-Afte leeJlslatiare to regulate —tote -sale --of
64 elgarettes, tebaeee preeleets, and eleet"aie emeleing deviees
55 a ttniferm and ejeeltiel
56 (b) All leeal ere6nanees at regulations that regialate
57 the sale of eigarettes, tobaeee pree6ets, anel eleetrenle smeking
58 deviees are pfeempteel, and effisting leeal laws and reqttlatle
59 ee%f9:4:et!ag with this shapteLe aFe n;all aftel veld.
60 (e) in this ehapteE shall be eeftstEued to
61 limit a eeuatyle autheElty tinder- seetlea a28j 16.1
62
63 SECTION 3. Statutory material to be repealed is bracketed and
64 stricken.
65
66 SECTION 4. This Act shall take effect upon approval.
A BILL FOR AN ACT
RELATING TO THE ENVIRONMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII;
SECTION 1. The legislature finds that protecting the
2 State's nearshore waters is important for ecosystem resilience
3 and public health. Clean nearshore waters, free of pollutants,
4 help support the coral reef systems that are critical to
5 Hawaii's fisheries. A 2023 study published in the scientific
6 journal Nature found that coral reefs that are protected
from
7 land -based pollutants, especially wastewater
pollutants,
are
8 better able to recover from ocean warming events.
9 Accordingly, the purpose of this Act is to require newly
10 installed or modified individual wastewater systems that are
11 near the shoreline, or likely to pollute groundwater, to include
12 denitrification capacity.
13 SECTION 2. Chapter 342D, Hawaii Revised Statutes, is
14
amended by
adding
a new section to part III to be appropriately
15
designated
and to
read as follows:
Page 2
MV� •
1 "5342D- Individual wastewater systems; denitrification
2 capacity. (a) Each individual wastewater system that is newly
3 installed or modified shall have denitrification capacity if:
4 (1) The wastewater system is located two hundred feet or
less from a shoreline; or
6 (2) The wastewater system is located at or below one
7 thousand five hundred feet above sea level and:
8 (A) The substrate is less than five thousand years
9 old; an
10
(B) The soil has low
nutrient holding
capacity, low
11
shrink and swell
characteristics,
and very fast
12
water permeability,
based on the
Hawaii soil
13 atlas.
14 (b) For the purposes of this section, "denitrification
15 capacity" means being certified to meet the guidelines of the
16 National Sanitation Foundation/American National Standards
17 Institute standard 245 for on -site residential wastewater
18 treatment."
19 . SECTION 3. New statutory material is underscored.
20 SECTION 4. This Act shall take effect on July 1, 2050.
2
Report Title;
Environment; Individual Wastewater Systems; Nearshore Waters;
Denitrification Capacity
Description:
Requires newly installed or modified individual wastewater
systems that are near the shoreline, or likely to pollute
groundwater, to include denitrification capacity. Takes effect
7/l/2050.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO CESSPOOLS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the health of
2 Hawaii's people and quality of Hawaii's waters are being harmed
3 by pollution from cesspools. Hawaii has more than eighty
4 thousand cesspools that discharge about fifty million gallons of
5 wastewater into the State's groundwater every day. Cesspools
6 are antiquated, substandard systems that damage public health;
7 pollute drinking water; and lower water quality in streams,
8 ground waters, nearshore marine areas, and the ocean. Cesspool
9 pollution also harms public recreation and the precious coral
10 reefs on which Hawaii's economy, shoreline, fisheries, and
11 native species depend.
12 The purpose of this Act is to implement various
13 recommendations of the working group established by Act 132,
14 Session Laws of Hawaii 2018, including:
Page 2
1 (1) Accelerating the dates for required upgrades,
2 conversions, or connections of:
3 (A) The 13,821 priority level 1 cesspools in the
4 State to 2035, with certain exceptions; and
5 (B) The 12,367 priority level 2 cesspools in the
6 State to 2040;
7 (2) Appropriating funds to provide financing assistance
8 via the cesspool compliance pilot grant project
9 established pursuant to Act 153, Session Laws of
10 Hawaii 2022; and
11 (3) Establishing a cesspool upgrade, conversion, or
12 connection income tax credit.
13 PART II
14 SECTION 2. Chapter 342D, Hawaii Revised Statutes, is
15 amended by adding a new section to be appropriately designated
16 and to read as follows:
17 11§342D- - Cesspools; mandatory upgrade, conversion, or
18 connection; priority level 1; priority level 2. (a) Every
19 cesspool in the State categorized as priority level 1 according
20 to the University of Hawaii's Hawaii cesspool prioritization
21 tool shall be:
Page 3 NO.
1 (1) Upgraded or converted to a director -approved
2 wastewater system; or
3 (2) Connected to a sewerage system,
4 before January 1, 2035; provided that priority level 1
5 cesspools on recreational residence leases within the Kokee
6 state park and Waimea Canyon state park on the island of Kauai
7 shall be upgraded, converted, or connected before January 1,
8 2040.
9 (b) Every cesspool in the State designated as priority
10 level 2 according to the University of Hawaii's Hawaii cesspool
11 prioritization tool shall be:
12 (1) Upgraded or converted to a director -approved
13 wastewater system; or
14 (2) Connected to a sewerage system,
15 before January 1, 2040.
16 -(c) The director may grant an exemption from the
17 requirements of subsections (a) and (b) to the property owner of
18 a cesspool who applies for an exemption and presents
19 documentation showing a legitimate reason that makes it
20 infeasible to upgrade, convert, or connect the cesspool. For
1 the purposes of this subsection, a legitimate reason shall
2 include but not be limited to:
3 (1) Small lot size;
4 (2) Steep topography;
5 (3) Poor soils;
6 (4) Accessibility issues; or
7 (5) A planned development of sewerage upgrades to an area.
8 (d) The department may grant extensions of up to five
9 years at a time from the requirements of subsections (a) and (b)
10 based on demonstration of financial inability to pay for or
11 finance a cesspool u-Darade, conversion, or connection; provided
12 that the department of health may adopt rules pursuant to
13 chapter 91 necessary to effectuate the purposes of this
14 subsection.
15 -(e) Notwithstanding any law to the contrary, no penalty or
16 other assessment for any violation of this section shall
17 constitute a lien on the real property. Notwithstanding any law
18 to the contrarv, no seizure of real property shall be authorized
19 for any violation of this section.
20 -(f) As used in this section, "cesspool" has the same
21 meaninq as in section 342D-72."
Page 5 NO.
1 SECTION 3. Section 342D-72, Hawaii Revised Statutes, is
2 amended by amending subsection (a) to read as follows:
3 "(a) [Bef-eice] Except as otherwise provided in section
4 342D- , before January 1, 2050, every cesspool in the State,
5 excluding cesspools granted exemptions by the director of health
6 pursuant to subsection (b), shall be:
7 (1) Upgraded or converted to a director -approved
8 wastewater system; or
9 (2) Connected to a sewerage system."
10 PART III
11 SECTION 4. There is appropriated out of the general
12 revenues of the State of Hawaii the sum of $ or so
13 much thereof as may be necessary for fiscal year 2025-2026 to
14 implement the cesspool compliance pilot grant project
15 established pursuant to Act 153, Session Laws of Hawaii 2022.
16 The sum appropriated shall be expended by the department of
17 health for the purposes of this part.
18 SECTION 5. In accordance with section 9 of article VII of
19 the Hawaii State Constitution and sections 37-91 and 37-93,
20 Hawaii Revised Statutes, the legislature has determined that the
21 appropriations contained in H.B. No. , will cause the state
Page 6 NO.
I general fund expenditure ceiling for fiscal year 2025-2026 to be
2 exceeded by $ or per cent. In addition, the
3 appropriation contained in this Act will cause the general fund
4 expenditure ceiling for fiscal year 2025-2026 to be further
5 exceeded by $ or per cent. The combined total
6 amount of general fund appropriations contained in only these
7 two Acts will cause the state general fund expenditure ceiling
8 for fiscal year 2024-2025 to be exceeded by
9 $ or per cent. The reasons for exceeding the
10 general fund expenditure ceiling are that:
11 (1) The appropriation made in this Act is necessary to
12 serve the public interest; and
13 (2) The appropriation made in this Act meets the needs
14 addressed by this Act.
15
PART IV
16
SECTION
6. Chapter 235, Hawaii Revised
Statutes, is
17
amended by
adding a new section to part I to
be appropriately
18
designated
and to read as follows:
19
11§235-
Cesspool upgrade, conversion,
or connection;
20
income tax
credit. (a) There shall be allowed to each taxpayer
21
subject to
the tax imposed under this chapter
a cesspool
Page 7
1 upgrade, conversion, or connection income tax credit that shall
2 be deductible from the tax-oaver's net income tax liability, if
3 any, imposed by this chapter for the taxable year in which the
4 credit is properly claimed.
5 (b) In the case of a partnership, S corporation, estate,
6 or trust, the tax credit allowable is for qualified expenses
7 incurred by the entity for the taxable year. The expenses upon
8 which the tax credit is com-outed shall be determined at the
9 entity level. Distribution and share of credit shall be
10 determined by rule.
11 -(c) The cesspool upgrade, conversion, or connection income
12 tax credit shall be equal to the qualified expenses of the
13 taxpayer, up to a maximum of $10,000; provided that, in the case
14 of a qualified cesspool that is a residential large capacity
15 cesspool, the amount of the credit shall be equal to the
16 qualified expenses of the taxpayer, up to a maximum of $10,000
17 per residential dwelling connected to the cesspool, as certified
18 by the department of health pursuant to subsection (e). There
19 shall be allowed a maximum of one cesspool upgrade, conversion.
20
or connection income tax credit
per qualified cesspool.
The
21
cesspool upgrade, conversion, or
connection income tax
credit
Page 8 NO.
1 shall be available only for the taxable year in which the
2
taxpayer's qualified expenses are certified by the department of
3
health.
4
(d)
The total amount of tax credits allowed under this
5
section
shall not exceed $ for all taxpayers in any
6
taxable
year; provided that any taxpayer who is not eligible to
7
claim the
credit in a taxable year due to the $ cap
8
being reached for that taxable year shall be eligible to claim
9
the credit in the subsequent taxable year.
10
-(e)
The department of health shall:
11
(1)
Certify all qualified cesspools for the purposes of
12
this section;
13
(2)
Collect and maintain a record of all qualified
14
expenses certified by the department of health for the
15
taxable year; and
16
(3)
Certify to each taxpayer the amount of credit the
17
taxpayer may claim; provided that if, in any year, the
18
annual amount of certified credits reaches
19
$ in the aggregate, the department of health
20
shall immediately discontinue certifying credits and
21
notifv the department of taxation.
Page 9 NO.
1 The director of health may adopt rules under chapter 91 as
2 necessary to implement the certification requirements under this
3 section.
(f) The director of taxation:
5 (1) Shall prepare any forms that may be necessary to claim
6 a tax credit under this section;
7 (2) May require the taxpayer to furnish reasonable
8 information to ascertain the validity of the claim for
the tax credit made under this section; and
10 (3) May adopt rules under chapter 91 necessary to
11 effectuate the -ouriDoses of this section.
12 (q) If the tax credit under this section exceeds the
13 taxpayer's income tax liability, the excess of the credit over
14 liability may be used as a credit against the taxpayer's income
15 tax liability in subsequent years until exhausted. All claims
16 for the tax credit under this section, including amended claims,
17 shall be filed on or before the end of the twelfth month
18 following the close of the taxable vear for which the credit may
19 be claimed. Failure to comply with the foregoing provision
20 shall constitute a waiver of the right to claim the credit.
21 -(h) As used in this section:
i�
NO.
1 "Cesspool" has the same meaning as in section 342D-72.
2 "Qualified cesspool" means a cesspool that is:
3 (1) Certified by the department of health to be:
4 (A) Located within a priority level 1 or 2 area
accordinq to the University of Hawaii's 2022
6 Hawaii cesspool hazard assessment and
7 prioritization tool; or
8 (B) A residential large capacity cesspool; or
9 (2) Certified by a county or private sewer company to be
10 appropriate for connection to its existing sewerage
11 system.
12 "Qualified expenses" means costs that are necessary and
13 directly incurred by the taxpayer for upgrading or converting a
14 qualified cesspool to a director of health -approved wastewater
15 system, or connecting a qualified cesspool to a sewerage system,
16 and that are certified as such by the department of health.
17 "Residential large capacity cesspool" means a cesspool that
18 is connected to more than one residential dwellin
19 "Sewerage system" has the same meaning as in
20 section 342D-1.
21 "Wastewater" has the same meanina as in section 342D-1."
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Page 11 NO.
SECTION 7. Section 23-92, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:
"1(c) This section shall apply to the following:
(1) Sections 235-12.5 and 241-4.6--Credit for renewable
energy technology system installed and placed in
service in the State. For the purpose of section 23-
91(b)(5), this credit shall be deemed to have been
enacted for an economic benefit; [e7nd]
(2) Section 235-17--Credit for qualified production costs
incurred for a qualified motion picture, digital
media, or film production[—.]; and
(3) Section 235- --Credit for cesspool upgrade,
conversion, or connection._"
SECTION 8. Section 23-94, Hawaii Revised Statutes, is
15 amended by amending subsection (c) to read as follows:
16 "(c) This section shall apply to the following:
17 (1) Section 235-4.5(a)--Exclusion of intangible income
18 earned by a trust sited in this State;
19 (2) Section 235-4.5(b)--Exclusion of intangible income of
20 a foreign corporation owned by a trust sited in this
21 State;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Page 12
(3) Section 235-4.5(c)--Credit to a resident beneficiary
of a trust for income taxes paid by the trust to
another state;
(4) Sections 235-55 and 235-129--Credit for income taxes
paid by a resident taxpayer to another jurisdiction;
(5) Section 235-71(c)--Credit for a regulated investment
company shareholder for the capital gains tax paid by
the company;
(6) Section 235-110.6--Credit for fuel taxes paid by a
commercial fisher;
(7) Section 235-110.93--Credit for important agricultural
land qualified agricultural cost;
[+8+ Seetien 2�35-110. 94 Gredit fer er-gand:eally pnreeltiee
agr±ezaltufal pi-eduets;
+9+1 (8) Section 235-129(b)--Credit to a shareholder of an
S corporation for the shareholder's pro rata share of
the tax credit earned by the S corporation in this
State; and
[(10)] (9) Section 209E-10--Credit for a qualified business
in an enterprise zone; provided that the review of
Page 13 NO.
1
this credit pursuant to this part shall be limited in
2
scope to income tax credits."
3
SECTION
9. Section 23-95, Hawaii Revised Statutes, is
4
amended by
amending subsection (c) to read as follows:
5
'1(c)
This section shall apply to the following:
6
(1)
Section 235-5.5--Deduction for individual housing
7
account deposit;
8
(2)
Section 235-7(f)--Deduction of property loss due to a
9
natural disaster;
10
235-16.5--Gicedit fer
Seetien eesspeel apgrade,
11
eenveEs±en, eic eeflneetien;
12
4-4+1
(3) Section 235-19--Deduction for maintenance of an
13
exceptional tree;
14
(4) Section 235-55.91--Credit for the employment of a
15
vocational rehabilitation referral;
16
[+6+1
(5) Section 235-110.2--Credit for in -kind services
17
contribution for public school repair and maintenance;
18
and
19
[+7+1
(6) Sections 235-110.8 and 241-4.7--Credit for
20
ownership of a qualified low-income housing building."
21
PART V
1 SECTION 10.
Statutory material
to be repealed is bracketed
2 and stricken. New
statutory material
is underscored.
3 SECTION 11.
This Act shall take
effect upon its approval;
4 provided that:
5 (1) Section
4 shall take effect
on July 1, 2025; and
6 (2) Part IV
shall apply to taxable
years beginning after
7 December 31, 2024.
8
REVISED:
1 ST DRAFT DATE:
A BILL FOR AN ACT
RELATING TO GENERAL EXCISE TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The Legislature hereby finds the need to extend
2 the county surcharge on state general excise and use taxes,
3 which was enacted by Act 247, Session Laws of Hawaii 2005
4 (Surcharge).
5
6 SECTION 2. Section 46-16.8, Hawaii Revised Statutes, is
7 amended to read as follows:
8 "§46-16.8 County surcharge on state tax.(a) Each county
9 may establish a surcharge on state tax at the rates enumerated
10 in sections 237-8.6 and 238-2.6. A county electing to establish
11 this surcharge shall do so by ordinance; provided that:
12 (1) No ordinance shall be adopted until the county
13 has conducted a public hearing on the proposed ordinance;
14 (2) The ordinance shall be adopted before December
15 31, 2005; and
16 (3) No county surcharge on state tax that may be
17 authorized under this subsection shall be levied before January
XXX- 0 0
Page 2
.B. NO.
18 1, 2007, or after December 31, 2022, unless extended pursuant to
19 subsection (b).
20 Notice of the public hearing required under paragraph (1)
21 shall be published in a newspaper of general circulation within
22 the county at least twice within a period of thirty days
23 immediately preceding the date of the hearing.
24 A county electing to exercise the authority granted
25 under this subsection shall notify the director of taxation
26 within ten days after the county has adopted a surcharge on
27 state tax ordinance and, beginning no earlier than January 1,
28 2007, the director of taxation shall levy, assess, collect, and
29 otherwise administer the county surcharge on state tax.
30 (b) Each county that has established a surcharge on
31 state tax before July 1, 2015, under authority of subsection (a)
32 may extend the surcharge until December 31, [2939]2045, at the
33 same rates. A county electing to extend this surcharge shall do
34 so by ordinance; provided that:
35 (1) No ordinance shall be adopted until the county
36 has conducted a public hearing on the proposed ordinance; and
37 (2) The ordinance shall be adopted before January 1,
38 [201:8]2028.
Page 3
OBN NO.
39 A county electing to exercise the authority granted
40 under this subsection shall notify the director of taxation
41 within ten days after the county has adopted an ordinance
42 extending the surcharge on state tax. The director of taxation
43 shall levy, assess, collect, and otherwise administer the
44 extended surcharge on state tax.
45 (c) Each county that has not established a surcharge
46 pursuant to subsection (a) on state tax before July 1, 2015, may
47 establish the surcharge at the rates enumerated in sections 237-
48 8.6 and 238-2.6. A county electing to establish this surcharge
49 shall do so by ordinance; provided that:
50 (1) No ordinance shall be adopted until the county
51 has conducted a public hearing on the proposed ordinance;
52 (2) The ordinance shall be adopted before December
53 31, 2023; and
54 (3) No county surcharge on state tax that may be
55 authorized under this subsection shall be levied before January
56 1, 2019, or after December 31, [2030]2045.
57 A county electing to exercise the authority granted
58 under this subsection shall notify the director of taxation
59 within ten days after the county has adopted a surcharge on
60 state tax ordinance. Beginning on January 1, 2019, January 1,
Page 4
61 2020, January 1, 2024, or January 1, 2025, as applicable
62 pursuant to sections 237-8.6 and 238-2.6, the director of
63 taxation shall levy, assess, collect, and otherwise administer
64 the county surcharge on state tax.
65 (d) Each county that has established a surcharge on
66 state tax before March 31, 2019, under subsection (a) or (c) may
67 amend the surcharge ordinance to change the authorized uses of
68 surcharge revenues, pursuant to subsection (g); provided that:
69 (1) No ordinance shall be amended pursuant to this
70 section until the county has conducted a public hearing on the
71 proposed amendment; and
72 (2) The ordinance shall be amended before December
73 31, 2023.
74 (e) Notice of the public hearing required under
75 subsection (b), (c), or (d), before adoption or amendment of an
76 ordinance establishing or extending the surcharge on state tax
77 shall be published in a newspaper of general circulation within
78 the county at least twice within a period of thirty days
79 immediately preceding the date of the hearing.
80 (f) Each county with a population greater than five
81 hundred thousand that adopts or extends a county surcharge on
82 state tax ordinance pursuant to subsection (a) or (b) shall use
XXX-00
Page 5
83 the surcharge revenues received from the State for capital costs
84 of a locally preferred alternative for a mass transit project;
85 provided that revenues derived from the county surcharge on
86 state tax shall not be used:
87 (1) To build or repair public roads or highways,
88 bicycle paths, or support public transportation systems already
89 in existence before July 12, 2005;
90 (2) For operating costs or maintenance costs of the
91 mass transit project or any purpose not consistent with this
92 subsection; or
93 (3) For administrative or operating, marketing, or
94 maintenance costs, including personnel costs, of a rapid
95 transportation authority charged with the responsibility for
96 constructing, operating, or maintaining the mass transit
97 project; provided further that nothing in this section shall be
98 construed to prohibit a county from using county funds that are
99 not derived from a surcharge on state tax for a purpose
100 described in paragraph ( 2 ) or (3).
101 (g) Each county having a population equal to or less
102 than five hundred thousand that adopts a county surcharge on
103 state tax ordinance pursuant to this section shall use the
104 surcharges received from the State for:
XXX- 0 0
Page 6
NBN NO.
105 (1) Operating or capital costs of public
106 transportation within each county for public transportation
107 systems, including:
108 (A) Public roadways or highways;
109 (B) Public buses;
110 (C) Trains;
ill (D) Ferries;
112 (E) Pedestrian paths or sidewalks; or
113 (F) Bicycle paths;
114 (2) Expenses in complying with the Americans with
115 Disabilities Act of 1990 with respect to paragraph (1); and
116 (3) Housing infrastructure; provided that a county
117 that uses surcharge revenues for housing infrastructure shall
118 not pass on those housing infrastructure costs to the developer
119 of a hous in g pro j ect [ - pi-evided fidE4cheE t-ha4E4�"j:s jq a
120 sliall apply enly if a eeianty afftended its surehar-ge erdinane
121 pidi-sidant te sidbseetlen (d) er adepts a eeanty s'dr-ehar-Ele en state
122 tax er-dinanee af-4eiF Deeeffiber 31, 2022; previded that eaeh eeunty
123 hai4ng a pejaiilatien eepaal te er less than fi-�,e hunelred theidsand
124 that aelepts a eeidnty sureharge en state tax erelinanee p:arsidant
125 to this seetien after Beeember 31, 2922, shall its the sidrehar-ge
XXX- 0 0
Page 7
126 revenues reeeived frem the State enly fer the purigeses deseribed-
127 in paragraph (3) ] .
128 (h) As used in this section:
129 "Capital costs" means nonrecurring costs required to
130 construct a transit facility or system, including debt service,
131 costs of land acquisition and development, acquiring of rights-
132 of -way, planning, design, and construction, and including
133 equipping and furnishing the facility or system. For a county
134 with a population greater than five hundred thousand, capital
135 costs also include non -recurring personal services and other
136 overhead costs that are not intended to continue after
137 completion of construction of the minimum operable segment of
138 the locally preferred alternative for a mass transit project.
139 "Housing infrastructure" includes pedestrian paths or
140 sidewalks on a county road near or around a public school, and
141 water, drainage, sewer, water reuse, waste disposal, and waste
142 treatment systems that connect to the infrastructure of the
143 county."
144 SECTION 3. Section 237-8.6, Hawaii Revised Statutes, is
145 amended to read as follows:
146 §237-8.6 County surcharge on state tax;
147 administration. (a) The county surcharge on state tax, upon the
XXX_ 0 0
148 adoption of county ordinances and in accordance with the
149 requirements of section 46-16.8, shall be levied, assessed, and
150 collected as provided in this section on all gross proceeds and
151 gross income taxable under this chapter. No county shall set
152 the surcharge on state tax at a rate greater than one-half per
153 cent of all gross proceeds and gross income taxable under this
154 chapter. All provisions of this chapter shall apply to the
155 county surcharge on state tax. With respect to the surcharge,
156 the director of taxation shall have all the rights and powers
157 provided under this chapter. In addition, the director of
158 taxation shall have the exclusive rights and power to determine
159 the county or counties in which a person is engaged in business
160 and, in the case of a person engaged in business in more than
161 one county, the director shall determine, through apportionment
162 or other means, that portion of the surcharge on state tax
163 attributable to business conducted in each county.
164 (b) Each county surcharge on state tax that may be
165 adopted, extended, or amended pursuant to section 46-16.8 shall
166 be levied beginning in a taxable year after the adoption of the
167 relevant county ordinance; provided that no surcharge on state
168 tax may be levied:
169 (1) Before:
Page 9
M-00-A o N
170 (A) January 1, 2007, if the county surcharge on
171 state tax was established by an ordinance adopted before
172 December 31, 2005;
173 (B) January 1, 2019, if the county surcharge on
174 state tax was established by the adoption of an ordinance after
175 June 30, 2015, but before June 30, 2018;
176 (C) January 1, 2020, if the county surcharge on
177 state tax was established by the adoption of an ordinance on or
178 after June 30, 2018, but before March 31, 2019;
179 (D) January 1, 2024, if the county surcharge on
180 state tax was established by the adoption of an ordinance on or
181 after March 31, 2019, but before August 1, 2023; or
182 (E) January 1, 2025, if the county surcharge on
183 state tax was established by the adoption of an ordinance on or
184 after August 1, 2023, but before December 31, 2023; and
185 (2) After December 31, []2045.
186 (c) The county surcharge on state tax, if adopted,
187 shall be imposed on the gross proceeds or gross income of all
188 written contracts that require the passing on of the taxes
189 imposed under this chapter; provided that if the gross proceeds
190 or gross income are received as payments beginning in the
191 taxable year in which the taxes become effective, on contracts
► i�
Page 10
M�
192 entered into before June 30 of the year prior to the taxable
193 year in which the taxes become effective, and the written
194 contracts do not provide for the passing on of increased rates
195 of taxes, the county surcharge on state tax shall not be imposed
196 on the gross proceeds or gross income covered under the written
197 contracts. The county surcharge on state tax shall be imposed
198 on the gross proceeds or gross income from all contracts entered
199 into on or after June 30 of the year prior to the taxable year
200 in which the taxes become effective, regardless of whether the
201 contract allows for the passing on of any tax or any tax
202 increases.
203 (d) No county surcharge on state tax shall be
204 established on any:
205 (1) Gross income or gross proceeds taxable under this
206 chapter at the one-half per cent tax rate;
207 (2) Gross income or gross proceeds taxable under this
208 chapter at the 0.15 per cent tax rate; or
209 (3) Transactions, amounts, persons, gross income, or
210 gross proceeds exempt from tax under this chapter.
211 (e) The director of taxation shall revise the general
212 excise tax forms to provide for the clear and separate
XXX-00
Page 11
213 designation of the imposition and payment of the county
214 surcharge on state tax.
215 (f) The taxpayer shall designate the taxation
216 district to which the county surcharge on state tax is assigned
217 in accordance with rules adopted by the director of taxation
218 under chapter 91. The taxpayer shall file a schedule with the
219 taxpayer's periodic and annual general excise tax returns
220 summarizing the amount of taxes assigned to each taxation
221 district.
222 (g) The penalties provided by section 231-39 for
223 failure to file a tax return shall be imposed on the amount of
224 surcharge due on the return being filed for the failure to file
225 the schedule required to accompany the return. In addition,
226 there shall be added to the tax an amount equal to ten per cent
227 of the amount of the surcharge and tax due on the return being
228 filed for the failure to file the schedule or the failure to
229 correctly report the assignment of the general excise tax by
230 taxation district on the schedule required under this
231 subsection.
232 (h) All taxpayers who file on a fiscal year basis
233 whose fiscal year ends after December 31 of the year prior to
234 the taxable year in which the taxes become effective, shall file
XXX- 0 0
Page 12
EBE NON
235 a short period annual return for the period preceding January 1
236 of the taxable year in which the taxes become effective. Each
237 fiscal year taxpayer shall also file a short period annual
238 return for the period starting on January 1 of the taxable year
239 in which the taxes become effective, and ending before January 1
240 of the following year.
241 SECTION 4. Statutory material to be repealed is bracketed
242 and stricken. New statutory material is underscored.
243 SECTION 5. This Act shall take effect upon its approval.
244
245
246 INTRODUCED BY:
247 BY REQUEST
248
XXX- 0 0
Page 13
Report Title:
[Click here and type Report Title (1 line limit)]
Description:
[Click here and type Description (5 line limit)]
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
xxx-00
RELATING TO THE CONVEYANCE TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the health,
happiness, and well-being of Hawaii's people depends on the
State's ability to address the high cost of living, particularly
the high cost of housing, that is fueling the homelessness
crisis and forcing local families to move out of the State. The
sustainability of the State's unique and irreplaceable natural
resources is critical to its residents' quality of life. To
address these problems and secure a prosperous future for the
State's children, greater investment into public resources from
a sustainable revenue source is needed to reduce the cost of
housing for residents, preserve the State's natural resources,
and provide solutions for community members experiencing
houselessness.
The legislature also finds that the conveyance tax, a one-
time tax at the time of real property sales, is an appropriate
revenue source for affordable housing, land conservation, and
homeless services. Although housing prices in the State have
risen dramatically over the past thirteen years, the State's
conveyance tax rates have not been updated since Act 59, Session
Laws of Hawaii 2009. Presently, the State's conveyance tax is
significantly lower than the rates of other high -cost areas in
the country.
Cities across the country are increasing their conveyance
tax rates to fund affordable housing. San Francisco increased
the tax rate to 5.5 per cent on homes valued over $10,000,000 in
2020, and two years ago Los Angeles increased the real property
transfer tax to 4.5 per cent on any residential or commercial
property over $5,000,000 in value and six per cent on property
sales over $10,000,000 in value. Smaller cities with high
housing costs are also increasing the taxes on real estate sales
to mitigate the impacts of housing costs. Crested Butte and
Telluride in Colorado, which attract wealthy buyers due to
access to world class ski opportunities, have a tax of three per
cent on home sales regardless of price. Aspen, Colorado, which
has the most well -developed workforce housing program in the
country where almost forty per cent of the housing total housing
stock is reserved as permanently affordable housing for full-
time residents, has largely funded their workforce housing
program through a 1.5 per cent tax on property sales that has
been in place since 1989.
Presently, it is common practice to tax property sales as a
means to mitigate the impacts of high home costs and the loss of
land due to housing development. Furthermore, a conveyance tax
of 0.5 per cent on homes valued at less than $5,000,000, a rate
of four per cent on homes valued between $5,000,000 and
$10,000,000, and six per cent on homes valued at over
$10,000,000 conforms to tax rates that other cities are
assessing to fund their various housing programs.
The legislature additionally finds that increases in tax
rates on homes over $5,000,000 is unlikely to have any negative
impact on local full-time residents as the vast majority of
buyers who purchase these homes do so as an investment and not
as their full-time residence. The monthly mortgage costs of a
$5,000,000 home are approximately $32,600 a month, which would
be considered affordable for an individual or a couple earning
$81,500 per month, or roughly $978,000 a year. Very few
families in Hawaii would fall within these income categories,
and those that do most likely already own a home and are not
impacted by rising rents or the lack of affordable
housing. Accordingly, it is appropriate for out-of-state
investors of real estate to assist in mitigating the impacts for
residents who are not benefiting from the current market
dynamics. Renters, houseless residents, and the local workforce
are struggling with the rising cost of housing, thus a tax on
real estate at the time of sale to help mitigate those costs is
appropriate and fair.
The legislature recognizes that the increases in housing
prices, residential rent, and the homeless population over the
past several years has accelerated the urgent need to
sustainably fund affordable housing and homeless services in
Hawaii. The 2023 point in time count estimates that there are
currently 6,223 individuals living unsheltered in the State, not
including the greater number of "hidden homeless" individuals
temporarily living with friends or relatives because they cannot
afford to live on their own. Investing in affordable housing
and homeless services, including supportive housing, is key to
addressing homelessness and ensuring that everyone in the State
has an affordable place to live.
Accordingly, the purpose of this Act is to:
(1) Establish the homeless services special fund;
(2) Allow counties to apply for matching funds from the homeless services special
fund and the affordable homeownership revolving fund for housing projects that are
subject to a perpetual affordability requirement;
(3) Increase the conveyance tax rates for certain properties;
(4) Establish conveyance tax rates for multifamily residential properties;
(5) Exempt from conveyance taxes the conveyances of real property to:
(A) Organizations with certain affordability
requirements;
(B) Certain nonprofit organizations; and
(C) An owner -occupant or renter -occupant of the
property; and
(6) Allocate collected conveyance taxes to the affordable homeownership
revolving fund, homeless services special fund, and dwelling unit revolving fund and
amend allocations to the land conservation fund and rental housing revolving fund.
SECTION 2. Chapter 346, Hawaii Revised Statutes, is
amended by adding a new section to part XVII to be appropriately
designated and to read as follows:
"§346- Homeless services special fund. (a) There is
established within the state treasury a homeless services
special fund, to be administered and managed by the department
and into which shall be deposited:
Ll) Ten per cent of the conveyance tax collected and allocated to the homeless
services fund pursuant to section 247-7;
Appropriations made by the legislature; an
(D Interest earned upon any moneys in the fund.
(b) Moneys from any other private or public source may be
deposited in or credited to the fund; provided that an
mandates, regulations, or conditions on these funds do not
conflict with the use of the fund under this section. Moneys
received as a deposit or private contribution shall be
deposited, used, and accounted for in accordance with the
conditions established by the aQencv or person making the
contribution.
(c) Moneys in the homeless services special fund shall be
used by the department for homeless services and supportive
housing, including homeless facilities proarams for the homeless
authorized by the department.
(d) The department shall submit a report to the
legislature providing an accounting of the fund no later than
twenty days prior to the convening of each regular session. The
report shall include, at minimum:
W A detailed account of all funds received; an
Q All moneys expended from the homeless services special fund."
SECTION 3. Section 201H-206, Hawaii Revised Statutes, is
amended to read as follows:
"[-1]§201H-206[+] Affordable homeownership revolving
fund. (a) There is established an affordable homeownership
revolving fund to be administered by the corporation for the
purpose of providing, in whole or in part, loans to nonprofit
community development financial institutions and nonprofit
housing development organizations for the development of
affordable homeownership housing projects.
(b) Loans shall be awarded in the following descending
order of priority:
(1) Projects or units in projects that are funded by programs of the United States
Department of Housing and Urban Development, United States Department of
Agriculture Rural Development, and United States Department of the Treasury
Community Development Financial Institutions Fund, wherein:
(A) At least fifty per cent of the available units
are reserved for persons and families having
incomes at or below eighty per cent of the median
family income and of which at least five per cent
of the available units are for persons and
families having incomes at or below fifty per
cent of the median family income; and
(B) The remaining units are reserved for persons and
families having incomes at or below one hundred
twenty per cent of the median family income; and
(2) Mixed -income affordable for -sale housing projects or units in a mixed -income
affordable for -sale housing project wherein all of the available units are reserved for
persons and families having incomes at or below one hundred per cent of the median
family income.
(c) Moneys in the fund shall be used to provide loans for
the development, pre -development, construction, acquisition,
preservation, and substantial rehabilitation of affordable for -
sale housing units. Uses of moneys in the fund may include but
are not limited to planning, design, and land acquisition,
including the costs of options, agreements of sale, and down
payments; equity financing as matching funds for nonprofit
community development financial institutions; or other housing
development services or activities as provided in rules adopted
by the corporation pursuant to chapter 91. The rules may
provide that money from the fund shall be leveraged with other
financial resources to the extent possible.
(d) The fund may include [sams]:
4vate];
Sums appropriated by the legislature[, pr
Private contributions[, preeeeds];
Proceeds from repayment of loans[, interest,];
C4) Interests and other returns[3];
Conveyance taxes collected under chapter 247 and allocated to the affordable
homeownership revolving fund pursuant to section 247-7; and [moneys]
(6) Moneys from other sources.
(e) An amount from the fund, to be set by the corporation
and authorized by the legislature, may be used for
administrative expenses incurred by the corporation in
administering the fund; provided that moneys in the fund shall
not be used to finance day-to-day administrative expenses of the
projects allotted moneys from the fund.
(f) The corporation may provide loans under this section
as provided in rules adopted by the corporation pursuant to
chapter 91.
(g) The corporation may contract with nonprofit community
development financial institutions to fund loans under this
section. The corporation may contract for the service and
custody of its loans.
(h) The corporation may establish, revise, charge, and
collect a reasonable service fee, as necessary, in connection
with its loans, services, and approvals under this part. The
fees shall be deposited into the affordable homeownership
revolving fund.
(i) Counties may apply for matching funds from the fund;
provided that prior to applying for any matching funds, the
counties shall have an approved comprehensive affordable housing
plan that:
Identifies available lands for affordable housing-,
Identifies infrastructure needs and availability; an
Requires housing projects developed using moneys from the fund to be subject
to an affordability clause that keeps the property affordable in perpetuity, also known
as a "deed -restricted property";
provided further that costs for the development of or an update
to an existing county comprehensive affordable housing plan may,
upon application, be paid out of these funds.
[4--i+] ( j ) The corporation shall submit a report to the
legislature no later than twenty days prior to the convening of
each regular session describing the projects funded using moneys
from the affordable homeownership revolving fund."
SECTION 4. Section 247-2, Hawaii Revised Statutes, is
amended to read as follows:
"§247-2 Basis and rate of tax. The tax imposed by section
247-1 shall be based on the actual and full consideration
(whether cash or otherwise, including any promise, act,
forbearance, property interest, value, gain, advantage, benefit,
or profit), paid or to be paid for all transfers or conveyance
of realty or any interest therein, that shall include any liens
or encumbrances thereon at the time of sale, lease, sublease,
assignment, transfer, or conveyance, and shall be at the
following rates:
(1) Except as provided in paragraph (2+.] paragraphs (2) and (3)
(A) [Ten eents per $IGG fei=] For properties with a
value of less than $600,000[-,]: 10 cents per
$100;
(B) [Twenty e nts per- $190 fer-] For properties with a
value of at least $600,000, but less than
$1,000,000[-•]: 20 cents per $100;
(C) [Thirty eents per $100 fer] For properties with a
value of at least $1,000,000, but less than
$2,000,000[�/]: 30 cents per $100;
(D) [F-Ifty cents per $100 fer] For properties with a
value of at least $2,000,000, but less than
$4,000,000[�f]: 50 cents per $100;
(E) [Seventy eents per $100 fe-r] For properties with
a value of at least $4,000,000, but less than
$6,000,000[�f]: 70 cents per $100;
(F) [Ninety eents per $100 f-ei=] For properties with a
value of at least $6,000,000, but less than
$10,000,000[; an ]: $1.10 per $100;
(G) [One dell per $1011 fer] For properties with a
value of at least $10,000,000 [er giceaterp aRel],
but less than $14,000,000: $1.40 per $100;
(H) For properties with a value of at least
$14,000,000, but less than $18,000,000: $2.00
per $100;
(I) For properties with a value of at least
$18,000,000, but less than $22,000,000: $3.00
per $100;
(J) For properties with a value of at least
$22,000,000, but less than $26,000,000: $4.00
per $100; and
(K) For properties with a value of $26,000,000 or
greater: $6.00 per $100;
(2) For the sale of a multifamily residential proRgEtyL.
(A) For properties with a value of less than
$600,000: 10 cents per $100;
(B) For properties with a value of at least $600,000,
but less than $1,000,000: 20 cents per $100;
(C) For properties with a value of at least
$1,000,000, but less than $2,000,000: 30 cents
per $100;
(D) For properties with a value of at least
$2,000,000, but less than $4,000,000: 50 cents
per $100;
(E) For properties with a value of at least
$4,000,000, but less than $6,000,000: 70 cents
per $100;
(F) For properties with a value of at least
$6,000,000, but less than $10,000,000: 90 cents
per $100;
(G) For properties with a value of at least
$10,000,000, but less than $20,000,000: $1 per
$100;
(H) For properties with a value of at least
$20,000,000, but less than $50,000,000: $1.25
per $100;
(I) For properties with a value of at least
$50,000,000, but less than $100,000,000: $1.50
per $100; and
(J) For properties with a value of $100,000,000 or
greater: $2.00 per $100; and
[{2}] Ll) For the sale of a condominium or single family residence for which the
purchaser is ineligible for a county homeowner's exemption on property tax:
(A) [Fifteen eents per $190 fee] For properties with
a value of less than $600,000[*]: 15 cents per
?inn.
(B) [Twenty five eents per $100 fee] For properties
with a value of at least $600,000, but less than
$1,000,000[y]: 25 cents per $100;
(C) [Ferty eents per $190 fm] For properties with a
value of at least $1,000,000, but less than
$2,000,000[y]: 40 cents per $100;
(D) [Sixty eents per $199 fee] For properties with a
value of at least $2,000,000, but less than
$4,000,000[y]: $1.00'per $100;
Q [Eighty-five cents per $100 feel For properties
with a value of at least $4,000,000, but less
than $6,000,000[;]: $1.50 per $100;
i W. —VZM�212 -- EWMATAIR
New] For properties with a value of at least
$6,000,000, but less than $10,000,000[-t-
and]: $2.00 per $100;
(G) [9ne dell- ar and twenty five eents
too] For properties with a value of at
(H)
least $10,000,000 [eE gr-eate�], but less
$14,000,000: $3.00 per $100;
For properties with a value of at least
than
$14,000,000, but less
than
$18,000,000:
$4.00
(I)
per $100;
For properties with a
value
of at least
$18,000,000, but less
than
$22,000,000:
$5.00
(J)
per $100;
For properties with a
value
of at least
$22,000,000, but less
than
$26,000,000:
$6.00
(K)
per $100; and
For properties with a
value
of $26,000,000
or
greater: $7.00 per $100,
of [sue] the actual and full consideration; provided that in
the case of a lease or sublease, this chapter shall apply only
to a lease or sublease whose full unexpired term is for a period
of five years or more[, and in these eases, ineluding (wheEe
apprepriate) these eases where -fie] ; provided further that if
a lease has been extended or amended, the tax in this chapter
shall be based on the cash value of the lease rentals discounted
to present day value and capitalized at the rate of six per
cent, plus the actual and full consideration paid or to be paid
for any and all improvements, if any, that shall include on -site
as well as off -site improvements, applicable to the leased
premises; and provided further that the tax imposed for each
transaction shall be not less than $1.
For purposes of this section, "multifamily residential
ropertv" means a structure that is located within the state
urban land use district and divided into five or more dwellin
units."
SECTION S. Section 247-3, Hawaii Revised Statutes, is
amended to read as follows:
"§247-3 Exemptions. The tax imposed by section 247-1
shall not apply to:
(1) Any document or instrument that is executed prior to January 1, 1967;
(2) Any document or instrument that is given to secure a debt or obligation;
(3) Any document or instrument that only confirms or corrects a deed, lease,
sublease, assignment, transfer, or conveyance previously recorded or filed-,
(4) Any document or instrument between husband and wife, reciprocal
beneficiaries, or parent and child, in which only a nominal consideration is paid;
(5) Any document or instrument in which there is a consideration of $ 100 or less
paid or to be paid;
(6) Any document or instrument conveying real property that is executed pursuant
to an agreement of sale, and where applicable, any assignment of the agreement of
sale, or assignments thereof; provided that the taxes under this chapter have been fully
paid upon the agreement of sale, and where applicable, upon such assignment or
assignments of agreements of sale;
(7) Any deed, lease, sublease, assignment of lease, agreement of sale, assignment
of agreement of sale, instrument or writing in which the United States or any agency
or instrumentality thereof or the State or any agency, instrumentality, or governmental
or political subdivision thereof are the only parties thereto;
(8) Any document or instrument executed pursuant to a tax sale conducted by the
United States or any agency or instrumentality thereof or the State or any agency,
instrumentality, or goverm-nental or political subdivision thereof for delinquent taxes
or assessments;
(9) Any document or instrument conveying real property to the United States or
any agency or instrumentality th6reof or the State or any agency, instrumentality, or
governmental or political subdivision thereof pursuant to the threat of the exercise or
the exercise of the power of eminent domain;
(10) Any document or instrument that solely conveys or grants an easement or
easements;
(11) Any document or instrument whereby owners partition their property, whether
by mutual agreement or judicial action; provided that the value of each owner's
interest in the property after partition is equal in value to that owner's interest before
partition;
(12) Any document or instrument between marital partners or reciprocal
beneficiaries who are parties to a divorce action or termination of reciprocal
beneficiary relationship that is executed pursuant to an order of the court in the
divorce action or termination of reciprocal beneficiary relationship;
(13) Any document or instrument conveying real property from a testamentary
trust to a beneficiary under the trust;
(14) Any document or instrument conveying real property from a grantor to the
grantor's revocable living trust, or from a grantor's revocable living trust to the grantor
as beneficiary of the trust;
(15) Any document or instrument conveying real property, or any interest therein,
from an entity that is a party to a merger or consolidation under chapter 414, 414D,
415A, 421) 42105 425, 425E, or 428 to the surviving or new entity;
(16) .Any document or instrument conveying real property, or any interest therein,
from a dissolving limited partnership to its corporate general partner that owns,
directly or indirectly, at least a ninety per cent interest in the partnership, determined
by applying section 318 (with respect to constructive ownership of stock) of the
federal Internal Revenue Code of 1986, as amended, to the constructive ownership of
interests in the partnership; [aftd]
[1](17)[4]Any document or instrument that conforms to the transfer on death deed as
authorized under chapter 527[-.]i
18 Any document or instrument conveying real property to an organization that:
(A) Has a minimum of thirty years remaining of a
price -restricted affordability period; or
(B) Places a deed restriction on the property to
maintain permanent affordability.
For purposes of this -paragraph:
"Permanent affordability" means a requirement that a residential real property
remain affordable to households with incomes at or below one hundred twentyper
cent of the area median income as determined by the United States Department of
Housing and Urban Development for the life of the property.
"Price -restricted affordabilitv -oeriod" means the period for which a
residential real property is restricted to renter households with incomes at or below
one hundred twenty per cent of the area median income as determined by the United
States Department of Housing and Urban Development applicable to the location of
the real property for the applicable federal fiscal year;
t19 Any document or instrument conveying real property to a nonprofit
organization that:
(A) Is exempt from federal income tax by the Internal
Revenue Services; and
(B) Will hold the property in an undeveloped state
and for conservation purposes in perpetuity
throuah a deed restriction on the property; and
aQ Any document or instrument conveying real properly to an individual who is
an owner -occupant or renter -occupant of the property; -provided the individual does
not have a direct or indirect ownership interest in any other real property, including
through ownership interest in a trust, t)artnershiD. comoration. limited liability
company, or other entity."
SECTION 6. Section 247-7, Hawaii Revised Statutes, is
amended to read as follows:
"§247-7 Disposition of taxes. All taxes collected under
this chapter shall be paid into the state treasury to the credit
of the general fund of the State, to be used and expended for
the purposes for which the general fund was created and exists
by law; provided that of the taxes collected each fiscal year:
(1) [�] Liglij per cent [of $5,100,000, whiehever- is less,] shall be paid into the
land conservation fund established pursuant to section 173A-5; [affd]
(2) [Fifty per- eent of $3 8,000,000, whiehever is less,] Thidy-eight per cent shall
be paid into the rental housing revolving fund established by section 201H-202[-.];
M Eight per cent shall be paid into the affordable homeownership revolving
established pursuant to section 201H-206,
(4) Eight per cent shall be paid into the homeless services special fund established
pursuant to section 346- , and
(5) Eight per cent shall be paid into the dwelling unit revolving fund established
pursuant to section 201H-1 91 for the purposes of funding infrastructure programs in
transit -oriented development areas."
SECTION 7. Statutory material to be repealed is bracketed
and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 3000.
Report Title:
DHS; Affordable Housing;
Homeless Services Fund;
Land Conservation Fund;
Unit Revolving Fund
Conveyance Tax; Rates;
Affordable Homeownership
Rental Housing Revolving
Exemption;
Revolving Fund;
Fund; Dwelling
Description:
Establishes the Homeless Services Special Fund. Allows counties
to apply for matching funds from the Affordable Homeownership
Revolving Fund for certain housing projects. Increases the
conveyance tax rates for certain properties. Establishes
conveyance tax rates for multifamily residential
properties. Establishes new exemptions to the conveyance
tax. Allocates collected conveyance taxes to the Affordable
Homeownership Revolving Fund, Homeless Services Fund and, and
Dwelling Unit Revolving Fund. Amends allocations to the Land
Conservation Fund and Rental Housing Revolving Fund. Effective
7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
■
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF RAWAII:
SECTION 1. Section 201H-31, Hawaii Revised Statutes, is
2 amended to read as follows:
3 " [+1 §201H-31 [4-] Criteria. (a) In administering this
4 chapter and other laws of the State applicable to the supplying
5 of housing or the assistance in obtaining housing, the
6 corporation shall give preference to those applicants most in
7 need of assistance in obtaining housing, in light of the amount
8 of moneys available for the various programs. In doing so, the
9 corporation shall take into consideration the applicant's
10 household income and number of dependents; the age of the
11 applicant; the physical disabilities of the applicant or those
12 living with the applicant; whether or not the present housing of
13 the applicant is below standard; whether or not the applicant's
14 need for housing has arisen by reason of displacement of the
1.5 applicant by governmental actions, the proximity between the
16 housing location and the applicant's place of employment;
17 whether the applicant is a state or county employee; whether the
1
Page 2
I WO -A
1, �plicant is a returning resident that left the State to attend
2
a university, college, or trade school and has graduated within
3
thepasttwo
years; and other factors as it may deem pertinent.
4
The corporation may allow households with incomes up to twenty
5
per cent
greater than the income on which the maximum sales
6
price was
based to be qualified to purchase a unit.
7
(b)
For any project developed or administered by the
8
corporation under this chapter, the corporation shall, when
9
feasible,
set aside as a matter of preference no fewer
10
than
per cent of the available units for state or county
11
employees.
12
(c)
The corporation shall:
13
(1)
Determine the order of preferences as outlined in this
14
section and rank all applicants —accordingly;
is
(2)
Select applicants based on application date within the
16
pool of similarly ranked applicants; and
17
(3)
Validate the preference status of an applicant before
IS
occupancy of an affordable unit.-*
19
(d)
The corporation may establish additional eligibility
20 criteria in administrative rules adopted pursuant to
21 chapter 91.11
2
Page 3
I SECTION 2. Statutory material to be repealed is bracketed
2 and stricken. New statutory material is underscored.
3 SECTION 3. This Act shall take effect upon its approval.
4
INTRODUCED BY:
Report Title:
HHFDC; Housing Development Programs; Criteria; Preferences;
Ranking; Housing Location Proximity; State and County Employees;
Returning Resident Graduates; Reserved Units; Rules
Description:
Requires the Hawaii Housing Finance and Development Corporation
(HHFDC) to consider as a preference under chapter 201H, HRS, the
proximity between the housing location and the applicant's place
of employment; whether the applicant is a state or county
employee; and whether the applicant is a returning resident that
left the State to attend a university, college, or trade school
and has graduated within the past two years. Requires, for any
project developed or administered by the HHFDC under chapter
201, HRS, the HHFDC to set aside as a matter of preference an
undetermined per cent of available units for state or county
employees, when feasible. Requires HHFDC to determine the order
of preferences and rank applicants accordingly, select
applicants based on application date within the pool of
similarly ranked applicants, and validate the preference status
of applicants before occupancy of a unit. Authorizes HHFDC to
adopt rules to establish additional eligibility criteria.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.