HomeMy WebLinkAboutRES 693 Draft 02 2022-2024COUNTY OF HAWAII STATE OF HAWAIII
RESOLUTION NO. 693 24
(DRAFT 2)
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 Environment (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 Hawai`i 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 Hawai`i State Association of Counties.
Dated at Kona , Hawai`i, this 20th day of _ November , 20 24 .
INTRODUCED BY:
C fa.'N CIL MEMBE , COUNTY OF HAWAI`I
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX
Hilo, Hawai`i EVANS X
GALIMBA X
I hereby certify that the foregoing RESOLUTION was by INABA X
the vote indicated to the right hereof adopted by the COUNCIL of the KAGIWADA X
County of Hawaii on November 20, 2024
KANEALI`I-KLEINFELDER X
KIERKIEWICZ X
ATTEST: KIMBALL X
LEE LOY
VILLEGAS X
. 7 0 1 0
C:' L~~� �R`�/✓ Reference: C-1128.2/GOEAC-169
TY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 693 24
(DRAFT 2)
2
10461 mollommA
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 1 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)
[Ps] 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:
to "(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
IS 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
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 shortag-e 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
. fir/ . 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
8 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
If 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 program."
20 SECTION 3. Section 88-98, Hawaii Revised Statutes, is
21 amended as follows:
Page 5
B. NO.
1 "§88-98 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
18 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
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:
is
(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 compensation 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
115 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 multi -plied 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
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.
15 (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
=-f
-B. NO.
chapter providing for benefits arising out of the disability or
2 death of a member. A retirant who returns to service and dies
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
during the period of reemployment shall be considered to have
retired again effective as of the first day of the month
following the month in which the death occurs, except for death
during the month of December when the effective date of
retirement may be the last day of the month.
(f) There is a deferred retirement option ,program for
police officers. A -police officer who has reached the service
requirements for normal retirement is eligible to enter the
deferred retirementoptionprogram. Once enrolled in the
deferred retirement option program, the enrollee's service and
benefit levels are locked as of the effective date of
enrollment. Pension payments for deferred retirement option
program enrollees will be deposited to a deferred retirement
option program account each month with investment earnings or
losses at a rate equal to the pension Alan's actual investment
return, net of investment expenses, and will be paid upon
termination from the program in accordance with rules adopted by
the board. Police officers enrolled in the deferred retirement
option program must enroll within twelve months of eligibility
for normal retirement. Enrollees may participate for a maximum
Page 10
.B. NO.
I of one hundred twenty months as lon as their tenure does not
2 exceed thirty-five total years. Enrollment in the deferred
3 retirement option program will cease if an enrollee is unable to
4 continue as an active police officer for longer than twenty
5 working days excluding vacation days. Deferred retirement option
6 Program enrollees donotpay 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 prcc ram. 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 retirement option 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 eliqible for deferred compensation.
20 [+-f+)(g) The board shall adopt any rules as may be required
21 to administer this section."
Page I I
B. NON
I SECTION 4. Statutory
material
to be deleted is bracketed
2 and in strikethrough. 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:
1ST DRAFT DATE:
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
16 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 [Statewide (a) Sales of 91gaEetteB, tebaeee pEedk*ets,
52 and eleetrren4:e smelelRq eleviees are a state-wide eneer-n. it A:s
53 J-1it—e-at ef the legislatur-e te rmegialate the sale ef
64 eigaEettes, tebaeee pfeduets, and eleetrenie sfaelein deviees J:R
55 a enifei-m and eiee4:t*5*'wfe Faannef.
56 (b) All leeal efeiinaftees ar r-equiatiefis that regulate
57 tlFte sale ef ej:gaLaettes, tebaeee preeltiets, an4 eleetfen4:e sffte�e6ng
58 elev;_�ees are preempted, aftd existiftq leeal !&we and eegulatlens
59 eenf:14:etlag with tM!s ehapter- are null and veld-.
60 (e) Nething in this ehapter- shall be eeftst�-ued te
61 lAmIt a eeunty' a aiatlier-Ity tiftele* seet -4ei-q- -:428J - 19.
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:
1 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:
1
Page 2 B . NO.
1 115342D- 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
5 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; and
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
a
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
eB e NO e
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO CESSPOOLS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
I 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 NO.
1 (1) Accelerating the dates for required upgrades,
2 conversions, or connections of:
(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:
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 cess-000ls 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
uDarade,
convert, or
connect
the
cess-000l. For
Page 4
I 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 vears at a time from the requirements of subsections (a) and (b)
10 based on demonstration of financial inability to Dav for or
11 finance a cesspool upgrade, 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. Notwithstandina anv law
18
to
the
contrary, no
seizure of real property shall be authorized
19
for
anv
violation of
this section.
20 (f) As used in this section, "cesspool" has the same
21 meaning as in section 342D-72."
Page 5 NO.
I SECTION 3. Section 342D-72, Hawaii Revised Statutes, is
2 amended by amending subsection (a) to read as follows:
3 "(a) [BefeL=e] 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 "§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
taxpayer'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
vear. The exoenses upon
8 which
the tax
credit is computed
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 eaual
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 aualified cesspool. The
21 cesspool upgrade, conversion, or connection income tax credit
1 shall be available onlv for the taxable vear 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
vear 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
16
17
18
19
20
21
taxable vear; and
(3) Certify to each taxpayer the amount of credit the
taxpayer may claim; provided that if, in any year, the
annual amount of certified credits reaches
in the aQQreQate, the department of health
shall immediately discontinue certifvinq credits and
notify the department of taxation.
Am
I The director
of health
may
adopt rules under chapter
91 as
2 necessary to
implement
the
certification requirements
under this
3 section.
4 (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
9 the tax credit made under this section; and
10 (3) May adopt rules under chapter 91 necessary to
11 effectuate the purposes of this section.
12 (a) If the tax credit under this section exceeds the
13 tax-oaver'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 year 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:
g�
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
5 according 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 dwelling.
19 "Sewerage system" has the same meaning as in
20 section 342D-1.
21 "Wastewater" has the same meaning as in section 342D-1."
Page 11
1 SECTION 7. Section 23-92, Hawaii Revised Statutes, is
2 amended by amending subsection (c) to read as follows:
3 "(c) This section shall apply to the following:
4 (1) Sections 235-12.5 and 241-4.6--Credit for renewable
5 energy technology system installed and placed in
6 service in the State. For the purpose of section 23-
7 91(b)(5), this credit shall be deemed to have been
8 enacted for an economic benefit;
9 (2) Section 235-17--Credit for qualified production costs
10 incurred for a qualified motion picture, digital
11 media, or film production[—.]; and
12 (3) Section 235- --Credit for cesspool upgrade,
13 conversion, or connection."
14 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
NO.
(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;
Seetien 235 110.94 Gicedlmt- fer- er-Ejanieally f)i=eEidee-d
(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.
I
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
"(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
[4--3+
Seetlen 235-16.15 Grreellt feic eesspeel 'dPEJL=ade,
11
eeno�e;Esief�, eic eenneet-i-en;
12
4-4+]
(3) Section 235-19--Deduction for maintenance of an
13
exceptional tree;
14
[-(-S+]
(4) Section 235-55.91--Credit for the employment of a
15
vocational rehabilitation referral;
16
[+-6+]
(5) Section 235-110.2--Credit for in -kind services
17
contribution for public school repair and maintenance;
18
and
19
(6) Sections 235-110.8 and 241-4.7--Credit for
20
ownership of a qualified low-income housing building."
21
PART V
Q.�
I 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
INTRODUCED BY:
THE SENATE
THIRTY-THIRD LEGISLATURE, 2025 S.B. NO.
STATE OF HAWAII
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 finds the need to extend the
2 county surcharge on state general excise taxes, which was
3 enacted by Act 247, Session Laws of Hawaii 2005.
4 SECTION 2. Section 46-16.8, Hawaii Revised Statutes, is
5 amended as follows:
6 1. By amending subsections (b) and (c) to read:
7 "(b) Each county that has established a surcharge on state
8 tax before July 1, 2015, under authority of subsection (a) may
9 extend the surcharge until December. 31, [2930,] 2045, at the
10 same rates. A county electing to extend this surcharge shall do
11 so by ordinance; provided that:
12 (1) No ordinance shall be adopted until the county has
13 conducted a public hearing on the proposed ordinance;
14 and
15 (2) The ordinance shall be adopted before January 1,
16 [2018.1 2028.
2025-0095 SB SMA.docx
I
2
3
4
5
6
7
8
9
10
11
IN
13
14
15
16
17
18
19
20
21
Paget S.B. NO.
A county electing to exercise the authority granted under
this subsection shall notify the director of taxation within ten
days after the county has adopted an ordinance extending the
surcharge on state tax. The director of taxation shall levy,
assess, collect, and otherwise administer the extended surcharge
on state tax.
(c) Each county that has not established a surcharge
pursuant to subsection (a) on state tax before July 1, 2015, may
establish the surcharge at the rates enumerated in sections 237-
8.6 and 238-2.6. A county electing to establish this surcharge
shall do so by ordinance; provided that:
(1) No ordinance shall be adopted until the county has
conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted before December 31,
2023; and
(3) No county surcharge on state tax that may be
authorized under this subsection shall be levied
before January 1, 2019, or after December 31, [293G.]
2045.
A county electing to exercise the authority granted under
this subsection shall notify the director of taxation within ten
2025-0095 SB SMA.docx
1
2
3
4
5
6
7
8
9
10
14
12
13
14
15
16
17
18
19
20
Page 3 S.B. NO.
days after the county has adopted a surcharge on state tax
ordinance. Beginning on January 1, 2019, January 1, 2020,
January 1, 2024, or January 1, 2025, as applicable pursuant to
sections 237-8.6 and 238-2.6, the director of taxation shall
levy, assess, collect, and otherwise administer the county
surcharge on state tax."
2. By amending subsection (g) to read:
'I(g) Each county having a population equal to or less than
five hundred thousand that adopts a county surcharge on state
tax ordinance pursuant to this section shall use the surcharges
received from the State for:
(1) Operating or capital costs of public transportation
within each county for public transportation systems,
including:
(A) Public roadways or highways;
(B) Public buses;
(C) Trains;
(D) Ferries;
(E) Pedestrian paths or sidewalks; or
(F) Bicycle paths;
2025-0095 SB SMA.docx
3
Page 4
1 (2) Expenses in complying with the Americans with
2 Disabilities Act of 1990 with respect to paragraph
3 (1); and
4 (3) Housing infrastructure costs; provided that a county
5 that uses surcharge revenues for housing
6 infrastructure shall not pass on those housing
7 infrastructure costs to the developer of a housing
8 project[; previded fidrther that this paragraph shall
9 apply enly if a eeidnt-y affiended its surehafge erdinanee
10 pursuant te subseetien (6) er adepts a eeunt-y
11 sidreharge en state t aim erdinanee after Deeefftber- 31,
12 2022;
13 previded that eaeh eeiinty having a pepulatien equal te er less
14 than five hundred theiisan6 that a4epts a eeunty sidreharge en
15 ,
16 2022, shall use t1he sureharge revenmees Eeeeived frefft the State
17 enly fer the purpeses deseribeei in paragraph (3) fer eeunt-yx-
18 apprepriateel heusing inf rastruets:r=El
19 SECTION 3. Section 237-8.6, Hawaii Revised Statutes, is
20 amended by amending subsection (b) to read as follows:
2025-0095 SB SMA.docx 4
Page 5 S.B. ICJ.
I
"(b)
Each county
surcharge on state tax that may be
2
adopted,
extended, or
amended pursuant to section 46-16.8 shall
3
be levied
beginning in
a taxable year after the adoption of the
4
relevant
county ordinance;
provided that no surcharge on state
5
tax may be
levied:
6
(1)
Before:
7
(A) January
1, 2007, if the county surcharge on state
8
tax was
established by an ordinance adopted
9
before
December 31, 2005;
10
(B) January
1, 2019, if the county surcharge on state
11 tax was established by the adoption of an
12 ordinance after June 30, 2015, but before June
13
30, 2018;
14
(C) January 1,
2020,
if
the county surcharge on state
15
tax was established
by the adoption of an
16
ordinance
on or
after June 30, 2018, but before
17
March 31,
2019;
18
(D) January 1,
2024,
if
the county surcharge on state
19
tax was established
by the adoption of an
20
ordinance
on or
after March 31, 2019, but before
21,
August 1,
2023;
or
2025-0095 YY SB SMA.docx
Page 6 S.B. NCB.
I (E) January 1, 2025, if the county surcharge on state
2 tax was established by the adoption of an
3 ordinance on or after August 1, 2023, but before
4 December 31, 2023; and
5 (2) After December 31, [2039.] 2045."
6 SECTION 4. Act 247, Session Laws of Hawaii 2005, as
7 amended by Act 240, Session Laws of Hawaii 2015, as amended by
8 Act 1, Special Session Laws of 2017, is amended by amending
9 section 9 to read as follows:
10 "SECTION 9. This Act shall take effect upon its approval;
14 provided that:
12
13
14
15
16
17
18
19
20
(1) If none of the counties of the State adopt an
ordinance to levy a county surcharge on state tax by
December 31, 2005, this Act shall be repealed and
section 437D-8.4, Hawaii Revised Statutes, shall be
reenacted in the form in which it read on the day
prior to the effective date of this Act;
(2) If any county does not adopt an ordinance to levy a
county surcharge on state tax by December 31, 2005, it
shall be prohibited from adopting such an ordinance
6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Page 7 S.B. NO.
pursuant to this Act, unless otherwise authorized by
the legislature through a separate legislative act;
(3) If an ordinance to levy a county surcharge on state
tax is adopted by December 31, 2005:
(A) The ordinance shall be repealed on December 31,
2022; provided that the repeal of the ordinance
shall not affect the validity or effect of an
ordinance to extend a surcharge on state tax
adopted pursuant to an act of the legislature;
and
(B) This Act shall be repealed on December 31,
[2030;] 2045; and section 437D-8.4, Hawaii
Revised Statutes, shall be reenacted in the form
in which it read on the day prior to the
effective date of this Act; provided that the
amendments made to section 437D-8.4, Hawaii
Revised Statutes by Act 226, Session Laws of
Hawaii 2008, as amended by Act 11, Session Laws
of Hawaii 2009, and Act 110, Session Laws of
Hawaii 2014, shall not be repealed."
2025-0095 SB SMA.docx
M
Page 8
I SECTION 5. Statutory material to be repealed is bracketed
2 and stricken. New statutory material. is underscored.
3 SECTION 6. This Act shall take effect upon its approval.
4
INTRODUCED BY:
2025-0095 SB SMA.docx a
S.B. NO.
2025-0095 SB SMA.docx
Report Title:
County Surcharge on State Tax; General Excise Tax Law; Extension
Description:
Authorizes each county that has established a surcharge on state
tax before 7/1/2015 to extend the surcharge until 12/31/2045, at
the same rates, if the county does so before l/l/2028; Provides
that no county surcharge on state tax authorized for a county
that has not established a surcharge on state tax before
7/1/2015, shall be levied before 1/l/2019, or after 12/31/204S;
and Repeals certain conditions on the use of surcharges received
from the State for counties having a population equal to or less
than S00,000 that adopt a county surcharge on state tax.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent
2025-0095 SB SMA.docx
A BILL FOR AN ACT
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:
LI) 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; and
Interest earned Won 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 any
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 agency 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 programs 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; and
(2) All moneys Mended from the homeless services special fund."
SECTION 3. Section 201H-206, Hawaii Revised Statutes, is
amended to read as follows:
"[-11§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 [ suffts ] :
Sums appropriated by the legislature[, private];
Private contributions[, proceeds];
Proceeds from repayment of loans[, interest,];
f4) Interests and other returns[;];
f 5) Conveyance taxes collected under chapter 247 and allocated to the affordable
homeownership revolving fund pursuant to section 247-7; and [meneys]
(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:
(1) Identifies available lands for affordable housing;
Q Identifies infrastructure needs and availability; and
fD Requires housing projects developed using moneys from the fund to be subject
to an affordability clause that keeps the property affordable in oemetuitv. also known
as a "deed -restricted property"
rovided 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.
[+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 ] paragraphs (2) and (3):
(A) [Ten eents per $190 fer] For properties with a
value of less than $600,000[;]: 10 cents per
$100;
(B) [Twenty eents per $109 fer] For properties with a
value of at least $600,000, but less than
$1,000,000[�f]: 20 cents per $100;
(C) [Thirty eents jeer- $100 fer] For properties with a
value of at least $1,000,000, but less than
$2,000,000[�r]: 30 cents per $100;
(D) [Fifty eents per $100 fer] For properties with a
value of at least $2,000,000, but less than
$4,000,000[�r]: 50 cents per $100;
(E) [Seventy eents per- $100 f ] For properties with
a value of at least $4,000,000, but less than
$6,000,000[�P]: 70 cents per $100;
(F) [Ninety cents per- $100 feic] For properties with a
value of at least $6,000,000, but less than
$10,000,000[; —aid] : $1.10 per $100;
(G) [fie elellar peic $100 fer] For properties with a
value of at least $10,000,000 [er greater-; and],
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 property:
(A)
For properties with a
value of less than
(B)
$600,000: 10 cents per $100;
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
(D)
per $100;
For properties with a
value of at least
$2,000,000, but less
than $4,000,000:
50 cents
(E)
per $100;
For properties with a
value of at least
$4,000,000, but less
than $6,000,000:
70 cents
(F)
per $100;
For properties with a
value of at least
$6,000,000, but less
than $10,000,000:
90 cents
(G)
per $100;
For properties with a
value of at least
$10,000,000, but less
than $20,000,000:
$1 per
(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
neater: $2.00 per $100; and
[(-2)] fD 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 $100 f For properties with
a value of less than $600,000[*]: 15 cents per
$100;
(B) [Twenty-five eents per $1 For properties
with a value of at least $600,000, but less than
$1,000,000[*]: 25 cents per $100;
(C) [Ferty eents per 5154—Ten] 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 JAW —few] 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 eents per 11 ] For properties
with a value of at least $4,000,000, but less
than $6,000,000[y]: $1.50 per $100;
(F) [Gne dellar and ten Ants per $100
few] For properties with a value of at least
$6,000,000, but less than $10,000,000[-
and]: $2.00 per $100;
(G) One dellar and twenty-five per $100
Teo] For properties with a value of at
(H)
least $10,000,000 [ems Ejreate-r--,], 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 [sueh] 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[, anel in these eases, inelueling (where
apprepriate) these eases where ]; 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
property" means a structure that is located within the state
urban land use district and divided into five or more dwellin
units. "
SECTION 5. 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 $1.00 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;
(S) 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 governmental 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 thereof or the State or any agency, instrumentality, or
governinental 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, 421C, 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; []
[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 affordability aeriod" means the period for which a
residential real property is restricted to renter households with incomes at or below
one hundred twepll 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;
L19 AM 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
through a deed restriction on the property; and
�LQJ Any document or instrument conveying real property to an individual who is
an owner -occupant or renter -occupant of the properly; provided the individual does
not have a direct or indirect ownership interest in any other real property, including
through ownership interest in a trust, DartnershiD, comoration. limited liabilitv
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) [Ten] Eight per cent [or- $5,100,000, whieheve f is less;] shall be paid into the
land conservation fund established pursuant to section 173A-5; [and]
(2) [Fifty per- eent or- $3 8,000,000, whiehever is 4es-5-,] Thilly-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 fund
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
ff) Eight per cent shall be paid into the dwelling unit revolving fund established
pursuant to section 20 1 H- 191 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; Conveyance Tax; Rates; Exemption;
Homeless Services Fund; Affordable Homeownership Revolving Fund;
Land Conservation Fund; Rental Housing Revolving Fund; Dwelling
Unit Revolving Fund
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.
R NO.
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 201H-31, Hawaii Revised Statutes, is
2 amended to read as follows:
3 11 [+1 §2 01 H-31 [4-1 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
15 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
1, applicant is a returning resident that left the State to attend
2 a university, college, or trade school and has graduated within
3 the
past two years;
and other factors as
it may deem
pertinent.
4 The
corporation may
allow households with
incomes up
to twenty
5 percent
greater than
the income on which the maximum sales
6 price was
based to be
qualified to purchase a unit.
7 (b)
For anyproject
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,
15
(2)
Select applicants
based on application date within the
16
pool of
similarly ranked applicants; and
17
Validate
the preference status of an applicant before
18
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
0
Page 3
.B. NO.
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:
3
S.B. NO.
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