HomeMy WebLinkAboutRES 664 Draft 01 2024-2026 J�ZY OF,,,,�
COUNTY OF HAWAI`I * 4 1_• STATE OF HAWAI`I
RESOLUTION NO. 664 26
A RESOLUTION APPROVING THE HAWAI`I COUNTY COUNCIL LEGISLATIVE
PROPOSALS AND PRIORITIES TO BE CONSIDERED FOR INCLUSION IN THE
2027 HAWAI`I STATE ASSOCIATION OF COUNTIES LEGISLATIVE PACKAGE.
WHEREAS, in October 2026,the Hawai`i State Association of Counties (hereinafter,
"HSAC")Executive Committee will evaluate legislative proposals and priorities from each
county for inclusion in the 2027 HSAC Legislative Package that will be presented to the Hawai`i
State Legislature when it convenes in January 2027; and
WHEREAS, each proposal and priority must be approved by an HSAC member county
prior to consideration by the HSAC Executive Committee; and
WHEREAS,timely action is necessary for Hawaii County Council to approve proposals
and priorities to be considered for the 2027 HSAC package; and
WHEREAS, legislative proposals submitted by Hawai`i County Council are listed below
and attached hereto as"Exhibit A"and incorporated herein by reference:
1. A draft bill to prohibit the capture and sale of aquatic life for commercial aquarium
purposes;
2. A draft bill to allow the counties to request a state land use boundary amendment
from the agricultural to rural districts for small, contiguous parcels;
3. A draft bill to require denitrification in individual wastewater systems under certain
conditions;
4. A draft bill to extend the county surcharge of the general excise tax until 2045; and
5. A draft bill to update eligibility criteria for housing assistance applicants and to
allocate a percentage of housing units to be used by State or County employees
under chapter 201H,Hawai`i Revised Statutes; and
WHEREAS, legislative priorities submitted by the Hawai`i County Council are listed
below:
1. Legislation related to herbicide usage on public property;
2. Legislation related to solar system installation on public property and renewable
energy generation;
3. Legislation related to the Commission on Water Resource Management,watershed
management,riparian areas, and flood control,particularly in areas of
intergovernmental authority;
4. Legislation related to mental and behavioral health resources;
5. Legislation related to economic development and diversification, and the
administration of the Department of Business,Economic Development and Tourism
and the Depaitinent of Commerce and Consumer Affairs;
6. Legislation related to wastewater infrastructure, cesspool conversion, and related
financing; and
7. Legislation related to Act 212, Session Laws of Hawai`i 2025, and the
implementation of safe routes to school programs; now,therefore,
•
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI'I that the
legislative proposals as presented in"Exhibit A" and the legislative priorities listed above are
hereby submitted to be considered for inclusion in the 2027 Hawai`i State Association of
Counties Legislative Package.
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to Tamara Paltin,President of the Hawai`i State Association of Counties; and Bernard
Carvalho,Jr., Secretary.
Dated at ,Hawai`i,this day of ,20
INTRODUCED BY:
HEATHER KIMBALL
Council Member
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii AYES NOES ABS EX
Hilo,Hawaii GALIMBA
HUSTACE
I hereby certify that the foregoing RESOLUTION was by INABA.
the vote indicated to the right hereof adopted by the COUNCIL of the KAGIWADA
County of Hawai`i on
KANEALI`I-KLEINFELDER
KIERKIEWICZ
ATTEST: KIMBALL
ONISHI
VILLEGAS
Reference: C-1048/GOEAC
COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 664 26
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EXHIBIT A
THE SENATE S. B . NO. 2535
THIRTY-THIRD LEGISLATURE, 2026 .
STATE OF HAWAII
JAN 2 3 2026
A BILL FOR AN ACT
RELATING TO COMMERCIAL AQUARIUM COLLECTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1 . The legislature finds that the capture and sale
2 of Hawaii's native reef wildlife for ornamental display and
3 commercial profit is unsustainable and contrary to Hawaiian
4 values, including malama aina, aloha aina, kuleana for the
5 surrounding environment, and pono fishing practices, such as
6 taking only what is needed for family or community subsistence.
7 The legislature further finds that the 1953 territorial
8 legislature, in enacting legislation to permit commercial
9 aquarium fish collection using fine-meshed nets, currently
10 codified in section 188-31, Hawaii Revised Statutes, ignored,
11 disregarded, and effectively nullified the many traditional uses
12 of Hawaiian reef fish by falsely stating that fish taken for
13 aquarium display have "little or no value as food fish, " and
14 that "the species of fish for aquarium purposes is not edible" .
15 The legislature recognizes that many species of fish
16 targeted by aquarium collection, including lauipala (yellow
17 tang) and kale (goldring surgeonfish) , have in fact been used
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/or
1 for subsistence and cultural purposes and have been critical to
2 maintaining healthy reef ecosystems to support these purposes
3 since time immemorial, up to and including the present day.
4 The legislature also finds that climate change and
5 associated ecological shifts require the State to keep as many
6 native fish on the reef as possible. Abundant populations of
7 herbivorous reef wildlife can bolster reef resiliency against
8 the effects of climate change by consuming algae that bloom and
9 can smother reefs following ocean heat waves or changes in ocean
10 acidity. Reefs provide vital ecosystem benefits, reducing the
11 impact of extreme weather events and high surf by moderating
12 onshore erosion, protecting human infrastructure, and mitigating
13 harm to flora and fauna. Moreover, on-reef tourism activities,
14 including snorkeling and diving, are a vital part of Hawaii' s
15 nature-based tourism economy, which is driven by healthy and
16 vibrant ecosystems.
17 The legislature notes that in 1988, the State prohibited
18 the taking of sand, dead coral or coral rubble, rocks, soil, and
19 other marine deposits. Extending these prohibitions to
20 encompass the commercial collection and sale of reef wildlife
21 for the aquarium pet trade is now necessary to protect and
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1 conserve Hawaii's invaluable natural resources for present and
2 future generations, including traditional Native Hawaiian
3 cultural practices that depend on them. The legislature further
4 notes that these obligations and protections are enshrined in
5 article XI, sections 1 and 9, and article XII, section 7 of the
6 Constitution of the State of Hawaii.
7 Accordingly, the purpose of this Act is to prohibit the
8 capture and sale of aquatic life for commercial aquarium
9 purposes, regardless of the method of collection.
10 SECTION 2. Chapter 188, Hawaii Revised Statutes, is
11 amended by adding a new section to be appropriately designated
12 and to read as follows:
13 "§188- Harvesting aquatic life for commercial aquarium
14 purposes; prohibition. (a) No person shall harvest aquatic
15 life from state marine waters for commercial aquarium purposes.
16 (b) Nothing in this section shall be construed to:
17 (1) Affect:
18 (A) Captive-breeding and aquaculture activities
19 pursuant to section 187A-3.5; or
20 (B) The issuance of special activity permits
21 authorizing the capture and take of aquatic life
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1 for scientific, educational, management, or
2 propagation purposes pursuant to section 187A-6;
3 or
4 (2) Prohibit the:
5 (A) Exercise of traditional and customary practices;
6 (B) Lawful taking of fish for consumption or bait; or
7 (C) Lawful management or taking of aquatic life from
8 fishponds.
9 (c) As used in this section:
10 "Commercial aquarium purpose" means the taking of marine
11 life for profit, gain, or as a means of livelihood for sale into
12 the aquarium trade to be held in a state of captivity as a pet
13 or for ornamental display. "
14 SECTION 3. Section 188-22. 9, Hawaii Revised Statutes, is
15 amended to read as follows:
16 " [+]§188-22. 9[}1 Ha'ena community-based subsistence
17 fishing area; restrictions; regulations. (a) There is
18 designated the Ha'ena community-based subsistence fishing area
19 on the northwestern coast of Kauai, which shall consist of all
20 state waters and submerged lands bounded by:
21 (1) The shoreline of the Ha'ena district;
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1 (2) A line that follows an imaginary extension of the
2 boundary between Hae'na state park and Na Pali state
3 park that extends seaward for one mile from the
4 shoreline;
5 (3) An irregular line one mile offshore that is parallel
6 to the contours of the shoreline; and
7 (4) A line that follows an imaginary extension of the
8 boundary between Hae'na and Wainiha, as specified in
9 the tax map of the county of Kauai, that extends
10 seaward for one mile from the shoreline.
11 (b) In addition to the provisions of this chapter, the
12 following uses or activities shall be regulated in the Haeena
13 community-based subsistence fishing area:
14 (1) Any activities with a commercial purpose, as defined
15 in section 187A-1;
16 (2) The issuance of any commercial marine license, as
17 defined in section 187A-1;
18 [ (3) The issuancc of any aquarium fish permits, pursuant to
19 section 188 31; ]
20 (4) Fishing with the use of gill nets;
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1 (5) Fishing with self-contained underwater breathing
2 apparatus and spears; and
3 (6) Any other use or activity that the department of land
4 and natural resources, in consultation with the
5 inhabitants of the ahupua'a of Ha'ena and other
6 interested parties, deems appropriate.
7 (c) The department of land and natural resources, as soon
8 as practical, shall consult with as broad a base as possible,
9 group of inhabitants of the ahupua'a of Ha'ena and other
10 interested parties to establish rules for the Ha'ena community-
11 based subsistence fishing area, to include but not be limited
12 to:
13 (1) A determination of fishing practices that are
14 customarily and traditionally exercised for purposes
15 of native Hawaiian subsistence, culture, and religion
16 in the fishing area;
17 (2) A management plan recognizing existing marine
18 activities permitted by the department of land and
19 natural resources and containing a description of
20 specific activities to be conducted in the fishing
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1 area, including evaluation and monitoring processes
2 and methods of funding and enforcement;
3 (3) Limits on the harvest of aquatic life, as those terms
4 are defined in section 187A-1, in the fishing area;
5 (4) The establishment of no harvesting zones within the
6 fishing area without depriving ahupua'a inhabitants of
7 access to traditional sources of subsistence; and
8 (5) A process for the expansion of the fishing area to
9 include other ahupua'a.
10 The department of land and natural resources shall adopt
11 rules pursuant to chapter 91 necessary for the purpose of this
12 section. "
13 SECTION 4 . Section 189-11, Hawaii Revised Statutes, is
14 amended to read as follows:
15 "§189-11 Receipts in duplicate. Every commercial marine
16 dealer shall issue receipts to the person from whom marine life
17 is obtained and shall provide the following information in the
18 receipt:
19 (1) The date of the issuance;
20 (2) The name of the person to whom the receipt is issued;
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1 (3) The following information with respect to each of the
2 varieties of marine life as the department shall
3 require including:
4 (A) The weight in pounds of each of the varieties
5 received;
6 (B) The numbers of marine life when they average a
7 pound or more; and
8 (C) The price per pound paid; and
9 [ (D) With rcgard to aquarium fish, rcgardlcss of
10 weight, thc numbcr and spccics of thc fishcs;
11 a 4]
12 (4) The signature of the dealer who issues the receipt.
13 Any dealer taking the dealer' s own marine life or handling any
14 marine life taken by commercial marine licensees working for or
15 with the dealer, shall make out the same receipt, giving market
16 price for the marine life as prevails on the date of receipt. A
17 duplicate copy of this receipt shall be kept on file at the
18 premise where the marine life was sold by the dealer issuing the
19 same for a period of twelve months from the date of issuance,
20 and the duplicate copy shall be available for inspection upon
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1 the demand of any conservation officer authorized to enforce the
2 laws of the State. "
3 SECTION 5. Section 188-31, Hawaii Revised Statutes, is
4 repealed.
5 ["S188-31 Permits to takc aquatic life- for aquarium
6 purposes. (a) Except as prohibitcd by law, thc dcpartmcnt,
7 upon receipt of a written application, may issue an aquarium
8 fish permit, not longer than one year in duration, to use finc
9 meshed traps, or finc meshed ncts other than throw nets, for the
10 taking of marine or freshwater nongamc fish and othcr aquatic
11 life for aquarium purposes.
12 (b) Exccpt as prohibitcd by law, the permits shall be
13 is„,ucd only to persons who can satisfy thc dcpartmcnt that thcy
14
15 life alive and in reasonable health.
16 (c) It shall be illegal to sell or offer for sale any fish
17 and other aquatic life to-ken un-der an aquarium fish permit
18 unless those fish and other aquatic life are sold alive for
19 aquarium purposes.
20 The dcpartmcnt may adopt rules pursuant to chapter 91 for
21 the purpose of this section.
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1 (d) For the purposes of this scction:
2 4)- "Aquarium purposes" means to hold salt watcr fish,
3 freshwater nongamc fish, or other aquatic life alivc
4 in a state of captivity as pets, for scientific study,
S or for public exhibition or display, or for sale for
6 these purpoocs; and
7 (2) "Aquarium fish permit" means a permit issued by the
8 board for thc use of fine mesh ncts and traps to take
9 oalt watcr fish, freshwater nongamc fish, or othcr
10 aquatic life for aquarium purpose. "]
11 SECTION 6. Section 188-31 .5, Hawaii Revised Statutes, is
12 repealed.
13 [" [S188-31.5] Aquarium fish for cxport; monthly count.
14 The dcpartmcnt of land and natural rcsourccs shall adopt rules
15 in accordance with chapter 91 to monitor the aquarium fish catch
16 report and fish dealer' s report for cxport of aquarium fish
17 taken from the waters of the Statc for aquarium purposes
18 pursuant to section 188 31. A- ten-t-hly ce -e-f—th
19 taken of each individual species of aquarium fish exported shall
20 be reported to thc board. "]
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1 SECTION 7. If any provision of this Act, or the
2 application thereof to any person or circumstance, is held
3 invalid, the invalidity does not affect other provisions or
4 applications of the Act that can be given effect without the
5 invalid provision or application, and to this end the provisions
6 of this Act are severable.
7 SECTION 8. This Act does not affect rights and duties that
8 matured, penalties that were incurred, and proceedings that were
9 begun before its effective date.
10 SECTION 9. Statutory material to be repealed is bracketed
11 and stricken. New statutory material is underscored.
12 SECTION 10. This Act shall take effect upon its approval.
13
INTRODUCED BY:
By Request
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Report Title:
Office of Hawaiian Affairs Package; DLNR; BLNR; Aquatic
Resources; Fishing Regulations; Commercial Aquarium Collection;
Sustainability; Prohibition
Description:
Prohibits the capture and sale of aquatic life for commercial
aquarium purposes, regardless of the method of collection.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
SB LRB 26-0278 .docx
IIIiIOI IMIII OIII ffl[i II III E IIIINI
HOUSE OF REPRESENTATIVES 2424
THIRTY-THIRD LEGISLATURE, 2026 H . B . N O . H.D. 2
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO LAND USE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1 . The legislature finds that small lot
2 subdivisions exist in agricultural districts within each county
3 that may be more appropriately placed within the rural district.
4 Many of these lots were created for speculative purposes before
5 the enactment of the state land use law in 1961.
6 The legislature further finds that the counties have an
7 interest in redistricting these lands as they may contain lots
8 and uses that are non-conforming or of insufficient size to
9 support commercial agricultural use.
10 Therefore, the purpose of this Act is to allow each of the
11 counties a temporary opportunity to petition the state land use
12 commission for a district boundary amendment to reclassify
13 certain lands within the agricultural district to the rural
14 district pursuant to the district boundary amendment process .
15 SECTION 2 . Chapter 205, Hawaii Revised Statutes, is
16 amended by adding a new section to be appropriately designated
17 and to read as follows :
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1 "§205- County plan-based district boundary amendment
2 proceeding; reclassification from agricultural to rural;
3 temporary authorization. (a) Between July 1, 2026, and
4 December 31, 2028, the applicable planning agency of any county
5 may petition the commission for a district boundary amendment to
6 reclassify land within the agricultural district to the rural
7 district that is consistent with a county' s general plan and
8 community development plan land use designations; provided that
9 the following requirements are met :
10 (1) The land has been:
11 (A) Developed, permitted, or intended for single-
12 family residences that are currently in the
13 agricultural district; and
14 (B) Subdivided into lots that are no larger than two
15 acres in size;
16 (2) A residence, as a first or second farm dwelling, has
17 been constructed on each lot, or the lot is part of an
18 agricultural subdivision intended for residential
19 construction as a first or second farm dwelling;
20 (3) The subject land. is not designated as important
21 agricultural lands pursuant to section 205-44 . 5;
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1 (4) The requirements of chapter 343, if applicable, are
2 met at the time the petition is made;
3 (5) The district boundary amendment would not adversely
4 affect the ability of neighboring lands to be used for
5 agricultural purposes;
6 (6) The area for which a district boundary amendment is
7 petitioned is supported by the applicable county plan
8 and community development plan land use designations;
9 (7) The applicable county planning agency provides:
10 (A) All affected landowners reasonable notice of the
11 proposed district boundary amendment petition;
12 (B) The public an opportunity to comment on the
13 proposed district boundary amendment petition;
14 and
15 (C) Procedures for notice and public hearing,
16 including at a minimum: publication of notice of
17 the petition and public hearing in a newspaper of
18 general circulation in the county no less than
19 fourteen days before the hearing; mailed or
20 electronic notice to owners of record of property
21 within a reasonable radius of the subject lands,
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1 as determined by county ordinance or rule; at
2 least one public hearing before the applicable
3 county planning agency at which oral and written
4 testimony shall be accepted; and a written
5 decision or recommendation that includes findings
6 of fact and conclusions of law sufficient to
7 permit judicial review; and
8 (8) The office of planning and sustainable development
9 shall appear as a party to proceedings before the
10 commission; provided that at the county level, the
11 office of planning and sustainable development shall
12 be afforded an opportunity to participate and provide
13 advisory comments, data, and recommendations but shall
14 not be required to intervene as a formal party unless
15 otherwise authorized by law or rule .
16 (b) The commission shall process each petition under this
17 section as a petition for a district boundary amendment pursuant
18 to this chapter, including section 205-4, within three hundred
19 sixty-five days from the date the petition is deemed complete by
20 the commission. If the commission finds that there is
21 insufficient evidence presented by the applicable county
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1 planning agency or that significant public trust issues are
2 presented by the petition, the commission may:
3 (1) Deny the petition in whole or in part; or
4 (2) Schedule a contested case hearing on the matter
5 consistent with its administrative rules .
6 (c) The commission shall adopt rules pursuant to chapter
7 91 to implement this section. "
8 SECTION 3 . New statutory material is underscored.
9 SECTION 4 . This Act shall take effect on July 1, 3000, and
10 shall be repealed on December 31, 2028; provided that any
11 petition filed with the land use commission pursuant to this Act
12 on or before December 31, 2028, shall be processed and decided
13 in accordance with this Act as if this Act had not been
14 repealed.
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2.424.
H.D. 2 Report Title:
Land Use Commission; County Planning Agencies; District Boundary
Amendment Petition; Agricultural District; Rural District
Description:
Between 7/1/2026 and 12/31/2028, authorizes each county planning
agency to petition the Land Use Commission for a district
boundary amendment to reclassify certain lands within the •
agricultural district to the rural district through the district
boundary amendment process. Repeals 12/31/2028 . 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.
•
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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
14 installed or modified individual wastewater systems that are
11 near the shoreline, or likely to pollute groundwater, to include
12 denittification capacity.
f
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:
i
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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
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 i; 2050.
2
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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
7/1/2050.
The,summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
•
REVISED:
1ST DRAFT DATE:
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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
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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, [2030] 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 [201812028.
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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,
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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
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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:
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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;
111 (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 housing project [; providcd furthcr that this paragraph
120 shall apply only if a county amcndcd its surchargc ordinancc
121
122 tax ordinancc aftcr Dcccmbcr 31, 2022; providcd that cach county
123 having a populatiola celttal to or lcss the fivc hundred thousand
124 z sae —�Ee� e age—east-ate t-a erd; p nt
125
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_____
•
126
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 .
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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:
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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, [2030] 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
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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
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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
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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.0
244
245 ,
246 INTRODUCED BY:
247 BY REQUEST
248
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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.
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THE SENATE
THIRTY-THIRD LEGISLATURE, 2025 ■ B . NO .
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. Section 201H-31, Hawaii Revised Statutes, is
2 amended to read as follows:
3 " E+]§201H-31 [}] 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
2025-0059 SB SMA-l.docx
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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 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;
15 (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
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. "
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1 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:
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IN11 INIINNONdNNI NNNIIUNNNNIMIEN
Page4 S . B . NO .
2025-0059 SB SMA-L docx
III_Irylll_�UUII IUIIIU II IIUI IIIUUIIUo UIII�IU I IU_I_;IIIIU UU�II III
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.
2025-0059 SB SMA-l.docx
Intl::1 HILL 11111111111111111111111