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HomeMy WebLinkAboutRES 664 Draft 02 2024-2026 J�tY ovy�±. • COUNTY OF HAWAI`I ':"..-- .i. STATE OF HAWAI`I OFF.-• RESOLUTION NO. 664 26 (Draft 2) 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 Hawaii 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 Hawai`i County Council to approve proposals and priorities to be considered for the 2027 HSAC package;and WHEREAS, legislative proposals submitted by Hawaii 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; 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 6. A draft bill to allow the counties to regulate the sale of tobacco products; 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; • f 5. Legislation related to economic development and diversification,and the administration of the Department of Business,Economic Development and Tourism and the Department of Commerce and Consumer Affairs; 6. Legislation related to wastewater infrastructure, cesspool conversion,and related • financing; 7. Legislation related to Act 212, Session Laws of Hawai`i 2025, and the implementation of safe routes to school programs; 8. Legislation related to increasing funds for emergency preparedness,evacuation routes,notification systems,and community-level emergency planning; 9. Legislation related to responsible game management of wild ungulates;and 10. Legislation related to increasing wages; 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: • /4411,t,v 07:='/(1„:1: ef FATHER 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 Hawaii on KANEALI`I-KLEINFELDER KIERKIEWICZ ATTEST: KIMBALL ONISHI VILLEGAS Reference: C-1048.2%GEAC-163 COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. G6 26—. (Draft 2) • I I JIIIIIIIII [III 2 LRB 26-090 D1 1 f 1 EXHIBIT A I THE SENATE S. B. NO. 2635 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 kole (goldring surgeonfish) , have in fact been used SB LRB 26-0278.docx 1 1111.11111111I19I01 d EIEN l81 Paget S . B. NO. 7,0r3 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 SB LRB 26-0278 .docx 2 I1IIIIIIILIIIIIUIIIIE IIIIIIIlINI Page 3 SB. NO . ,gpr3 S 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 SB LRB 26-0278.docx 3 III_III I�II���II�IIII IIIIIII� II`�Ifll Page4 S . B . NO. zS3S 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; 1 SBnnLRB 26-0278.docx 4 Pages S . B. NO. zS3S 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 iscuancc of any aquarium fish permits, pursuant to 19 ccction 188 31; ] 20 (4) Fishing with the use of gill nets; SB LRB 26-0278 .docx 5 11.11111111110111111111111111 Page 6 S . B • NO. Z.� 3S 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 SB LRB 26-0278.docx 6 iI[ FII1111 1 81111111111111 Pagel S . B. NO. Z 3S 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; SBp LRpBp 26-0p278.docx 7 IIII I_IIIMI���M ����]1ll IN DIII Page S . V. NO. 2c3S 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, rcgardlcc3 of 10 wcight, thc numbcr and spccico of thc fishcs; 11 and] 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 SB LRB 26-0278 .docx 8 1I1IID1III1:11In81lI 11II1IIII II • NO .c V . R V. Z53S 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 ["5188-31 Pcrmito to take aquatic life- for aquarium 6 purposes. (a) Except as prohibited by law, the department, 7 upon receipt of a written application, may issue an aquarium 8 fish permit, not longer than one y ar in duration, to use fine 9 meshed traps, or fine meshed nets other than throw nit €e=- � 10 taking of marine or freshwater nongamc fish and other aquatic 11 life for aquarium purposes. 12 (b) Except as prohibited by law, the permits shall be 13 issued only to persons who can satisfy--tie--depa-rtment than ey 14 possess facilities to and can maintain fish and other aquatic 15 life alive and in reasonable health. 16 (c) It shall be illegal to 3c11 or offer for sale any fish 17 and other agnatic life taken under an aquarium fish permit 18 unless those fish and other aquatic life arc sold alive for 19 aquarium purposes. 20 The department may adopt rules pursuant to chapter 91 for 21 the purpose of this section. SB LRB 26-0278 .docx 9 k0�I.IIIIII II1IIII IflII01IIl_IIII Page 90 S . B. NO . ;53S 1 (d) For thc purposes of this section: 2 (1) "Aquarium purposes" means to hold salt water fish, 3 freshwater nongamc fish, or other aquatic life alivc 4 in a statc of captivity as pets, for scientific study, 5 or for public exhibition or display, or for sale for 6 these purposcs; and 7 (2) "Aquarium fish permit" means a permit issued by the 8 board for thc use of fine mcsh ncts and traps to take 9 salt water fish, frcshwatcr nongamc fish, or other 10 aquatic life for aquarium purposes. "] 11 SECTION 6. Section 188-31.5, Hawaii Revised Statutes, is 12 repealed. 13 [" [5188-31.5] Aquarium fish for export; monthly count. 14 The department of land and natural resources shall adopt rules 15 in accordance with chapter 31 to monitor the aquarium fish catch 16 report and fish dealer' s report for export of aquarium fish 17 taken from the waters of the State for aquarium purposes 18 pursuant to section 188 31. A monthly count of the quantities 19 taken of each individual species of aquarium fish exported shall 20 be reported to the board. "] ISIB (�LRB� I26-027p8. IdocxFll 10 111111 f�I111�I11 II��811111INI1n1�91�1 1 Page 11 S . B . NO. 7S3S 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 SB LRB 26-0278 .docx ii 1n1111111IIM0_I{IIIIIHIE S . B . NO. ZS3S' 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 I11Il111111 I1111011111li Il1111n II n HOUSE OF REPRESENTATIVES 2424 THIRTY-THIRD LEGISLATURE, 2026 H B N p 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 : 2026-2249 HB2424 HD2 HMSO NO,IIII IVIn_1I1 _1_II_l I E111Q1111I ill HiIHO Page 2 2424 H . B . NJ . H.D. 2 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; 2026-2249 HB2424 HD2 HMSO 2 IQ I ntl IIII ari rI Off_ war L I!Hr II 1H �I Page3 H . B . NO . H.D. 2 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 1 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, 2026-2249 HB2424 HD2 HMSO 3 I��I III 1111 III 0� 1110_I III l IN_1 HIIIH Page 4 2424 HB . NO . H.D. 2 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 2026-2249 HB2424 HD2 HMSO 4 II ON 11111 _-11 _ _ III_I_CU_Inll�l�I I II I� Page 5 2424 H . B . NO . H.D. 2 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. 2026-2249 HB2424 HD2 HMSO 5 IIII I I IIDBlI III FIII1II II II 1 1111 r HB . NO . 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. 2026-2249 HB2424 HD2 HMSO III 1III II1 1n III I fHIli[1_I_IIMOOh.H flM IlM Ia . . B. NO. 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 denitrification capacity. 13 SECTION 2. Chapter 342D, Hawaii Revised Statutes, is 14 amended by adding a new section to part III to be appropriately 1 15 designated and to read as follows: i Page t . B, NC). 1 °0342D- 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 1 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 . . B. NO. 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: . B. NO . A BILL FOR AN ACT RELATING TO GENERAL EXCISE TAX. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1 . The Legislature hereby finds the need to extend 2 the county surcharge on state general excise and use taxes, 3 which was enacted by Act 247, Session Laws of Hawaii 2005 4 (Surcharge) . 5 6 SECTION 2 . Section 46-16. 8, Hawaii Revised Statutes, is 7 amended to read as follows: 8 "§46-16.8 County surcharge on state tax. (a) Each county 9 may establish a surcharge on state tax at the rates enumerated 10 in sections 237-8 . 6 and 238-2. 6. A county electing to establish 11 this surcharge shall do so by ordinance; provided that: 12 (1) No ordinance shall be adopted until the county 13 has conducted a public hearing on the proposed ordinance; 14 (2) The ordinance shall be adopted before December 15 31, 2005; and 16 (3) No county surcharge on state tax that may be 17 authorized under this subsection shall be levied before January XXX-00 Page 2 B. NO . 18 1, 2007, or after December 31, 2022, unless extended pursuant to 19 subsection (b) . 20 Notice of the public hearing required under paragraph (1) 21 shall be published in a newspaper of general circulation within 22 the county at least twice within a period of thirty days 23 immediately preceding the date of the hearing. 24 A county electing to exercise the authority granted 25 under this subsection shall notify the director of taxation 26 within ten days after the county has adopted a surcharge on 27 state tax ordinance and, beginning no earlier than January 1, 28 2007, the director of taxation shall levy, assess, collect, and 29 otherwise administer the county surcharge on state tax. 30 (b) Each county that has established a surcharge on 31 state tax before July 1, 2015, under authority of subsection (a) 32 may extend the surcharge until December 31, [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 [2018] 2028. XXX-00 Page 3 . B. NO . 39 A county electing to exercise the authority granted 40 under this subsection shall notify the director of taxation 41 within ten days after the county has adopted an ordinance 42 extending the surcharge on state tax. The director of taxation 43 shall levy, assess, collect, and otherwise administer the 44 extended surcharge on state tax. 45 (c) Each county that has not established a surcharge 46 pursuant to subsection (a) on state tax before July 1, 2015, may 47 establish the surcharge at the rates enumerated in sections 237- 48 8 . 6 and 238-2 . 6. A county electing to establish this surcharge 49 shall do so by ordinance; provided that: 50 (1) No ordinance shall be adopted until the county 51 has conducted a public hearing on the proposed ordinance; 52 (2) The ordinance shall be adopted before December 53 31, 2023; and 54 (3) No county surcharge on state tax that may be 55 authorized under this subsection shall be levied before January 56 1, 2019, or after December 31, [2030] 2045. 57 A county electing to exercise the authority granted 58 under this subsection shall notify the director of taxation 59 within ten days after the county has adopted a surcharge on 60 state tax ordinance. Beginning on January 1, 2019, January 1, XXX-00 Page 4 . B. NO . 61 2020, January 1, 2024, or January 1, 2025,. as applicable 62 pursuant to sections 237-8 . 6 and 238-2. 6, the director of 63 taxation shall levy, assess, collect, and otherwise administer 64 the county surcharge on state tax. 65 (d) Each county that has established a surcharge on 66 state tax before March 31, 2019, under subsection (a) or (c) may 67 amend the surcharge ordinance to change the authorized uses of 68 surcharge revenues, pursuant to subsection (g) ; provided that: 69 (1) No ordinance shall be amended pursuant to this 70 section until the county has conducted a public hearing on the 71 proposed amendment; and 72 (2) The ordinance shall be amended before December 73 31, 2023. 74 (e) Notice of the public hearing required under 75 subsection (b) , (c) , or (d) , before adoption or amendment of an 76 ordinance establishing or extending the surcharge on state tax 77 shall be published in a newspaper of general circulation within 78 the county at least twice within a period of thirty days 79 immediately preceding the date of the hearing. 80 (f) Each county with a population greater than five 81 hundred thousand that adopts or extends a county surcharge on 82 state tax ordinance pursuant to subsection (a) or (b) shall use XXX-00 Page 5 . B . NO . 83 the surcharge revenues received from the State for capital costs 84 of a locally preferred alternative for a mass transit project; 85 provided that revenues derived from the county surcharge on 86 state tax shall not be used: 87 (1) To build or repair public roads or highways, 88 bicycle paths, or support public transportation systems already 89 in existence before July 12, 2005; 90 (2) For operating costs or maintenance costs of the 91 mass transit project or any purpose not consistent with this 92 subsection; or 93 (3) For administrative or operating, marketing, or 94 maintenance costs, including personnel costs, of a rapid 95 transportation authority charged with the responsibility for 96 constructing, operating, or maintaining the mass transit 97 project; provided further that nothing in this section shall be 98 construed to prohibit a county from using county funds that are 99 not derived from a surcharge on state tax for a purpose 100 described in paragraph (2) or (3) . 101 (g) Each county having a population equal to or less 102 than five hundred thousand that adopts a county surcharge on 103 state tax ordinance pursuant to this section shall use the 104 surcharges received from the State for: XXX-00 Page 6 . B. NO . 105 (1) Operating or capital costs of public 106 transportation within each county for public transportation 107 systems, including: 108 (A) Public roadways or highways; 109 (B) Public buses; 110 (C) Trains; 1 111 (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 pursuant to subsection (d) or adopts a county surchargc on state- 122 tax ordinancc aftcr December 31, 2022; providcd that cach county 123 having a population cqual to or less than fivc hundred thousand 124 that adopts a county surchargc on state- tax ordinancc pursuant 125 to this section aftcr Dcccmbcr 31, 2022, shall use the surchargc XXX-00 ( Page 7 . B. NO . 126 revenues received from thc State only for thc purposes described 127 in paragraph (3) ] . 128 (h) As used in this section: 129 "Capital costs" means nonrecurring costs required to 130 construct a transit facility or system, including debt service, 131 costs of land acquisition and development, acquiring of rights- 132 of-way, planning, design, and construction, and including 133 equipping and furnishing the facility or system. For a county 134 with a population greater than five hundred thousand, capital 135 costs also include non-recurring personal services and other 136 overhead costs that are not intended to continue after 137 completion of construction of the minimum operable segment of 138 the locally preferred alternative for a mass transit project. 139 "Housing infrastructure" includes pedestrian paths or 140 sidewalks on a county road near or around a public school, and 141 water, drainage, sewer, water reuse, waste disposal, and waste 142 treatment systems that connect to the infrastructure of the 143 county." 144 SECTION 3. Section 237-8 . 6, Hawaii Revised Statutes, is 145 amended to read as follows: 146 §237-8.6 County surcharge on state tax; 147 administration. (a) The county surcharge on state tax, upon the XXX-00 Page 8 . B. NO . 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: XXX-00 Page 9 . B. NO . 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 XXX-00 Page 10 . B. NO . 192 entered into before June 30 of the year prior to the taxable 193 year in which the taxes become effective, and the written 194 contracts do not provide for the passing on of increased rates 195 of taxes, the county surcharge on state tax shall not be imposed 196 on the gross proceeds or gross income covered under the written 197 contracts. The county surcharge on state tax shall be imposed 198 on the gross proceeds or gross income from all contracts entered 199 into on or after June 30 of the year prior to the taxable year 200 in which the taxes become effective, regardless of whether the 201 contract allows for the passing on of any tax or any tax 202 increases . 203 (d) No county surcharge on state tax shall be 204 established on any: 205 (1) Gross income or gross proceeds taxable under this 206 chapter at the one-half per cent tax rate; 207 (2) Gross income or gross proceeds taxable under this 208 chapter at the 0. 15 per cent tax rate; or 209 (3) Transactions, amounts, persons, gross income, or 210 gross proceeds exempt from tax under this chapter. 211 (e) The director of taxation shall revise the general 212 excise tax forms to provide for the clear and separate XXX-00 Page 11 . B. NO . 213 designation of the imposition and payment of the county 214 surcharge on state tax. 215 (f) The taxpayer shall designate the taxation 216 district to which the county surcharge on state tax is assigned 217 in accordance with rules adopted by the director of taxation 218 under chapter 91 . The taxpayer shall file a schedule with the 219 taxpayer' s periodic and annual general excise tax returns 220 summarizing the amount of taxes assigned to each taxation 221 district. 222 (g) The penalties provided by section 231-39 for 223 failure to file a tax return shall be imposed on the amount of 224 surcharge due on the return being filed for the failure to file 225 the schedule required to accompany the return. In addition, 226 there shall be added to the tax an amount equal to ten per cent 227 of the amount of the surcharge and tax due on the return being 228 filed for the failure to file the schedule or the failure to 229 correctly report the assignment of the general excise tax by 230 taxation district on the schedule required under this 231 subsection. 232 (h) All taxpayers who file on a fiscal year basis 233 whose fiscal year ends after December 31 of the year prior to 234 the taxable year in which the taxes become effective, shall file XXX-00 Page 12 B. NO . 235 a short period annual return for the period preceding January 1 236 of the taxable year in which the taxes become effective. Each 237 fiscal year taxpayer shall also file a short period annual 238 return for the period starting on January 1 of the taxable year 239 in which the taxes become effective, and ending' before January 1 240 of the following year. 241 SECTION 4 . Statutory material to be repealed is bracketed 242 and stricken. New statutory material is underscored. 243 SECTION 5. This Act shall take effect upon its approval. 244 245 246 INTRODUCED BY: 247 BY REQUEST 248 XXX-00 Page 13 . B. NO . Report Title: [Click here and type Report Title (1 line limit) ] Description: [Click here and type Description (5 line limit) ] The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. XXX-00 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 " [4]§201H-31[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 2025-0059 SB SMA-1.docx MI911 UlI Fill II M Page 2 S . B. No . 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. " 2025-0059 SB SMA-l.docx 2 IR ova ino 1. Page 3 S . B. NO . 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: 2025-0059 SB SMA-1.docx 3 11111111111LIALLIONIII 1 P ag e 4 S . B . NO . 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 I1lll11_ 11 =L 111111_Ild111I1i11_ .B. NO. A BILL FOR AN ACT RELATING TO TOBACCO PRODUCTS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that tobacco use remains 2 the leading cause of preventable death in the United States, 3 including Hawaii. The legislature further finds that there has 4 been a precipitous increase in recent consumer sales of 5 electronic smoking devices, sometimes called "vapes" or "e- 6 cigarettes," which contain significantly higher levels of • 7 nicotine per inhalation compared to conventional cigarettes. 8 These devices have been linked to severe lung disease, potential 9 harm to brain development, and acute nicotine poisoning. 10 The legislature finds that counties are uniquely positioned 11 to quickly address the health habits of their communities, such 12 as youth vaping, and have been utilizing that ability to great 13 success. Historically, Hawaii has passed forward-thinking 14 legislation to address the high usage of tobacco products. 15 These policies were first adopted at the county level to quickly • 1 .B. NO. 1 address the counties' need to protect their communities from the 2 relentless promotional targeting by tobacco companies. 3 Regulations to raise the minimum age for the purchase of tobacco 4 products to twenty-one years of age was first passed in the 5 county of Hawaii, followed by other counties, and finally by the 6 State to create uniformity. Likewise, laws that prohibit 7 smoking in certain locations, as well as in motor vehicles when 8 a keiki is present, were also initially adopted at the county 9 level before the State took action. 10 The legislature acknowledges that section 328J-11.5(a) , 11 Hawaii Revised Statutes, provides that "[s]ales of cigarettes, 12 tobacco products, and electronic smoking devices are a statewide 13 concern" and that it is "the intent of the legislature to 14 regulate the sale of cigarettes, tobacco products, and 1 15 electronic smoking devices in a uniform and exclusive manner." 16 Section 328J-11.5 (b) , Hawaii Revised Statues, preempts "[a]11 17 local ordinances or regulations that regulate the sale of 18 cigarettes, tobacco products, and electronic smoking devices" 19 and voids "existing local laws and regulations conflicting with" 20 chapter 328J, Hawaii Revised Statutes, which is the State law 21 that regulates smoking. The tobacco industry has historically 2 .B. NO. 1 used preemption as a tactic to prevent local governments from 2 adopting stronger tobacco control measures, thereby protecting 3 its interests at the expense of public health. 4 Section 328J-11.5(c) , Hawaii Revised Statutes, carves out 5 an exception to the exclusivity of state regulations by setting 6 forth that nothing in chapter 328J, Hawaii Revised Statutes, 7 "shall be construed to limit a county's authority" to adopt 8 ordinances; provided that the ordinance is more stringent than 9 state law.. The legislature acknowledges that the language in 10 section 328J-11.5, Hawaii Revised Statutes, read together with 11 section 328J-15, Hawaii Revised Statutes, may create an 12 ambiguity in the effectiveness of county ordinances that are not 13 in conflict with chapter 328J, Hawaii Revised Statutes, and the 14 authority given to the counties in adopting ordinances that 15 regulate the sale of cigarettes, tobacco products, and 16 electronic smoking devices in their communities. 17 The legislature finds that an adaptive regulation system is 18 needed to address the multibillion-dollar marketing campaigns of 19 tobacco companies focused on our youth. All levels of 20 government, including counties, need to collaborate to quickly 21 address the tobacco companies' predatory practices through the 3 .B. NO. 1 implementation of reasonable restrictions on the sale of and 2 access to these addictive products. 3 Accordingly, the purpose of this Act is to: 4 (1) Repeal existing law that provides that all local 5 ordinances or regulations that regulate the sale of cigarettes, 6 tobacco products, and electronic smoking devices are preempted 7 and that existing local laws and regulations conflicting with 8 the State law on smoking are null and void; and 9 (2) Clarify that counties retain the authority to adopt 10 ordinances that regulate the sale of cigarettes, tobacco 11 products, and electronic smoking devices, as long as the 12 ordinances do not conflict with and are more stringent than the 13 State law on smoking. '• 14 SECTION 2. Section 328J-11.5, Hawaii Revised Statutes, is 15 amended to read as follows: 16 "[f]S328J-11.5[}] Statewide concern. (a) Sales of 17 cigarettes, tobacco products, and electronic smoking devices are 18 a statewide concern. It is the intent of the legislature to r 19 regulate the sale of cigarettes, tobacco products, and 20 electronic smoking devices in a uniform [and cxcluoivc] 21 manner[-] to the extent reasonably possible. 4 .B. NO. 1 [ (b) All local ordinanccs er rcgu1atiena that rcqulatc the 2 aalc of cigarcttca, tebacce products-, and cicctrenic smoking 3 devicca arc prcemptcd, and cxisting lecal laws and rcgulationa 4 conflicting with thin chaptcr arc sell and void. 5 4e3-] (b) Nothing in this chapter shall be construed to 6 limit a county's authority [undcr] to enact ordinances that 7 regulate the sale of cigarettes, tobacco products, and 8 electronic smoking devices within the county in accordance with 9 section 328J-15." • 10 SECTION 3. Section 328J-15, Hawaii Revised Statutes, is 11 amended by amending subsection (b) to read as follows: 12 " (b) Nothing in this chapter shall prohibit a county from 13 enacting ordinances that regulate the sale of cigarettes, 14 tobacco products, and electronic smoking devices within the 15 county; provided that the ordinances do not directly conflict 16 with and are more stringent than the provisions of this 17 chapter." 18 SECTION 4. This Act does not affect rights and duties that 19 matured, penalties that were incurred, and proceedings that were 20 begun before its effective date. 5 r .B. NO. r 1 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 approval. 4 5 INTRODUCED BY: 6 } 6 Report Title: Hawaii State Association of Counties{"HSAC); Hawaii State Association of Counties; HSAC Legislative Package;Cigarettes;Tobacco; Electronic Smoking Devices;Vaping; Counties The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. • OCS2025-0684/9/2/2025 1:33 PM