Repeal of Obsolete Statutes

Repeals or makes conforming amendments to various statutes that
have either been repealed by implication, or by their own terms
by operation of law, and are now deemed to be "functus", that is,
have accomplished their intended purpose and are of no further
force or effect.

THE SENATE                              S.B. NO.           2121
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT


 1      SECTION 1.  The legislature finds that several laws in the
 2 Hawaii Revised Statutes and the Session Laws of Hawaii may now be
 3 deemed to be obsolete, or "functus", in that they have
 4 accomplished their intended purpose and are now of no further
 5 force or effect.  These are not laws that have "dropped dead"
 6 because of a separate sunset section, for example, that provides
 7 for their repeal on a certain date or for their reenactment in a
 8 certain form after a section is repealed.  Rather, these are laws
 9 that have been rendered obsolete by their own terms, such as a
10 sunset provision within the text of the section itself.  These
11 sections are repealed by operation of law but are nevertheless
12 considered to be "on the books" because the acts that enacted
13 them were not themselves repealed.  Other types of obsolete laws
14 that may continue to be on the books are laws that have been
15 repealed by implication in a court case.
16      This Act repeals or makes other appropriate amendments to
17 these sections in order to achieve the intent of the legislature
18 and reduce the number of obsolete laws.  A statute that remains
19 in the printed text of the Hawaii Revised Statutes from year to
20 year but which has been repealed by operation of law or by

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 1 implication unnecessarily increases the size of the Hawaii
 2 Revised Statutes, thereby adding to production costs.  Retention
 3 of such a statute may also create some confusion that the law,
 4 while repealed, is still retained "on the books".  Repealing or
 5 amending these sections, as appropriate, therefore assists in the
 6 removal of obsolete laws and helps to clarify which laws are of
 7 continuing force and effect.
 8                              PART I
 9     SECTION 2.  Section 5 of Act 11, Special Session Laws of 1995,
10 enacted the interagency federal revenue maximization revolving fund,
11 which was subsequently codified as section 29-24, Hawaii Revised
12 Statutes.  Both subsection (c) of section 29-24, as well as section 15(3)
13 of Act 11, provided that on June 30, 1999, section 29-24 would be
14 repealed.  As such, section 29-24 would have been deemed to be repealed
15 by operation of law on that date.
16     However, section 28 of Act 160, Session Laws of Hawaii 1999, which
17 became effective on June 29, 1999, deleted section 15(3) of Act 11, one
18 of the two provisions providing for the repeal of section 29-24.
19 Sections 29 and 30 of Act 160 further provide for the use of moneys in
20 the interagency federal revenue maximization revolving fund through
21 fiscal year 2000-2001 by the departments of education and health.  While
22 the intent of the 1999 amendment was to make section 29-24 permanent,
23 however, that amendment nevertheless failed to amend section 29-24 itself

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 1 to remove the automatic repeal date in subsection (c) of that section.
 2     The purpose of this part is therefore to amend section 29-24 by
 3 repealing subsection (c) of that section to conform to the intent of the
 4 1999 amendment and remove ambiguity as to whether that section is
 5 repealed.
 6     SECTION 3.  Section 29-24, Hawaii Revised Statutes, is amended to
 7 read as follows:
 8     "29-24  Interagency federal revenue maximization revolving fund.
 9 (a)  There is established in the state treasury an interagency federal
10 revenue maximization revolving fund into which shall be deposited all
11 funds and proceeds collected from the federal government and third-party
12 payors for costs not previously claimed by the State, with the exception
13 of proceeds collected for services provided by the Hawaii health systems
14 corporation, for reimbursement by federally-funded state programs.  For
15 purposes of this chapter, federally-funded state programs include but
16 shall not be limited to those federally-funded programs within the
17 departments of human services, education, and health.  Expenditures and
18 transfers from the fund shall be made by the comptroller in proportional
19 allocations established by the comptroller and the director of finance.
20 Transfers shall be made to the department claiming the reimbursement for

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 1 expenses incurred related to federal fund reimbursement claims and to the
 2 general fund of the State.  Moneys in the fund may be expended for
 3 consultant services rendered under subsection (b).
 4     (b)  Notwithstanding any other law to the contrary, the comptroller,
 5 by contract, may retain the services of certified public accountants and
 6 other consultants to pursue and collect federal fund reimbursements, and
 7 perform other duties necessary to administer this section.  At the option
 8 of the comptroller, consultants retained by contract under this
 9 subsection may be compensated on:
10     (1)  A fixed-price basis;
11     (2)  An hourly rate basis with or without a fixed cap; or
12     (3)  Through a contingent fee arrangement specified in the contract.
13 Such compensation shall be payable out of all sums the consultant
14 recovers for the State.
15     [(c)  All unobligated, unencumbered, or unexpended funds remaining in
16 the interagency federal revenue maximization revolving fund as of
17 June 30, 1999, shall revert to the general fund of the State.  Upon final
18 disbursement of remaining balances to the general fund on June 30, 1999,
19 the interagency federal revenue maximization revolving fund shall be

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 1 terminated.
 2     (d)] (c)  No later than twenty days prior to the convening of each
 3 regular session of the legislature, the comptroller shall submit to the
 4 legislature a report including the following information:
 5     (1)  Itemized amounts of all federal reimbursements;
 6     (2)  Description and amounts of all expenses incurred by the fund;
 7     (3)  Method of compensation and amounts of compensation for all
 8          certified public accountants and other consultants retained by
 9          the comptroller to pursue and collect federal fund
10          reimbursements and perform other duties necessary to administer
11          this section;
12     (4)  Method of determining allocation of funds;
13     (5)  Amounts allocated by the comptroller; and
14     (6)  Fund balances."
15                                  PART II
16     SECTION 4.  Subsection (c) of section 87-25.5 provides for the repeal
17 of that section on June 30, 1999.  Since that section was never amended
18 to extend its repeal date, section 87-25.5 was repealed by operation of
19 law on that date.  Accordingly, the purpose of this part is to repeal
20 section 87-25.5.
21     SECTION 5.  Section 87-25.5, Hawaii Revised Statutes, is repealed.

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 1     ["[87-25.5]  Reciprocal beneficiary family coverage defined;
 2 reciprocal beneficiary employees, State and counties, and fund
 3 responsibility costs.(a)  The board of trustees shall establish a
 4 reciprocal beneficiary family coverage health benefits plan for an
 5 employee who is a reciprocal beneficiary under chapter 572C and elects to
 6 enroll in reciprocal beneficiary family coverage.
 7     (b)  As used in this section, reciprocal beneficiary family coverage
 8 means coverage under a health benefits plan that insures, originally or
 9 upon subsequent amendment, an employee who is a reciprocal beneficiary,
10 the other party to the employee's reciprocal beneficiary relationship,
11 and any dependent-beneficiary of the employee, any unmarried child of the
12 non-employee reciprocal beneficiary under age nineteen, or a surviving
13 beneficiary of the employee.
14     (c)  This section shall be repealed on June 30, 1999."]
15                                 PART III
16     SECTION 6.  Subsection (g) of section 235-55.9, Hawaii Revised
17 Statutes, provides for the repeal of that section on June 30, 1997.
18 Since that section was never amended to extend its repeal date, section
19 235-55.9 was repealed by operation of law on that date.  Accordingly, the
20 purpose of this part is to repeal section 235-55.9.

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 1     SECTION 7.  Section 235-55.9, Hawaii Revised Statutes, is repealed.
 2     ["235-55.9  Medical services excise tax credit.(a)  Each resident
 3 individual taxpayer, who files an individual income tax return for a
 4 taxable year, and who is not claimed or is not otherwise eligible to be
 5 claimed as a dependent by another taxpayer for Hawaii state individual
 6 income tax purposes, may claim a medical services excise tax credit
 7 against the resident taxpayer's individual income tax liability for the
 8 taxable year for which the individual income tax return is being filed;
 9 provided that a resident individual who has no income or no income
10 taxable under this chapter and who is not claimed or is not otherwise
11 eligible to be claimed as a dependent by a taxpayer for Hawaii state
12 individual income tax purposes may claim this credit.
13     (b)  The medical services excise tax credit shall be six per cent of
14 the nursing facilities expenses paid by or for the resident individual
15 during the taxable year.
16     (c)  For the purposes of this section "nursing facility expenses" are
17 amounts actually paid by the taxpayer for services provided to the
18 taxpayer or to any individual who bears a relationship to the taxpayer as
19 described in section 152(a) (with respect to dependent defined) of the

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 1 Internal Revenue Code by a nursing facility licensed under section 321-9
 2 and 321-11 and any intermediate care facility for mentally retarded
 3 persons under sections 321-9 and 321-11; provided that the nursing
 4 facility expense was subject to the imposition and payment of the tax
 5 imposed by chapter 346E.
 6     The amount of nursing facility expenses paid during the taxable year
 7 shall not be reduced by any insurance reimbursement.
 8     (d)  The tax credits claimed by a resident taxpayer pursuant to this
 9 section shall be deductible from the resident taxpayer's individual
10 income tax liability, if any, for the tax year in which they are properly
11 claimed.  If the tax credits claimed by a resident taxpayer exceed the
12 amount of income tax payment due from the resident taxpayer, the excess
13 of credits over payments due shall be refunded to the resident taxpayer;
14 provided that tax credits properly claimed by a resident individual who
15 has no income tax liability shall be paid to the resident individual; and
16 provided further that no refunds or payment on account of the tax credits
17 allowed by this section shall be made for amounts less than $1.
18     (e)  The director of taxation shall prepare such forms as may be
19 necessary to claim a credit under this section.  The director may also
20 require the taxpayer to furnish reasonable information in order that the
21 director may ascertain the validity of the claim for credit made under

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 1 this section and the director may adopt rules necessary to effectuate the
 2 purposes of this section pursuant to chapter 91.
 3     (f)  All claims for tax credits under this section, including any
 4 amended claims, must be filed on or before the end of the twelfth month
 5 following the close of the taxable year for which the credits may be
 6 claimed.  Failure to comply with the foregoing provision shall constitute
 7 a waiver of the right to claim the credit.
 8     (g)  This section shall not be effective after June 30, 1997."]
 9                                  PART IV
10     SECTION 8.  In the case of Gardens at West Maui v. County of Maui, 90
11 H. 334, 978 P.2d 772 (1999), the Hawaii supreme court found section 248-
12 2, Hawaii Revised Statutes, to have been repealed by implication.  That
13 section allows the council of each county to increase or decrease real
14 property taxes in that county for each tax year and provides for a
15 determination of tax rates.
16     In 1977, section 248-2 was amended to preclude differential tax
17 rates.  However, article VIII, section 3 of the Hawaii Constitution,
18 which expressly transferred to the counties broad powers of real property
19 taxation and which contains no provisions limiting or restricting the tax
20 rate structure determined by the counties, and section 246A-2, Hawaii

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 1 Revised Statutes, which implemented that constitutional amendment in
 2 1980, were enacted subsequent to the 1977 amendment to section 248-2,
 3 thereby fully superseding that section, according to the supreme court.
 4 According to the court:  "The participants of the 1978 constitutional
 5 convention and the 1980 legislature are presumed to have been aware of
 6 the 1977 amendment to HRS 248-2 and are therefore presumed to have
 7 repealed it by implication."  Id., 90 H. at 341.
 8     Because article VIII, section 3 of the Hawaii Constitution and
 9 section 246A-2 covered the entire subject of the counties' real property
10 taxation power and embraced the entire law on that matter, section 248-2,
11 by limiting Maui county's real property taxation powers, was found by the
12 court to be in conflict and was repealed by implication.  Accordingly,
13 the purpose of this part is to repeal section 248-2, Hawaii Revised
14 Statutes.
15     SECTION 9.  Section 248-2, Hawaii Revised Statutes, is repealed.
16     ["248-2 Real property tax; determination of rates.(a)  The
17 council of each county may increase or decrease the tax rate at which
18 real property in that county shall be taxed for each tax year.  A
19 resolution increasing or decreasing the tax rate in each county shall be
20 adopted on or before June 20 preceding the tax year for which property

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 1 tax revenues are to be raised according to the following procedures:
 2     (1)  After determining that any tax rate certified by the director of
 3          taxation under subsection (d) should be increased or decreased
 4          and the date of a public hearing concerning such determination,
 5          the council shall advertise its intention to increase or
 6          decrease the tax rate and the date, time, and place of the
 7          public hearing in a newspaper of general circulation in the
 8          county in which the rates are to be increased or decreased.  The
 9          date of the public hearing shall be not less than ten days after
10          the advertisement is first published and shall set forth the tax
11          rate to be considered by the council.
12     (2)  After the public hearing provided for in paragraph (1), the
13          council shall readvertise and reconvene within two weeks to
14          adopt a resolution fixing the tax rate for the tax year for
15          which property tax revenues are to be raised.  The advertisement
16          shall state the new rate to be fixed and the amount of the
17          increase or decrease, and the date, time, and place of the
18          public hearing scheduled for fixing such rate.  The date, time,
19          and place of the public hearing shall also be announced at the

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 1          public hearing required by paragraph (1).  If the resolution
 2          fixing the tax rate is not adopted within two weeks from the
 3          public hearing required by paragraph (1), the council shall
 4          again advertise and meet as required by paragraph (1).
 5     (3)  If after adopting an increase or decrease in the tax rate as
 6          provided by paragraphs (1) and (2), the council determines that
 7          it requires a further increase or decrease in a tax rate or
 8          fails to act in any specified period, the council shall
 9          readvertise and follow the requirements of paragraphs (1) and
10          (2).
11     If the council of each county does not increase or decrease the tax
12 rate certified to the council by the director of taxation under
13 subsection (d) as provided in this subsection, the tax rate so certified
14 shall be the tax rate in the county for the tax year for which the
15 property tax revenues are to be raised.
16     (b)  The council of each county shall increase or decrease the tax
17 rate applicable in the county using the following method:
18     (1)  The total revenue to be raised from real property in the county
19          shall be divided by the aggregate value of the taxable real
20          property within the county.  The aggregate value of taxable real
21          property within the county shall mean the net assessed value of

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 1          all real property in the county as of April 19 preceding the tax
 2          year.  In all cases where appeals from the assessment of the
 3          department of taxation have not yet been finally determined, the
 4          values used in determining the aggregate shall be the value
 5          claimed by the taxpayer in each case, plus fifty per cent of the
 6          value in dispute.
 7     (2)  The rate shall be expressed in terms of the tax per $1,000 of
 8          assessed value of taxable real property in the county, provided
 9          that the applicable rate for each county shall be computed to
10          the nearest cent.
11     (c)  If the tax rate for the tax year in any county is increased or
12 decreased, the council shall notify the director of taxation of the
13 increased or decreased rate, and the director shall employ such rate in
14 the levying of property taxes in that county as provided by law.
15     (d)  The director of taxation shall on or before May 1 preceding the
16 tax year furnish each council with a calculation certified by the
17 director as being as nearly accurate as may be, of the aggregate value of
18 taxable real property within the county plus such additional data
19 relating to the property tax base as the council may request in writing.
20 In addition, the director shall certify to the council of each county,
21 the tax rate for the forthcoming tax year in each county by determining

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 1 such tax rate by the method established in subsection (b) and by using
 2 the aggregate value of taxable real property within the county for the
 3 forthcoming year and the county's real property revenues for the current
 4 year.  Upon its determination such tax rate shall be the tax rate for the
 5 county for the forthcoming tax year, unless the county increases or
 6 decreases the tax rate as provided in subsection (a).
 7     (e)  Insofar as the validity of any tax rate is concerned, the
 8 provisions of subsections (a) and (d) of this section as to dates, shall
 9 be deemed directory; provided that all other provisions of subsections
10 (a) and (d) and all provisions of subsections (b) and (c) shall be deemed
11 mandatory.
12     (f)  Notwithstanding any provision to the contrary, there shall be
13 levied upon each individual parcel of real property taxable under chapter
14 246 a minimum real property tax of $7 a year."]
15                                  PART V
16     SECTION 10.  If any provision of this Act, or the application thereof
17 to any person or circumstance is held invalid, the invalidity does not
18 affect other provisions or applications of the Act which can be given
19 effect without the invalid provision or application, and to this end the
20 provisions of this Act are severable.

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 1     SECTION 11.  Statutory material to be repealed is bracketed.  New
 2 statutory material is underscored.
 3     SECTION 12.  This Act shall take effect upon its approval.
 5                              INTRODUCED BY:______________________