Report Title:

Abandoned Property; State Park Maintenance

Description:

Requires that a certain per cent of proceeds from the public sale of abandoned property by the State be deposited in the state parks special fund for the maintenance and repair of state parks; establishes a maximum annual amount of $1,000,000 that can be deposited into the fund.

THE SENATE

S.B. NO.

1501

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to state government.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that state parks have fallen into a state of disrepair as a result of years of neglect. Public facilities at state parks, such as restrooms, are also deteriorating at a rapid pace creating potentially hazardous health and safety conditions for users of state parks. Moreover, the lack of regular maintenance and upkeep with respect to landscaping means that many state parks have become aesthetically unpleasing to visit and enjoy.

The legislature also finds that state parks are an important gathering place for both residents and tourists alike. Residents bring their families and children to state parks while countless tourists visit states parks annually to enjoy Hawaii's climatic weather and scenic beauty as well as learn about Hawaii's native plant and animal species.

The purpose of this Act is provide additional funding for the maintenance and repair of state parks by mandating that a certain per cent of proceeds realized from the public sale of abandoned property by the State be deposited into the state parks special fund for park related maintenance.

SECTION 2. Section 184-3.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established within the state treasury a fund to be known as the state parks special fund, into which shall be deposited:

(1) All proceeds collected by the state parks programs involving park user fees, any leases or concession agreements, the sale of any article purchased from the department to benefit the state parks programs, or any gifts or contributions; provided that proceeds derived from the operation of Iolani Palace shall be used to supplement its educational and interpretive programs; [and]

(2) Transient accommodations tax revenues pursuant to section 237D-6.5(b)(2); provided that these moneys shall be expended in response to a master plan developed in coordination with the Hawaii tourism authority[.]; and

(3) Proceeds derived from the sale of abandoned property at public auction pursuant to section 523A-22; provided that no more than $1,000,000 in proceeds from the public auction shall be deposited into this fund each year for park related maintenance and repair projects."

SECTION 3. Section 523A-22, Hawaii Revised Statutes, is amended to read as follows:

"§523A-22 Public sale of abandoned property. (a) Except as provided in subsections (b) and (c), the director, within three years after the receipt of abandoned property, shall sell it to the highest bidder at public sale wherever in the State affords in the judgment of the director the most favorable market for the property involved. The director may decline the highest bid and reoffer the property for sale if in the judgment of the director the bid is insufficient. If in the judgment of the director the probable cost of sale exceeds the value of the property, it need not be offered for sale. Any sale held under this section shall be preceded by public notice, at least three weeks in advance of sale, in the county in which the property is to be sold.

(b) Securities listed on an established stock exchange shall be sold at prices prevailing at the time of sale on the exchange. Other securities may be sold over the counter at prices prevailing at the time of sale or by any other method the director considers advisable.

(c) Unless the director considers it to be in the best interest of the State to do otherwise, all securities, other than those presumed abandoned under section 523A-10, delivered to the director shall be held for at least one year before the director may sell them.

(d) Unless the director considers it to be in the best interest of the State to do otherwise, all securities presumed abandoned under section 523A-10 and delivered to the director shall be held for at least three years before the director may sell them. If the director sells any securities delivered pursuant to section 523A-10 before the expiration of the three-year period, any person making a claim pursuant to this part before the end of the three-year period is entitled to either the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, whichever amount is greater, less any deduction for fees pursuant to section 523A-23(b). A person making a claim under this part after the expiration of this period is entitled to receive either the securities delivered to the director by the holder, if they still remain in the hands of the director, or the proceeds received from sale, less any amounts deducted pursuant to section 523A-23(b), but no person has any claim under this part against the State, the holder, any transfer agent, registrar, or other person acting for or on behalf of a holder for any appreciation in the value of the property occurring after delivery by the holder to the director.

(e) The purchaser of property at any sale conducted by the director pursuant to this part takes the property free of all claims of the owner or previous holder thereof and of all persons claiming through or under them. The director shall execute all documents necessary to complete the transfer of ownership.

(f) At least     per cent of the proceeds realized from the public sale of abandoned property under this section shall be deposited into the state parks special fund in section 184-3.4 for maintenance and repair projects in the state parks; provided that the total amount of proceeds deposited into this fund shall not exceed $1,000,000 per year."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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