Report Title:

Mass Transit Route Economic Zone Task Force

 

Description:

Creates a task force to recommend parameters for the creation of mass transit route economic zones including eligibility and benefits and incentives such as tax credits.  Report to legislature, including process to designate economic zones and incentives to attract businesses and affordable housing to encourage ridership.  Task force terminates on 06/30/10.  Effective 07/01/2020.  (HB617 HD2)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

617

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO MASS TRANSIT ROUTE ECONOMIC ZONES.

 

 

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

 


     SECTION 1  (a)  There is created the temporary mass transit route economic zone task force within the department of business, economic development, and tourism for administrative purposes only.  The task force shall be chaired by the director of business, economic development, and tourism, who shall be a voting member.  The task force shall also consist of the following members or their designees:

     (1)  Director of transportation;

     (2)  Director of taxation;

     (3)  Director of finance;

     (4)  Director of labor and industrial relations;

     (5)  Director of the department of planning and permitting of the city and county of Honolulu;

     (6)  Chairperson of the board of land and natural resources;

     (7)  Executive director of the Hawaii community development authority;

     (8)  Chairperson of the board of the Hawaii housing finance and development corporation;

     (9)  President of the University of Hawaii;

    (10)  Mayor of the city and county of Honolulu;

    (11)  Chairperson of the council of the city and county of Honolulu;

    (12)  Two members appointed by the president of the senate; and

    (13)  Two members appointed by the speaker of the house of representatives.

     (b)  The members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (c)  The task force shall convene its first meeting no later than twenty days after the effective date of this Act.

     (d)  The task force shall examine the concept and feasibility of establishing economic zones proximate to the route or routes of any future mass transit system on the island of Oahu, particularly in the areas surrounding transit stops that are economically depressed.  The task force shall consider, evaluate, and determine at least the following components and structure of a mass transit route economic zone:

     (1)  Criteria for an economic zone, including geographic, demographic, income, or any other criteria;

     (2)  Criteria for eligibility as a participating business, entity, or organization to receive benefits in an economic zone, including any eligibility restrictions, conditions, or exclusions from participation such as minimum required employment, gross revenues, type of business or service, and any other conditions;

     (3)  Benefits to be offered to qualified participants, including:  tax credits for income tax, general excise and use tax, and county real property tax; incentives including regulatory flexibility and permit processing procedures; and any other benefits the task force determines should be considered;

     (4)  The range, amount, and duration of any benefits to be offered to qualified participants;

     (5)  Whether there will be a focus on affordable housing, medical services, or any other particular type of participating business, entity, or organization in an economic zone;

     (6)  Consideration of the possibility of granting benefits similar to those available in a state enterprise zone pursuant to chapter 209E, Hawaii Revised Statutes;

     (7)  The need for the exercise of the power of eminent domain;

     (8)  Potential jurisdictional conflicts between the State and the city and county of Honolulu;

     (9)  Estimates of the costs of implementing mass transit route economic zones; and

    (10)  Any other issue deemed relevant by the task force.

     (e)  The task force shall submit a report of findings and recommendations, including any necessary proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2010.  The task force report shall include:

     (1)  The process by which the department of business, economic development, and tourism will designate a particular area a mass transit route economic zone, including the procedure by which the council of the city and county of Honolulu and the mayor of the city and county of Honolulu may apply for economic zone status; and

     (2)  A complete and detailed description of the incentives and benefits available within a mass transit route economic zone, especially incentives to attract businesses and the development of affordable housing near transit stations to encourage ridership.

     (f)  The task force shall terminate on June 30, 2010.

     SECTION 2.  This Act shall take effect on July 1, 2020.