HOUSE OF REPRESENTATIVES

H.B. NO.

2592

TWENTY-NINTH LEGISLATURE, 2018

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO WATER.

 

 

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

 


     SECTION 1.  The legislature finds that Hawaii's surrounding ocean waters, streams, groundwater, watersheds, and other sources of fresh water are vulnerable to pollution and contamination from cesspools, which discharge raw, untreated sewage into the ground, and nonpoint source pollution that flows off the land directly into the ocean.

     The legislature further finds that in other jurisdictions, tax increment financing is an established means to finance infrastructure projects.  However, in Hawaii, questions regarding whether the counties are constitutionally authorized to implement tax increment financing to fund projects have arisen, and whether tax increment financing would generate sufficient revenue to fund significant capital projects.

     The purpose of this Act is to establish a working group to determine:

     (1)  The viability of using revenues derived from tax increment financing to provide incentives to developers to adequately fund water conservation, environmental protection, and safe drinking water projects; and

     (2)  Whether the Hawaii State Constitution permits the counties to use tax increment financing.

     SECTION 2.  (a)  There is established within the department of the attorney general for administrative purposes a working group to assess the use of tax increment financing by the counties to fund incentives for the development of water-related infrastructure projects and other projects to protect water resources in the State.

     (b)  The working group shall comprise of the following individuals or their designees:

     (1)  The attorney general;

     (2)  The director of finance;

     (3)  The chairperson of the board of land and natural resources;

     (4)  The director of health;

     (5)  The executive director of the land use commission; and

     (6)  The mayors of each county of the State.

     (c)  No later than twenty days prior to the convening of the 2019 regular session, the working group shall submit a report to the legislature on:

     (1)  The viability of using tax increment financing as a means to incentivize developers to construct necessary water-related infrastructure projects and other projects, including projects that protect drinking water and watersheds, prevent water pollution, promote cesspool conversion, and otherwise prevent events that may adversely impact water quality;

     (2)  Whether article VII, section 12 of the Hawaii State Constitution empowers the legislature to authorize the counties to establish tax increment financing through statute;

     (3)  Findings and recommendations; and

     (4)  Proposed legislation to address any recommendations made by the working group.

     SECTION 5.  The working group shall cease to exist on June 30, 2019.

     SECTION 6.  This Act shall take effect on July 1, 2050.


 


 

Report Title:

Water; Tax Increment Financing; LUC; AG; Working Group; Counties

 

Description:

Establishes a working group within the Department of the Attorney General to assess the viability and constitutionality of using tax increment financing on the county level as a means of incentivizing water-related infrastructure projects.  (HB2592 HD1)

 

 

 

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