Amends prior session laws to provide funds for infrastructure at Kikala-Keokea.

A BILL FOR AN ACT

SECTION 1. Act 314, Session Laws of Hawaii 1991, as amended, authorized the department of land and natural resources to negotiate and enter into long-term leases with persons of Hawaiian ancestry who were dispossessed or displaced from their homes at Kalapana as a result of the volcanic eruptions on the island of Hawaii. The Act also authorized the department of land and natural resources to subdivide and provide for the creation of a residential subdivision in the Kikala-Keokea homestead area for persons who receive long-term leases from the department of land and natural resources.

The purpose of this Act is to provide funds for the development of infrastructure at Kikala-Keokea by amending Act 242, Session Laws of Hawaii 1991.

SECTION 2. Act 242, Session Laws of Hawaii 1991, is amended by amending section 1 to read as follows:

"SECTION 1. The purpose of this Act is to provide [low-interest loans to the residents and citizens of Hawaii who have suffered the loss of their homes and lands to the devastating effects of the continued volcanic eruptions on the island of Hawaii. Under current law, chapters 127, 171, and 209, Hawaii Revised Statutes, some of Kilauea lava flow victims do not qualify for existing disaster recovery loans. Some Kilauea lava flow residents and citizens do not have sufficient income to qualify for loan assistance to purchase replacement land and build a home. These residents and citizens may be in need of a one-time public relief program with specific requirements for the repayment of low-interest loans to assist in rebuilding their homes in an area of lesser volcanic risk.] funds for the development of infrastructure at Kikala-Keokea."

SECTION 3. Act 242, Session Laws of Hawaii 1991, is amended by amending section 2 to read as follows:

"SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,750,000, or so much thereof as may be necessary for fiscal year 1991-1992, to provide [low-interest land acquisition, home construction, and mortgage loans of up to $35,000 each to residents and citizens of Hawaii] funding for infrastructure development to benefit residents of Hawaiian ancestry who have been dispossessed of their homes and lands at Kalapana as a result of the continued volcanic eruptions on the island of Hawaii which began on January 3, 1983[; provided that the rate of interest on loans pursuant to this Act shall not exceed three per cent per annum and interest earnings on loans made pursuant to this Act may be used for administrative and other expenses necessary for administering the loan program. Guidelines shall be established by the housing finance and development corporation with respect to loan terms and loan qualification criteria. Moneys appropriated for the purposes of this Act shall be deposited into the housing finance revolving fund; provided that upon fulfillment of the purposes of this Act, all unencumbered moneys shall lapse into the state general fund]."

SECTION 4. Act 242, Session Laws of Hawaii 1991, is amended by amending section 3 to read as follows:

"SECTION 3. [The housing finance and development corporation shall administer the loans for the purposes of this Act, and shall adopt rules pursuant to chapter 91 to carry out the purposes of this Act.] There is created an infrastructure development fund to be administered by the department of land and natural resources. The funds appropriated for the purposes of this Act and all the moneys received or collected by the department of land and natural resources shall be deposited into the infrastructure development fund. The proceeds may be used for the necessary expenses in administering this Act; provided that upon fulfillment of the purposes of this Act, all unencumbered moneys shall lapse into the state general fund."

SECTION 5. Act 242, Session Laws of Hawaii 1991, is amended by amending section 4 to read as follows:

"SECTION 4. The sum appropriated shall be expended by the [housing finance and development corporation] department of land and natural resources for the purposes of this Act[.]; provided that all funding commitments to complete the design and construction of infrastructure improvements shall be executed before any moneys can be disbursed."

SECTION 6. Act 242, Session Laws of Hawaii 1991, appropriated funds to the housing finance revolving fund under the housing finance and development corporation, currently known as the housing and community development corporation of Hawaii. The director of finance shall transfer the unexpended balance, including encumbrances and accrued liabilities, of the funds appropriated to the housing finance revolving fund under Act 242, Session Laws of Hawaii 1991, as of the close of business on June 30, 2001, to the credit of the infrastructure development fund administered by the department of land and natural resources. Encumbered moneys shall continue to be encumbered until paid out or released from prior encumbrances.

SECTION 7. There is appropriated out of the infrastructure development fund the sum of $ , or so much thereof as may be necessary for fiscal year 2001-2001, to carry out the purposes of this Act. The sum appropriated shall be expended by the department of land and natural resources.

SECTION 8. Session law material to be repealed is bracketed and stricken. New session law material is underscored.

SECTION 9. This Act shall take effect on July 1, 2001.