Requires 25 percent of real estate conveyance tax revenues to be deposited annually into the Land Conservation Fund. Allows grants to state agencies, counties, and nonprofit land conservation organizations to acquire interest in lands having value as state resources. Exempts the Land Conservation Fund from the 5 percent fee collected for government central service expenses relating to all special funds. (HB1308 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that the preservation, protection, and enhancement of the State's land, coastal areas, and natural character are of central importance for current and future residents and for the state economy. The legislature further finds that adequate funding to conserve land for watershed protection, coastal preservation, flood prevention, parks, habitat protection, cultural preservation, agricultural production, and open space and scenic resources is necessary to ensure protection of these lands and resources for future generations.

The legislature has already determined that the conveyance tax is an appropriate means to fund the conservation of natural resources by dedicating a portion of the current assessment to the natural area partnership program and forest stewardship program that assist private landowners in managing important natural resources.

The legislature has also determined that there is a clear nexus between the source of the conveyance tax and providing funding for watershed protection and other natural resource preservation programs. The development, sale, and improvement of real estate in Hawaii adds additional pressure on natural areas, coastal access, agricultural production, and Hawaii's water resources and watershed recharge areas.

The purpose of this Act is to establish permanent adequate funding for land conservation by dedicating twenty-five per cent of the annual proceeds from the real estate conveyance tax to the existing land acquisition fund established by Act 77, Session Laws of Hawaii 1973, as codified in section 173A-5, Hawaii Revised Statutes. This Act shall be known as "The Legacy Land Act".

SECTION 2. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

"§36-27 Transfers from special funds for central service expenses. Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 3. Section 173A-2, Hawaii Revised Statutes, is amended by amending the definition of "land having value as a resource to the State" to read as follows:

""Land having value as a resource to the State" includes land having natural, environmental, recreational, scenic, cultural, or historic value, and may also include park and trail systems [which] that provide access to any such land."

SECTION 4. Section 173A-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§173A-5[]] [Fund for the environment.] Land conservation fund. (a) [A fund for the environment,] A land conservation fund, hereinafter called "fund", is hereby established.

(b) The proceeds from the sale of any general obligation bonds, authorized and issued for purposes of this chapter, shall be deposited in or credited to the fund.

(c) Any net proceeds or revenue from the operation, management, sale, lease, or other disposition of land or the improvements on such land, acquired or constructed by the board under the provisions of this chapter, shall also be deposited in or credited to the fund.

(d) In addition to the foregoing, twenty-five per cent of all taxes imposed and collected by section 247-1 shall also be deposited in or credited to the fund every year.

(e) The fund shall be administered and managed by the department.

(f) The acquisition of interests or rights in land having value as a resource to the State for the preservation of:

(g) The fund shall be used for:

(h) Based on applications from state agencies, counties, and nonprofit land conservation organizations, the department shall recommend to the board specific parcels of land to be acquired, restricted with conservation easements, or preserved in similar fashion. The board shall review the selections and approve or reject the selections according to the availability of moneys in the fund. To be eligible for grants from the fund, state and county agencies and nonprofit land conservation organizations shall submit applications to the department that contain:

(i) For applications approved by the board, the board may acquire land having value as a resource to the State, pursuant to section 173A-4, or the board may award grants from the fund to the qualifying state or county agencies or nonprofit land conservation organizations for the preservation of the real property. Where the recipient of a grant is a county agency or nonprofit land conservation organization, the board shall require additional matching funds of at least twenty-five per cent of the total project costs. Matching funds may be in the form of:

SECTION 5. Section 173A-9, Hawaii Revised Statutes, is amended to read as follows:

"[[]§173A-9[]] Grants to state agencies, counties[.], and nonprofit land conservation organizations. Subject to the approval of the governor, the board may make grants to state agencies, counties, and nonprofit land conservation organizations from available funds for the purchase or acquisition [by eminent domain] of land having value as a resource to the State and approved for purchase or acquisition by the board. Any land so acquired by any state agency or county may[, subject to chapter 171,] be sold, leased, or otherwise disposed of, subject to chapter 171, with the prior written approval of the board. Any land acquired by any nonprofit land conservation organization may be sold, leased, or otherwise disposed of with the prior written approval of the board."

SECTION 6. Section l73A-10, Hawaii Revised Statutes, is amended to read as follows:

SECTION 7. Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

"§247-7 Disposition of taxes. All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year, twenty-five per cent shall be paid into the land conservation fund established pursuant to section 173A-5, twenty-five per cent shall be paid into the rental housing trust fund established by section 201G-432, and twenty-five per cent shall be paid into the natural area reserve fund established by section 195-9; provided that the funds paid into the natural area reserve fund shall be annually disbursed by the department of land and natural resources after joint consultation with the forest stewardship committee and the natural area reserves system commission in the following priority:

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2010.