CONFERENCE COMMITTEE REP. NO.146
Honolulu, Hawaii
, 2005
RE: H.B. No. 1308
H.D. 1
S.D. 2
C.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1308, H.D. 1, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO LAND CONSERVATION,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this bill is to protect and conserve Hawaii's natural beauty and resources for current and future generations by establishing permanent adequate funding for land conservation by increasing the conveyance tax on a sliding scale and dedicating ten percent of the annual proceeds from the conveyance tax for land conservation.
Among other things, this measure:
(1) Establishes the Land Conservation Fund (Conservation Fund), section 173A-5, Hawaii Revised Statutes (HRS);
(2) Requires that ten percent of all conveyance taxes be deposited in or credited to the Conservation Fund annually;
(3) Exempts the Conservation Fund from the central service expenses assessment for special funds;
(4) Places the Conservation Fund under the administration and management of the Department of Land and Natural Resources (DLNR);
(5) Amends the definition of "land having value as a resource to the State" to include land with cultural value;
(6) Specifies that the acquisition of interests or rights in land having value as a resource to the State for the preservation of:
(A) Watershed protection;
(B) Coastal areas, beaches, and ocean access;
(C) Habitat protection;
(D) Cultural and historical sites;
(E) Recreational and public hunting areas;
(F) Parks;
(G) Natural areas;
(H) Agricultural production; or
(I) Open spaces and scenic resources,
constitutes a public purpose for which public funds may be expended or advanced;
(7) Directs that the Conservation Fund be used for:
(A) The acquisition of interests or rights in land having value as a resource to the State, whether in fee title or through the establishment of permanent conservation easements under chapter 198, HRS; and
(B) Annual administration costs for Conservation Fund, which must not exceed five percent of annual fund revenues of the previous year;
(8) Creating an application process whereby DLNR, with the approval of the Board of Land and Natural Resources (BLNR), grants moneys from the Conservation Fund to state or county agencies and nonprofit land conservation organizations;
(9) Provides for the manner in which lands acquired by grant moneys from the Conservation Fund may be sold, leased, or otherwise disposed of;
(10) Modifies the amount of the conveyance tax; and
(11) Specifies that with respect to the conveyance tax, ten percent must be allocated to the Conservation Fund;
Your Committee on Conference finds that a clear nexus exists between the source of the conveyance tax and providing funding for the preservation and conservation of valuable natural resources. A nexus also exists between the conveyance tax and the growing need for affordable housing. The conveyance tax is currently at the rate of 10 cents per $100 of the price of the property. Statistics indicate that 92% of the properties sold in 2004 would not have been affected by the new tax rate structure in this bill.
Upon careful consideration, your Committee on Conference has amended this bill by, among other things:
(1) Requiring BLNR to track amounts disbursed from the Conservation Fund, rather than to the Conservation Fund;
(2) Clarifying that state agencies, counties, and nonprofit land conservation organizations may acquire interests or rights in land having value as a resource to the State, whether in fee title or through the purchase of permanent conservation easements under Chapter 198, HRS;
(3) Specifying that any permanent conservation easement established through grants from the Conservation Fund that includes partnership with a federal land conservation program may be transferred only as provided by rules of the federal program;
(4) Adjusts the conveyance tax in the following manner:
(A) Except as provided in paragraph (B):
(i) Ten cents per $100 for properties with a value of less than $600,000;
(ii) Twenty cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; and
(iii) Thirty cents per $100 for properties with a value of $1,000,000 or greater;
and
(B) For the sale of a single-family residence or an individual unit in a multifamily dwelling for which the purchaser is ineligible for a county homeowner's exemption on property tax:
(i) Fifteen cents per $100 for properties with a value of less than $600,000;
(ii) Twenty-five cents per $100 for properties with a value of at least $600,000, but less than $1,000,000; and
(iii) Thirty-five cents per $100 for properties with a value of $1,000,000 or greater;
(5) Increases the allocation of the conveyance tax to the Rental Housing Trust Fund from 25 percent to 30 percent;
(6) Appropriating $1,100,000 from the Conservation Fund for fiscal year 2005-2006 for the purchase of agriculture easements to protect farm and ranch lands throughout the state;
(7) Requiring the Director of Finance to transfer to the credit of the Conservation Fund on July 1, 2005, all unexpended or unencumbered balances remaining in the Fund for the Environment, which will be repealed on the same date; and
(8) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1308, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1308, H.D. 1, S.D. 2, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE SENATE |
ON THE PART OF THE HOUSE |
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____________________________ RUSSELL S. KOKUBUN, Chair |
____________________________ EZRA R. KANOHO, Co-Chair |
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____________________________ BRIAN T. TANIGUCHI, Co-Chair |
____________________________ JON RIKI KARAMATSU, Co-Chair |
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