Establishes impact fees for roads, community health centers and hospitals, and public school improvements.

A BILL FOR AN ACT

SECTION 1. Infrastructure is needed to support centers of economic development to sustain growth, support education in areas where larger numbers of people live, and to support healthcare expansion for growing populations. New developments benefit from past contributions to infrastructure paid by local citizens in the form of taxes; therefore, it is reasonable that new developers or new residents contribute to infrastructure costs in the form of an impact fee.

Furthermore, the populations of some of Hawaii's urban centers have been growing tremendously, putting great pressure on the infrastructure of these high-growth areas. For example, Kailua-Kona's population is doubling every eight years and is presently the second largest urban center in Hawaii, yet in spite of very significant development, it has not received adequate funding for completion of critical mauka-makai road connectors, widening of Queen Ka'ahumahu Highway, or extra funds to resolve the dispute over Alii highway. Moreover, there is a critical shortage of healthcare services in Kailua-Kona and funding to recruit physicians and sustain local community health centers is needed.

The purpose of this Act is to mandate that all developments contribute one per cent of the cost of the development in excess of $300,000, including the value of the land, to the local community for the expansion and upkeep of local infrastructure needs which shall be distributed as follows:

(1) One third for roads;

SECTION 2. The Hawaii Revised Statutes is amended by adding two new sections to be appropriately designated and to read as follows:

"§ - Impact fees. (a) In addition to any other required impact fees, an impact fee of one per cent shall be charged and assessed on the cost in excess of $300,000 of all new land development activities that require a building permit.

(b) One-third of the impact fees collected shall be used for roads, one-third for the expansion of local community health centers and hospitals, and one-third for local public school improvements.

(c) For the purposes of this section:

§ - Tax revenue; infrastructure fund. (a) There is established in the state treasury an infrastructure revolving fund, to be administered by the department of accounting and general services, into which shall be deposited:

(b) Moneys in the revolving fund shall be used solely to provide for infrastructure needs within twenty miles of the tax base or business from which any tax in the fund was collected."

SECTION 3. There is appropriated out of the infrastructure revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2005-2006 for the purposes of this Act.

The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval, and shall apply to taxable years beginning after December 31, 2006.