Report Title:

Impact Fees

Description:

Authorizes impact fee imposition on capital improvements for state CIPs. Deletes offsets payable to a developer from factors considered in adopting impact fees. Authorizes the transfer of impact fees assessed for roads and highways to the State for highway projects reasonably benefiting a development.

 

THE SENATE

S.B. NO.

2397

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to impact fees.

 

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

SECTION 1. The purpose of this Act is to clarify county authority to assess impact fees and provide the authority to transfer funds to the State for state highway projects.

SECTION 2. Section 46-142, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Except for any ordinance governing impact fees enacted before July 1, 1993, impact fees may be imposed only for those types of public facility capital improvements specifically identified in a county comprehensive plan [or], a facility needs assessment study[.], or for state capital improvement projects. The plan or study shall specify the service standards for each type of facility subject to an impact fee; provided that the standards shall apply equally to existing and new public facilities."

SECTION 3. Section 46-143, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) An impact fee shall be substantially related to the needs arising from the development and shall not exceed a proportionate share of the costs incurred or to be incurred in accommodating the development. The following [seven] factors [shall] may be considered [in determining a proportionate share of public facility capital improvement costs:] when enacting or adopting impact fees:

(1) The level of public facility capital improvements required to appropriately serve a development, based on a needs assessment study that identifies:

(A) Deficiencies in existing public facilities;

(B) The means, other than impact fees, by which existing deficiencies will be eliminated within a reasonable period of time; and

(C) Additional demands anticipated to be placed on specified public facilities by a development;

(2) The availability of other funding for public facility capital improvements, including but not limited to user charges, taxes, bonds, intergovernmental transfers, and special taxation or assessments;

(3) The cost of existing public facility capital improvements;

(4) The methods by which existing public facility capital improvements were financed;

(5) The extent to which a developer required to pay impact fees has contributed in the previous five years to the cost of existing public facility capital improvements and received no reasonable benefit therefrom, and any credits that may be due to a development because of [such] the contributions;

(6) The extent to which a developer required to pay impact fees over the next twenty years may reasonably be anticipated to contribute to the cost of existing public facility capital improvements through user fees, debt service payments, or other payments, and any credits that may accrue to a development because of future payments; and

(7) The extent to which a developer is required to pay impact fees as a condition precedent to the development of non-site related public facility capital improvements[, and any offsets payable to a developer because of this provision]."

SECTION 4. Section 46-144, Hawaii Revised Statutes, is amended to read as follows:

"§46-144 Collection and expenditure of impact fees. Collection and expenditure of impact fees assessed, imposed, levied, and collected for development shall be reasonably related to the benefits accruing to the development. To determine whether the fees are reasonably related, the impact fee ordinance or board rule shall provide that:

(1) Upon collection, the fees shall be deposited in a special trust fund or interest-bearing account. The portion that constitutes recoupment may be transferred to any appropriate fund;

(2) Collection and expenditure shall be localized to provide a reasonable benefit to the development. A county or board shall establish geographically limited benefit zones for this purpose; provided that zones shall not be required if a reasonable benefit can be otherwise derived. Benefit zones shall be appropriate to the particular public facility and the county or board. A county or board shall explain in writing and disclose at a public hearing reasons for establishing or not establishing benefit zones;

(3) Except for recoupment, impact fees shall not be collected from a developer [until approval of a needs assessment study that sets out planned expenditures bearing] unless:

(A) The types of public facility capital improvements are specifically identified in a county comprehensive plan, an approved facility needs assessment study, or for approved state capital improvement projects; and

(B) The planned expenditures bear a substantial relationship to the needs or anticipated needs created by the development;

(4) Impact fees shall be expended for public facilities of the type for which they are collected and of reasonable benefit to the development; [and]

(5) Impact fees assessed for roads and highways may be transferred to the State for state highway projects that would reasonably benefit the development; and

[(5)] (6) Within six years of the date of collection, the impact fees shall be expended or encumbered for the construction of public facility capital improvements that are consistent with the needs assessment study and of reasonable benefit to the development."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval, provided that section 3 shall take effect retroactive to October 1, 2002.

INTRODUCED BY:

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