HB2812

SECTION 1. The legislature finds that the undergrounding of overhead utilities can help to protect our electricity and communications infrastructure by developing systems that have endurance and hardening resistance to overcome vulnerabilities to potential acts of terrorism and natural disasters, such as hurricanes and tsunami. Further, the legislature also finds that there is a general public preference for underground utilities since undergrounding improves the visual quality of Hawaii's natural environment, improves road safety, increases property values, and enhances the visitor experience for tourism, Hawaii's major industry.

The legislature also finds that the high cost of converting to underground utilities has prevented many communities from receiving these benefits. Therefore, overhead utilities have been continually maintained and even reconstructed while adjacent public improvements are built. Underground conversion will take significant financial resources, the participation of many entities, and many years of coordinated effort to achieve. However, it is a necessary goal to enhance the public's safety and welfare.

Accordingly, the purpose of this Act is to:

(1) Establish and affirm a clearly stated policy that the conversion of overhead electric and communication facilities to underground facilities and the initial underground installation of these facilities is substantially beneficial to the public safety and welfare, is in the public interest, and is a public purpose;

(2) Establish an underground conversion fund for a sustained, coordinated conversion of overhead utilities; and

(3) Direct the public utilities commission to establish an underground conversion program.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . UNDERGROUND CONVERSION

§269-A Underground conversion fund. (a) There is established in the state treasury an underground conversion fund. The revenues to be deposited into the fund shall include:

(1) Five per cent of the state public utility fee;

(2) Federal and state appropriations and contributions by other public bodies;

(3) Voluntary conversion funds; and

(4) Round-up program funds.

(b) The underground conversion fund shall be administered by the public utilities commission for the purposes of this part.

§269-B Underground conversion program. (a) The commission shall establish an underground conversion program that allows for the systematic conversion of overhead utility lines to underground lines. In establishing the program, the commission shall:

(1) Administer the underground conversion fund to plan, design, and implement the conversion of overhead lines to underground lines;

(2) Accept revenues, compensations, proceeds, charges, penalties, grants, or any other payments in any form, from any public agency or from any other source for deposit into the underground conversion fund;

(3) Adopt guidelines and criteria for the expenditure of funds from the underground conversion fund;

(4) Expend funds from the underground conversion fund to plan, design, and implement the conversion of overhead distribution lines to underground lines;

(5) Authorize the issuance of loans pursuant to section 269-C;

(6) Establish a systematic prioritization of improvement areas for the conversion of overhead distribution lines to underground lines;

(7) Publish and distribute information and conduct educational programs in furtherance of this part;

(8) Issue binding interpretations or declaratory rulings and conduct contested case proceedings pursuant to chapter 91;

(9) Subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic and electronic communications;

(10) Recommend to the legislature additional statutory amendments to effectuate the purposes of this part;

(11) Adopt, amend, or repeal rules pursuant to chapter 91 as it may deem necessary to effectuate this part;

(12) Establish a policy to maximize the use of federal highways funds for undergrounding of utility facilities during the construction or reconstruction of any new or existing federal aid highway project;

(13) Maximize coordination and the establishment of funding sources with other federal, state, and county agencies to ensure the development of a hardened infrastructure designed with the endurance to withstand potential acts of terrorism and natural disasters, such as hurricanes and tsunami;

(14) Develop a comprehensive statewide plan for the long-term incremental undergrounding of utility lines; and

(15) Enforce this part and its rules.

(b) Additionally, the commission shall:

(1) Review the policies and laws of other jurisdictions that address the incremental undergrounding of utilities, as studied by the legislative reference bureau in 1999;

(2) Review community priorities and financing options studied in "Oahu Utilities Under-grounding and Visual Mitigation Studies" by the American Institute of Architects Honolulu Chapter in 2003;

(3) Review the current work-share program of the Hawaiian Electric Company, Inc., for undergrounding distribution utilities based on cost sharing with participating communities;

(4) Clarify the relationship between the public utilities commission and above ground infrastructure wiring regulated by other governmental bodies;

(5) Balance undergrounding conversion cost with the environmental and aesthetic concerns of consumers;

(6) Envision a plan that is driven by the availability of financing from the underground conversion fund rather than a fixed firm date for converting all utilities;

(7) Determine priorities for specific incremental undergrounding projects or grants;

(8) Make provisions to facilitate private funding of underground utilities in locations that will have a lower priority for conversion funds;

(9) Authorize each county to establish underground conversion zones by ordinance; and

(10) Adopt criteria for allocating funds to each county for its underground conversion zones.

(c) The commission shall adopt rules pursuant to chapter 91 for the implementation of and to establish standards for the underground conversion program.

§269-C Long-term loans. The commission shall have the authority to make long-term loans from the underground conversion fund or any other authorized source to private property owners in communities that are low on the priority list for underground conversion grants.

§269-D Round-up program. The commission shall allow any public utility to administer a round-up program, under which the utilities may collect voluntary contributions for the underground conversion fund from ratepayers who choose to contribute the difference between their actual utility bill and their bill payment, which is rounded up to the nearest dollar. The utilities shall deposit into the utilities underground conversion fund, on a monthly basis, the difference between the actual bill and the rounded amount. Any moneys collected by a utility from the round-up program shall be excluded in determining the utility's annual gross revenue."

SECTION 3. Section 226-14, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) To achieve the general facility systems objective, it shall be the policy of this State to:

(1) Accommodate the needs of Hawaii's people through coordination of facility systems and capital improvement priorities in consonance with state and county plans[.];

(2) Encourage flexibility in the design and development of facility systems to promote prudent use of resources and accommodate changing public demands and priorities[.];

(3) Ensure that required facility systems can be supported within resource capacities and at reasonable cost to the user[.];

(4) Pursue alternative methods of financing programs and projects and cost-saving techniques in the planning, construction, and maintenance of facility systems[.]; and

(5) Convert existing overhead distribution utility lines in the public domain to underground utilities and encourage counties to do the same."

SECTION 4. Section 235-102.5, Hawaii Revised Statutes, is amended to read as follows:

"§235-102.5 Income check-off authorized. (a) Any individual whose state income tax liability for any taxable year is $2 or more may designate $2 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax liability of $4 or more, each spouse may designate that $2 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included which clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made whether by an original or amended return may not be revoked.

(b) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be deposited into the school-level minor repairs and maintenance special fund established by section 302A-1504.5, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the special fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(c) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be paid over to the libraries special fund established by section 312-3.6, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(d) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over as follows:

(1) One-third to the Hawaii children's trust fund under section 350B-2; and

(2) Two-thirds to be divided equally among:

(A) The domestic violence and sexual assault special fund under the department of health in section 321-1.3;

(B) The spouse and child abuse special account under the department of human services in section 346‑7.5; and

When designated by a taxpayer submitting a state income tax return to the department, the department of budget and finance shall allocate the moneys among the several funds as provided in this subsection. In the case of a joint return of a husband and wife having a state income tax refund of $10 or more, each spouse may designate that $5 be paid over as provided in this subsection. The director of taxation shall revise the individual state income tax form to allow the designation of contributions pursuant to this subsection on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(e) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be deposited into the underground conversion fund established by section 269-A, when submitting a state income tax return to the department. In the case of a joint return of a husband and wife having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for such taxable year. A designation once made, whether by an original or amended return, may not be revoked."

SECTION 5. The public utilities commission shall submit an interim report of its findings and recommendations on the development of a comprehensive statewide plan for the long-term incremental undergrounding of utility lines, including proposed legislation, if any, to the legislature and the governor no later than twenty days prior to the convening of the regular session of 2009. The public utilities commission shall submit a final report on its findings and recommendations on the development of a comprehensive statewide plan for the long-term incremental undergrounding of utility lines, including proposed legislation, if any, to the legislature and governor no later than twenty days prior to the convening of the regular session of 2010.

SECTION 6. In codifying the new sections added by section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2812
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII