HB960

SECTION 1. Chapter 200, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:

"§200-A Designation of small boat harbor improvement project. (a) The board may designate a small boat harbor improvement project if it determines that there is need for replanning, renewal, or redevelopment of the facilities and infrastructure of the small boat harbor to be designated.

(b) The board shall develop an improvement project plan. The plan shall include but not be limited to:

(1) Harbor development guidance policies;

(2) Harbor improvement program; and

(3) Harbor improvement rules.

Cooperative agreements may be entered into between the board and qualified persons or public agencies, where the powers, services, and capabilities of such persons or agencies are deemed necessary and appropriate by the board for the development of the small boat harbor improvement project plan.

(c) The board may provide for a Hawaii nonprofit association, established pursuant to chapter 414D, to provide management of the improvement project, and to carry out activities that the board may prescribe.

(d) Whenever practical, planning activities of the board shall be coordinated with federal, state, and county laws and ordinances. Consideration shall be given to:

(1) State goals and policies;

(2) Adopted state plans or land use guidance policies;

(3) County general plans;

(4) Development plans; and

(5) Ordinances.

(e) The board shall hold public hearings on any proposed small boat harbor improvement project plan pursuant to chapter 91 and, after consideration of comments received and appropriate revisions to the plan made, shall submit the improvement project plan to the governor for the governor's approval.

After approval, the governor shall submit to the legislature requests for appropriations or authorization to issue bonds, or both, to implement the improvement project plan in an orderly, affordable, and feasible manner. The governor shall submit the requests to the legislature as part of the executive budget or supplemental budget, as appropriate.

(f) The board may amend the improvement project plan as may be necessary. Amendments shall be made in accordance with chapter 91.

§200-B Small boat harbor improvement project facilities and infrastructure. (a) The cost of providing the facilities and infrastructure in an improvement project plan shall be assessed against the permittees who are owners of vessels moored in the designated small boat harbor directly benefiting from the improvements to the facilities and infrastructure. The board:

(1) Shall determine the areas of the small boat harbor that will benefit from the public facilities and infrastructure improvements to be undertaken and, if less than the entire small boat harbor benefits, the board may establish assessment areas within the small boat harbor;

(2) May issue and sell bonds in such amounts as may be authorized by the legislature to provide funds to finance such improvements; and

(3) Shall fix the assessments against permittees specially benefited.

All assessments made pursuant to this section shall be a statutory lien against each permitee assessed from the date of the notice declaring the assessment until paid and such lien shall have priority over all other liens.

(b) Bonds issued to provide funds to finance facilities and infrastructure shall be secured by the permits benefited or improved, the assessments thereon, or by the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the board.

Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued according and subject to the provisions of the rules adopted pursuant to this section.

(c) Notwithstanding any other law to the contrary, in assessing permittees for the facilities and infrastructure improvements, the board shall assess the permittee within the small boat harbor according to the special benefits conferred upon the permittee by the facilities or infrastructure. These methods may include assessment on vessel length or any other assessment method which assesses the permittee according to the special benefit conferred, or any combination thereof.

(d) All moneys collected on account of assessments and interest thereon for any facilities or infrastructure financed by the issuance of bonds shall be set apart in the small boat harbor improvement special fund, established pursuant to section 200-C, and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized for the issuance of the bonds. If any surplus remains in the small boat harbor improvement special fund after the payment of the bonds chargeable against such fund, the surplus amount shall be deposited into the boating special fund established pursuant to section 248-8.

(e) Notwithstanding any law to the contrary, whenever, as part of a small boat harbor improvement project plan, it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the board shall establish by rule pursuant to chapter 91, the allocation of cost between the board, the affected public utilities, and permittees that may directly benefit from such improvement.

§200-C Small boat harbor improvement special fund. (a) There is established within the state treasury a special fund to be known as the small boat harbor improvement special fund to be administered and expended by the board.

(b) The moneys in the special fund shall be used by the board for the payment of the principal and interest on bonds issued by the board to fund the administering, operating, and maintaining of small boat harbor improvement projects, the establishment of reserves, and other purposes as may be authorized for the issuance of the bonds.

(c) Fees remitted pursuant to section 200-B, legislative appropriations and grants, donations, and contributions from private or public sources for the purposes of the fund, shall be deposited into the special fund.

(d) The board shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session that outlines the receipts of, and expenditures from, the special fund."

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:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

(7) Housing loan program revenue bond special fund;

(8) Housing project bond special fund;

(9) Aloha Tower fund created by section 206J-17;

(10) Funds of the employees' retirement system created by section 88-109;

(11) Unemployment compensation fund established under section 383-121;

(12) Hawaii hurricane relief fund established under chapter 431P;

(13) Hawaii health systems corporation special funds;

(14) Tourism special fund established under section 201B‑11;

(15) Universal service fund established under chapter 269;

(16) Integrated tax information management systems special fund under section 231-3.2;

(17) Emergency and budget reserve fund under section 328L‑3;

(18) Public schools special fees and charges fund under section 302A-1130(f);

(19) Sport fish special fund under section 187A-9.5;

(20) Neurotrauma special fund under section 321H-4;

(21) Deposit beverage container deposit special fund under section 342G-104;

(22) Glass advance disposal fee special fund established by section 342G-82;

(23) Center for nursing special fund under section [[]304A-2163[]];

(24) Passenger facility charge special fund established by section 261-5.5;

(25) Solicitation of funds for charitable purposes special fund established by section 467B-15;

(26) Land conservation fund established by section 173A-5;

(27) Court interpreting services revolving fund under section 607-1.5;

(28) Trauma system special fund under section 321-22.5;

(29) Hawaii cancer research special fund;

(30) Community health centers special fund; [~~and~~]

(31) Emergency medical services special fund[[]; and

(32) Small boat harbor improvement special fund;

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 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D-1;

(2) Special out-of-school time instructional program fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Funds of the employees' retirement system created by section 88-109;

(9) Unemployment compensation fund established under section 383-121;

(10) Hawaii hurricane relief fund established under chapter 431P;

(11) Convention center enterprise special fund established under section 201B-8;

(12) Hawaii health systems corporation special funds;

(13) Tourism special fund established under section 201B‑11;

(14) Universal service fund established under chapter 269;

(15) Integrated tax information management systems special fund under section 231-3.2;

(16) Emergency and budget reserve fund under section 328L‑3;

(17) Public schools special fees and charges fund under section 302A-1130(f);

(18) Sport fish special fund under section 187A-9.5;

(19) Neurotrauma special fund under section 321H-4;

(20) Center for nursing special fund under section [[]304A-2163[]];

(21) Passenger facility charge special fund established by section 261-5.5;

(22) Court interpreting services revolving fund under section 607-1.5;

(23) Trauma system special fund under section 321-22.5;

(24) Hawaii cancer research special fund;

(25) Community health centers special fund; [~~and~~]

(26) Emergency medical services special fund[[]; and

(27) Small boat harbor improvement special fund;

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned.[]]"

SECTION 4. There is appropriated out of the small boat harbor improvement special fund the sum of $ or so much thereof as may be necessary for fiscal year 2007-2008 for the payment of the principal and interest on bonds issued by the board to fund, the administering, operating, and maintaining of small boat harbor improvement projects.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 5. In codifying the new sections added by section 1 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 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	960
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII