SB2516

SECTION 1. The purpose of this Act is to bring about positive change for current and future generations of the State by making direct and strategic community investments in the areas set forth in section 5(f) of the Admission Act.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to title 13 to be appropriately designated and to read as follows:

"Chapter

STATE COMMISSION FOR COMMUNITY INVESTMENT

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Commission" means the state commission for community investment.

"Community investment" means actions that result in measurable progress and significant advancement in:

(1) Public schools;

(2) Public educational institutions;

(3) The betterment of the conditions of native Hawaiians, as defined by section 201 of the Hawaiian Homes Commission Act, 1920, as amended;

(4) The development of farm and home ownership on as widespread a basis as possible for the making of public improvements; and

(5) The provision of lands for public use.

"Executive director" means the executive director of the state commission for community investment.

"Grant" means an award of funds to a private organization, which may be a nonprofit organization, organized under the laws of the State, to carry out community investment activity.

§ -2 Establishment of commission. (a) There is created a state commission for community investment, which shall be placed within the department of business, economic development, and tourism for administrative purposes.

(b) The commission shall comprise seven members to be appointed and removed by the governor pursuant to section 26-34. The governor shall appoint:

(1) At least one member who resides in the county of Hawaii;

(2) At least one member who resides in the county of Kauai; and

(3) At least one member who resides in the county of Maui.

(d) The members of the commission shall serve without compensation, but shall be reimbursed for travel and other necessary expenses in the performance of their official duties.

(e) The commission shall appoint an executive director, who shall:

(1) Serve as the commission's chief executive officer;

(2) Be responsible for developing and administering the commission's programs under the commission's direction;

(3) Serve on a part-time or full-time basis;

(4) Have, by education or extensive experience, a working knowledge of public administration, planning, procurement, grant programs, and economics;

(5) Be familiar with state and county planning under chapter 226, including agency functional plans and county community and development plans;

(6) Be exempt from chapter 76; and

(7) Employ necessary additional staff pursuant to chapter 76, within available appropriations.

§ -3 Powers; generally. The commission:

(1) Shall assist in coordinating the plans, programs, and activities of individuals, associations, corporations, and agencies advancing community investment;

(2) Shall establish written standards and criteria by which grant contracts shall be evaluated;

(3) Shall appraise the availability, adequacy, and accessibility of community investment expertise and training to all persons throughout the State and devise programs to convey this knowledge to those who would otherwise not have the opportunity to participate;

(4) Shall stimulate, guide, and promote community investment throughout the State;

(5) Shall devise and recommend legislative and administrative action for the furtherance of community investment;

(6) Shall study the availability of private and governmental grants to promote the purposes of this chapter;

(7) Shall, through its executive director:

(A) Administer funds allocated by grant, gift, or bequest to the commission;

(B) Accept, hold, disburse, and allocate funds that may become available from other governmental and private sources; and

(C) Accept, hold, disburse, and allocate public funds that are made available to the commission by the legislature for disbursement or allocation, for the purposes of this chapter;

(8) Shall submit an annual report to the governor and legislature no later than twenty-one days prior to the convening of each regular session, which shall include:

(A) The total number and value of gifts, grants, and other moneys received;

(B) Payroll disbursements;

(D) Progress and accomplishments made,

during the preceding year;

(9) Shall conduct and support research, studies, and investigations relating to community investment;

(10) Shall cooperate with and assist county and state agencies in developing and implementing programs relating to community investment; and

(11) May make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter.

§ -4 Rules. The commission shall adopt rules pursuant to chapter 91 to effectuate the purposes of this chapter.

§ -5 State commission for community investment revolving fund. (a) There is created the state commission for community investment revolving fund into which all moneys received by the commission shall be deposited, including those moneys identified under section -6. Proceeds from the fund shall be used for the purposes of this chapter.

(b) Except as to administrative expenditures or as otherwise provided by law, expenditures from any revolving fund administered by the commission may be made by the commission without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37‑31 to 37-41 shall require the proceeds of any revolving fund administered by the authority to be reappropriated annually.

§ -6 Funding. For each fiscal year, two and one-half per cent of the net proceeds from the sale or other disposition from any lands held in the public land trust and the net income therefrom, shall be deposited into the state commission for community investment revolving fund."

SECTION 3. Section 171-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created in the department a special fund to be designated as the "special land and development fund". Subject to the Hawaiian Homes Commission Act of 1920, as amended, and section 5(f) of the Admission Act of 1959, all proceeds of sale of public lands, including interest on deferred payments; all moneys collected under section 171-58 for mineral and water rights; all rents from leases, licenses, and permits derived from public lands; all moneys collected from lessees of public lands within industrial parks; all fees, fines, and other administrative charges collected under this chapter and chapter 183C; a portion of the highway fuel tax collected under chapter 243; all moneys collected by the department for the commercial use of public trails and trail accesses under the jurisdiction of the department; transient accommodations tax revenues collected pursuant to section 237D-6.5(b)(5); and private contributions for the management, maintenance, and development of trails and accesses shall be set apart in the fund and shall be used only as authorized by the legislature for the following purposes:

(1) To reimburse the general fund of the State for advances made that are required to be reimbursed from the proceeds derived from sales, leases, licenses, or permits of public lands;

(2) For the planning, development, management, operations, or maintenance of all lands and improvements under the control and management of the board pursuant to title 12, including but not limited to permanent or temporary staff positions who may be appointed without regard to chapter 76; provided that transient accommodations tax revenues allocated to the fund shall be expended as provided in section 237D-6.5(b)(5);

(3) To repurchase any land, including improvements, in the exercise by the board of any right of repurchase specifically reserved in any patent, deed, lease, or other documents or as provided by law;

(4) For the payment of all appraisal fees; provided that all fees reimbursed to the board shall be deposited in the fund;

(5) For the payment of publication notices as required under this chapter; provided that all or a portion of the expenditures may be charged to the purchaser or lessee of public lands or any interest therein under rules adopted by the board;

(6) For the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department;

(7) For the payment to private land developers who have contracted with the board for development of public lands under section 171-60;

(8) For the payment of debt service on revenue bonds issued by the department, and the establishment of debt service and other reserves deemed necessary by the board;

(9) To reimburse the general fund for debt service on general obligation bonds issued to finance departmental projects, where the bonds are designated to be reimbursed from the special land and development fund;

(10) For the protection, planning, management, and regulation of water resources under chapter 174C; [~~and~~]

(11) For community investment by the state commission for community investment under chapter ; and

[~~(11)~~] (12) For other purposes of this chapter."

SECTION 4. There is appropriated out of the special land and development fund the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 to be deposited into the state commission for community investment revolving fund.

SECTION 5. There is appropriated out of the state commission for community investment revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 to support the activities of the state commission for community investment.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of 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 upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2516
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII