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H.B.
NO. |
1829 |
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THIRTY-FIRST LEGISLATURE, 2022 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION
1. The legislature finds that the Internal
Revenue Code of 1986 provides a formula for the allocation of the State's annual
ceiling among governmental units authorized to issue private activity bonds. The legislature further finds that title 26 United
States Code section 146(e) also allows a state to establish a different formula
for allocating the state ceiling among its governmental units by state law. That authority was exercised in the enactment of
Act 62, Session Laws of Hawaii 1987, which established a different ceiling allocation
for the counties to provide more flexibility and to better serve the needs of the
counties and other issuers of private activity bonds within the State.
The purpose of this Act is to, for a period of six years:
(1) Specify that the entire allocation of the state bond ceiling shall be allocated to the Hawaii housing finance and development corporation to be used for housing related projects;
(2) Require the Hawaii housing finance and development corporation, in consultation with the respective counties, to allocate specified percentage amounts for housing related projects in each county;
(3) Authorize the Hawaii housing finance and development corporation to accumulate each county's annual allocation before assigning the allocation for housing related projects, pursuant to the discretion of the corporation's board of directors;
(4) Authorize the Hawaii housing finance and development corporation, with the approval of the governor, to assign and reassign the corporation's allocation to the counties;
(5) Remove the authorization for the department of budget and finance to request return of all or any part of the allocations of any of the counties and to assign and reassign the allocation to other counties or issuers;
(6) Remove the authorization for counties or issuers to request additional allocations of the state bond ceiling; and
(7) Change the dates for reverted or remaining allocations and require certain reverted or remaining allocations to be used for housing related projects.
SECTION 2. Section 39B-2, Hawaii Revised Statutes, is amended to read as follows:
"§39B-2 Allocation of annual state ceiling.
(a) [The] One hundred per
cent of the annual state ceiling shall be allocated for each calendar year [in
the following proportions:
(1) An
amount equal to fifty per cent of the annual state ceiling] to the [State;]
Hawaii housing finance and development corporation
to be used for housing related projects. The Hawaii housing finance and development corporation,
in consultation with the respective county, shall allocate:
[(2)] (1)
An amount equal to 37.55 per cent of the
annual state ceiling [to] for housing related projects
in the city and county of Honolulu;
[(3)] (2)
An amount equal to 5.03 per cent of the
annual state ceiling [to] for housing related projects in the
county of Hawaii;
[(4)] (3)
An amount equal to 2.41 per cent of the
annual state ceiling [to] for housing related projects in the
county of Kauai; and
[(5)] (4) An amount equal to 5.01 per cent of the annual
state ceiling [to] for housing related projects in the county of
Maui[.];
provided that the Hawaii housing finance
and development corporation may accumulate each county's respective annual allocation
as provided under this subsection before assigning the allocation for projects in
each county. Any unallocated amounts under
this subsection shall be allocated at the discretion of the board of directors of
the Hawaii housing finance and development corporation.
(b) The [department,] Hawaii housing finance
and development corporation, with the approval of the governor, may assign
all or any part of the allocation of the [State] Hawaii housing finance
and development corporation to [any issuer or] any county for [a
specific calendar year or years.] housing related projects. At the request of the [department,] Hawaii
housing finance and development corporation, any [issuer or] county
to which any part of the [State's] allocation has been assigned under
this subsection shall return all or part of the assignment, in which case
the [department] Hawaii housing finance and development corporation
may provide for its reassignment.
[(c) The department may request return of all or
any part of the allocations of one or more counties made pursuant to subsection
(a), and may assign and reassign the allocation to any other county or issuer
for a specified calendar year or years.
(d)
A county, by resolution of its governing
body, or any issuer, by written certificate of such issuer, may request additional
allocations of the annual state ceiling from, or assign all or any part of its
portion of the allocation of the annual state ceiling to, the State for a specified
calendar year or years.]"
SECTION 3. Section 39B-4, Hawaii Revised Statutes, is amended to read as follows:
"[[]§39B-4[]] Report of unused allocation; reversion to
State.
The director of finance of each county shall report to the [department]
Hawaii housing finance and development corporation in writing by [December 15]
September 30 of each year as to the amount of allocation to such
county [which] that has not been applied to private activity bonds
in such year or assigned pursuant to this chapter.
In
preparing [such] the report, the director of finance of the
county shall deduct any allocation [which] that is unused or
unassigned as of [December 15] September 30 but will be
applied to private activity bonds on or prior to [December 31] November 1
of such year.
Unless
the director of finance of the county or any issuer, by written certificate,
indicates to the [department] Hawaii housing finance and development corporation
prior to [December 15] September 30 of each year that
it intends to carry forward all or any portion of its allocation [which]
that has not been applied to private activity bonds in such year or assigned
pursuant to this chapter, such unused or unassigned allocation shall revert to
the State on [December 31] November 1 and the State
shall be entitled to carry forward such unused or unassigned allocation as
permitted by federal law."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2022; provided that:
(2) On December 31, 2028, this Act shall be repealed and sections 39B-2 and 39B-4, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act.
Report Title:
State Bonds; Annual Ceiling; Private Activity Bonds; HHFDC; Housing Related Projects; Counties
Description:
Specifies that the entire allocation of the state bond ceiling shall be allocated to the HHFDC to be used for housing related projects. Requires the HHFDC, in consultation with the respective counties, to allocate specified percentage amounts for housing related projects in each county. Authorizes the HHFDC to accumulate each county's annual allocation before assigning the allocation for housing related projects, pursuant to the discretion of the HHFDC board of directors. Authorizes the HHFCD, with the approval of the governor, to assign and reassign the HHFDC's allocation to the counties. Removes the authorization for the department of budget and finance to request return of all or any part of the allocations of any of the counties and to assign and reassign the allocation to other counties or issuers. Removes the authorization for counties or issuers to request additional allocations of the state bond ceiling. Changes the dates for reverted or remaining allocations and require certain reverted or remaining allocations to be used for housing related projects. Sunsets 12/31/2028. (HD1)
The
summary description of legislation appearing on this page is for informational
purposes only and is not legislation or evidence of legislative intent.