HOUSE OF REPRESENTATIVES

H.B. NO.

1163

THIRTY-SECOND LEGISLATURE, 2023

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII HISTORIC PRESERVATION SPECIAL FUND.

 

 

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

 

     SECTION 1.  The legislature finds that it is in the public interest to maintain and preserve the State's historic government buildings.  When Hawaii became the fiftieth state, key elements of its multicultural heritage and culture were incorporated into its government structures.  These buildings reflect Hawaii's Pacific-Asian values, making these structures unique within the United States and the world.  At the same time, older structures like Iolani Palace and other historic government buildings provide critical links to Hawaii's monarchy and Native Hawaiian population.  In order to restore and preserve the state capitol, Iolani Palace, and other historic government properties, the State should adhere to the same long‑term planning, budgeting, and preservation standards that are used to preserve privately held historic sites.

     The legislature further finds that assistance should also be provided to owners of certified historic structures that are privately owned who do not qualify for the historic preservation income tax credit pursuant to section 235-110.97, Hawaii Revised Statutes.

     Accordingly, the purpose of this Act is to develop a holistic approach toward the restoration and preservation of the State's historic properties by:

     (1)  Expressly allowing the Hawaii historic preservation special fund to be used for this purpose; and

     (2)  Establishing a grant program to assist owners of certified historic structures that are privately owned who do not qualify for an income tax credit under section 235-110.97, Hawaii Revised Statutes.

     SECTION 2.  Chapter 6E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§6E-     Grant program; privately owned historic properties.  (a)  There is established in the department a grant program to assist owners of certified historic structures that are privately owned who do not qualify for the historic preservation income tax credit pursuant to section 235-110.97.

(b)  The program shall provide grants to qualified applicants under the following terms and conditions:

     (1)  Grants shall be given to applicants who undertake substantial rehabilitation of a certified historic structure that is privately owned;

     (2)  No grants shall be given unless money has been spent by the applicant toward substantial rehabilitation of a certified historic structure that is privately owned; and

     (3)  The total amount of a grant to any one applicant shall not exceed $          .

(c)  The following standards shall apply to all grants provided under the program:

     (1)  Any grant shall be used exclusively for the purposes of the program;

     (2)  The grantee shall comply with all applicable federal, state, and county laws;

     (3)  The grant shall not be used for purposes of entertainment or perquisites;

     (4)  All activities undertaken with grant funds received shall comply with all applicable federal, state, and county statutes and ordinances;

     (5)  The grantee shall:

          (A)  Indemnify and hold harmless the State of Hawaii and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds received from the program; and

          (B)  Obtain sufficient insurance to provide the indemnification under subparagraph (A), if requested to do so by the department; and

     (6)  The grantee shall agree to make available to the department all records the grantee may have relating to the grant to monitor the grantee's compliance with the requirements of the program.

(d)  The department shall adopt rules to implement the grant program.  The grant applications shall be reviewed and approved by an administrative staff member of the department."

     SECTION 3.  Section 6E-16, Hawaii Revised Statutes, is amended to read as follows:

     "§6E-16  Hawaii historic preservation special fund.  (a)  There is established a Hawaii historic preservation special fund into which shall be deposited the following moneys:

     (1)  Appropriations by the legislature to the special fund[;], in an amount equal to one per cent of all state fund appropriations for capital improvements designated for the construction cost element; provided that this transfer shall apply only to capital improvement appropriations that are designated for the construction or renovation of state buildings; provided further that the one per cent transfer requirement shall not apply to appropriations from the passenger facility charge special fund established by section 261-5.5 and the rental motor vehicle customer facility charge special fund established under section 261-5.6;

     (2)  Gifts, donations, historic preservation funding from non-state sources, and grants from public agencies and private persons;

     (3)  All proceeds collected by the department derived from historic preserve user fees, historic preserve leases or concession fees, fees charged to carry out the purposes of this chapter, or the sale of goods; and

     (4)  Civil, criminal, and administrative penalties, fines, and other charges collected under this chapter or any rule adopted pursuant to this chapter.

All interest earned or accrued on moneys deposited in the fund shall become part of the fund.

     (b)  The fund shall be administered by the department; provided that the department may contract with a public or private agency to provide the day-to-day management of the fund.

     [(b)] (c)  Subject to legislative authorization, the department may expend moneys from the fund:

     (1)  For permanent and temporary staff positions;

     (2)  To replenish goods;

     (3)  To produce public information materials;

     (4)  To provide financial assistance to public agencies and private agencies in accordance with chapter 42F involved in historic preservation activities other than those covered by section 6E-9; [and]

     (5)  To cover administrative and operational costs of the historic preservation program[.]; and

     (6)  To repair, maintain, and preserve historic properties, as defined in this chapter, except properties maintained through a separate, dedicated funding source.

     (d)  The department shall submit a report to the legislature no later than twenty days prior to the convening of each regular session detailing the moneys deposited into and expended from the fund.

     [(c)] (e)  The department shall adopt rules in accordance with chapter 91 for the purposes of this section."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on June 30, 3000.

 

 

 

Report Title:

Department of Land and Natural Resources; Hawaii Historic Preservation Special Fund; Historic Property; Grant Program

 

Description:

Clarifies that the Hawaii historic preservation special fund may be used to repair and maintain historic properties, except properties maintained through a separate, dedicated funding source.  Establishes a grant program to assist owners of certified historic structures that are privately owned who do not qualify for the historic preservation income tax credit pursuant to section 235-110.97, HRS.  Effective 6/30/3000.  (HD1)

 

 

 

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