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THE SENATE |
S.B. NO. |
1326 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The purpose of this Act is to streamline transit-oriented development infrastructure improvements by making chapter 206E, part X, Hawaii Revised Statutes, a program under the Hawaii community development authority and making additional consistent revisions to chapter 206E, Hawaii Revised Statutes.
SECTION 2. Section 206E-1, Hawaii Revised Statutes, is amended to read as follows:
"§206E-1 Findings and purpose. The legislature finds that many areas of the State
are substantially undeveloped, blighted, or economically depressed, and are or are
potentially in need of renewal, renovation, or improvement to alleviate such conditions
as dilapidation, deterioration, age, and other such factors or conditions [which]
that make such areas an economic or social liability.
The
legislature further finds that there exists within the State vast, unmet community
development needs. These include, but are
not limited to, a lack of suitable affordable housing; insufficient commercial and
industrial facilities for rent; residential areas [which] that do
not have facilities necessary for basic liveability, such as parks and open space;
[and] areas [which] that are planned for extensive land allocation
to one, rather than mixed uses[.]; a lack of infrastructure necessary
to facilitate community development; and insufficient culturally appropriate agriculture,
education, and natural-resource restoration and management.
It
is further determined that the lack of planning and coordination in such areas has
given rise to these community development needs and that existing laws and public
and private mechanisms have either proven incapable or inadequate to facilitate
timely redevelopment and renewal[.], or restoration and management, as
the case may be.
The
legislature finds that a new and comprehensive authority for community development
must be created to join the strengths of private enterprise, public development,
and regulation into a new form capable of long-range planning and implementation
of improved community development. The purpose
of this chapter is to establish such a mechanism in the Hawaii community development
authority, which is a public entity [which] that shall determine community
development programs and projects and cooperate with private enterprise and
the various components of federal, state, and county governments in bringing plans
and projects to fruition. [For
such areas designated as community development districts, the] The legislature
believes that the planning and implementation [program] expertise
of the Hawaii community development authority will result in communities [which]
that serve the highest needs and aspirations of Hawaii's people.
The
legislature finds that the creation of the Hawaii community development authority,
the establishment of community development districts[, and] and program
areas, the issuance of bonds pursuant to this chapter to finance public facilities,
and the ability of the Hawaii community development authority to cooperate with
or assist public and private sector entities to engage in projects that improve
the State, serve the public interest and are matters of statewide concern."
SECTION 3. Chapter 206E, part X, Hawaii Revised Statutes, is amended to read as follows:
"[[]Part
X.[]] Transit-oriented
development infrastructure improvement [district] Program
[[]§206E-241[]] Findings and purpose. The legislature finds that construction, installation,
and improvement of certain infrastructure is necessary and desirable to facilitate
renewal and redevelopment of areas designated by the State and the counties for
transit-oriented development. Transit-oriented
development is a powerful tool that can ultimately deliver a wide range of social,
environmental, and economic benefits. Transit-oriented
development promotes development patterns that support quality of life, preserves
the natural environment, provides a range of housing choices for residents, and
encourages walking, biking, and use of mass transit. The State plays an important role in overcoming
barriers to transit‑oriented development, including encouraging needed investments
in improving regional infrastructure such as roads, sewers, water, power, communication,
and storm water management systems. This
part is intended to move transit-oriented development planning efforts forward into
infrastructure improvements that benefit the community. The legislature further finds that, currently,
no single state agency has the authority to improve infrastructure along a transit
corridor in the best interest of the State.
This part will enable the delivery of infrastructure needed to support development
on lands within designated transit-oriented development zones.
Accordingly,
[the purpose of this part is to establish] there is established the
transit-oriented development infrastructure improvement [districts] program
to be administered by the authority to foster community development by strategically
investing in infrastructure improvements.
[[]§206E-242[]] Definitions. As used in this part:
["Board"
means the transit-oriented development infrastructure improvement district board.
"District"
means the transit-oriented development infrastructure improvement district within
each county-designated transit-oriented development zone, or within a one-half mile
radius of a proposed or existing transit station if the county has not designated
transit-oriented development zones, as determined by the board.]
"Fund"
means the transit-oriented development infrastructure improvement [district]
program special fund established under section 206E-247.
"Program"
means the transit-oriented development infrastructure improvement [district]
program developed by the [board] authority pursuant to section 206E-246.
[[]§206E-243[] District established; boundaries.] Transit-oriented development infrastructure
improvement program areas; established. [(a) The transit-oriented development infrastructure
improvement district is hereby established under the authority.
(b)] The [district] transit-oriented development
infrastructure improvement program areas shall comprise the parcels of land
either within county-designated transit-oriented development zones, or within
a one-half mile radius of a proposed or existing transit station if the county has
not designated transit-oriented development zones, as determined by the [board,]
authority, which shall take into account proximity, walkability, adopted
county plans, and other relevant factors[; provided that in a county with
a population in excess of five hundred thousand, a transit-oriented development
zone shall include a rail station or a planned rail station]. The [district] program areas shall
include all parcels of land of which any portion of the parcels are located within
the county-designated transit-oriented development zones, or within a one-half mile
radius around proposed or existing transit stations if the county has not designated
transit-oriented development zones.
[[§206E-244] Transit-oriented development infrastructure improvement
district board; established; members; terms; vacancies. (a) There is established the transit-oriented development
infrastructure improvement district board, which shall be placed under the authority
within the department of business, economic development, and tourism for administrative
purposes. The board shall carry out the duties
and responsibilities as set forth in this part.
(b) The board shall consist of the following voting
members:
(1) The director of finance or the director's designee;
(2) The director of transportation or the director's
designee;
(3) The director of the office of planning and sustainable
development or the director's designee;
(4) The director of planning and permitting of the
county in which each district is located or the director's designee; and
(5) The following members, who shall be appointed
by the governor pursuant to section 26-34:
(A) A cultural specialist;
(B) An at-large member, to be selected from
a list of three nominees submitted by the president of the senate;
(C) An at-large member, to be selected from
a list of three nominees submitted by the speaker of the house of representatives;
(D) A resident of the county where the district
is located, to be selected from a list of three nominees submitted by the president
of the senate; and
(E) A resident of the county where the district
is located, to be selected from a list of three nominees submitted by the speaker
of the house of representatives.
(c) The terms of the appointed members shall be for
four years, commencing on July 1 and expiring on June 30; provided that the governor
shall provide for staggered terms of the initially appointed members so that the
initial terms of one at-large member and one district member selected by lot shall
be for three years, the initial terms of one at-large member and one district member
selected by lot shall be for four years, and the term of the cultural specialist
shall be for two years.
(d) If a vacancy occurs, a member shall be appointed
to fill the vacancy in the same manner as the original appointment within thirty
days of the vacancy or within ten days of the senate's rejection of a previous appointment,
as applicable.
(e) The terms of the director of finance, director
of transportation, director of the office of planning and sustainable development,
and the county directors of planning and permitting, or their respective designees,
shall run concurrently with each director's term of office.
(f) Notwithstanding section 92-15, a majority of all
eligible voting members as specified in this section shall constitute a quorum to
do business, and the concurrence of a majority of all eligible voting members present
shall be necessary to make any action of the board valid. All members shall continue in office until their
respective successors have been appointed and received advice and consent of the
senate. Except as provided herein, no member
appointed under this section shall be an officer or employee of the State or its
political subdivisions.
(g) The members of the board shall serve without compensation
but each shall be reimbursed for expenses, including travel expenses, incurred in
the performance of their duties.
[§206E-245] Transit-oriented development infrastructure improvement
district board; powers; generally. Except
as otherwise limited by this part, with respect to the development, construction,
and improvement of infrastructure within the districts, the board may:
(1) Establish and administer districts and
programs;
(2) Make and execute contracts and all other
instruments necessary or convenient for the exercise of its powers and functions
under this part;
(3) Prepare or cause to be prepared an infrastructure
improvement plan for the district;
(4) Acquire, reacquire, or contract to acquire
or reacquire, by grant or purchase, real, personal, or mixed property, or any interest
therein, and own, hold, clear, improve, rehabilitate, sell, assign, exchange, transfer,
convey, lease, or otherwise dispose of or encumber the same;
(5) Acquire or reacquire by condemnation
real, personal, or mixed property, or any interest therein, for infrastructure improvement;
(6) By itself or in partnership with qualified
persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter,
or repair or provide for the construction, reconstruction, improvement, alteration,
or repair of any infrastructure and own, hold, sell, assign, transfer, convey, exchange,
lease, or otherwise dispose of or encumber any infrastructure improvement;
(7) Arrange or contract for the planning,
replanning, opening, grading, or closing of streets, roads, roadways, alleys, or
other places, or the furnishing of facilities, or for the acquisition of property
or property rights, or for the furnishing of property or services in connection
with an infrastructure improvement project;
(8) Prepare or cause to be prepared plans,
specifications, designs, and estimates of costs for the construction, reconstruction,
rehabilitation, improvement, alteration, or repair of any infrastructure improvement
project, and, from to time, modify the plans, specifications, designs, or estimates
of any infrastructure improvement project;
(9) Provide advisory, consultative, training,
and educational services; technical assistance; and advice to any person, partnership,
or corporation, either public or private, to carry out the purposes of this part,
and engage the services of consultants on a contractual basis for rendering professional
and technical assistance and advice;
(10) Procure insurance against any loss in
connection with its property and other assets and operations in amounts and from
insurers as it deems desirable;
(11) Contract for and accept gifts or grants
in any form from any public agency or from any other source; and
(12) Do any and all things necessary to carry
out its purposes and exercise the powers given and granted in this part.
[]§206E-246[]] Transit-oriented
development infrastructure improvement [district] program;
assessment; rules. (a) The [board] authority shall develop
a transit-oriented development infrastructure improvement [district] program
to identify infrastructure improvements within each [district.] program
area. In determining the required infrastructure
improvements to be undertaken, the [board] authority shall consider
the strategic plan prepared and the prioritization of transit-oriented development
projects established by the Hawaii interagency council for transit-oriented
development pursuant to section 226-63(c) and subsequent plans and studies prepared
by, or approved by, an appropriate governmental agency to further implement
the strategic plan and the transit-oriented development projects therein.
(b) [Whenever the board
determines to undertake, or causes to be undertaken, any
infrastructure improvement as part of the program,] The authority may assess all beneficiaries of the program
a user fee for their fair share of the cost of providing [the] any
infrastructure improvement the user may be [assessed against the real
property in each district] specially benefiting from [the infrastructure
improvement]. The [board]
authority shall determine the program areas
[of each district] that will benefit from the infrastructure improvement
to be undertaken, and if less than the entire [district] transit-oriented
development zone benefits, the [board]
authority may establish [assessment] user
fee areas within the [district.] program area. The [board] authority may issue and sell bonds in amounts as may be authorized by
the legislature to provide funds to finance the infrastructure improvements. [The board may fix the assessments against real property specially benefited. All assessments made pursuant to this section
shall be a statutory lien against each lot or parcel of land assessed from the date
of the notice declaring the assessment until the assessment is paid, and the lien
shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien
shall be superior to the later lien.]
(c) Bonds issued to provide funds to finance transit-oriented
development infrastructure improvements shall be secured [solely by the real
properties benefited or improved, the assessments thereon,] in a manner to
be determined through the bond issuance process, or 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.]
authority. 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
subject to rules adopted by the [board] authority pursuant to this section.
[(d) Notwithstanding any other law to the contrary,
in assessing real property for transit-oriented development infrastructure improvement,
the board
shall assess the real property within an assessment area
according to the special benefits conferred upon the real property by the infrastructure
improvement. These methods may include assessment
on a frontage basis or according to the area of real property within an assessment
area or any other assessment method that assesses the real property according to
the special benefit conferred, or any combination thereof. No assessment levied against real property specially
benefited as provided by this part shall constitute a tax on real property within
the meanings of any constitutional or statutory provisions. No assessment shall be levied against real property
owned by the federal government, the State, or a county, or an agency thereof, without
the prior written consent of the owner.
(e)] (d) The [board shall] authority may adopt rules for the purposes of this part pursuant to
chapter 91, and to provide for the method of undertaking and financing transit-oriented
development infrastructure improvement in [an assessment area or an entire district.]
a program area or transit-oriented development zone. [The rules adopted pursuant to this section
shall include but not be limited to:
(1) The
methods by which the board shall establish assessment areas;
(2) The
method of assessment of real properties specially benefited;
(3) The
costs to be borne by the board, the county in which districts are situated, and
the property owners;
(4) The
procedures before the board relating to the creation of the assessment areas by
the owners of real property therein, including provisions for petitions, bids, contracts,
bonds, and notices;
(5) Provisions
relating to assessments;
(6) Provisions
relating to financing, including bonds, revolving funds, advances from available
funds, special funds for payment of bonds, payment of principal and interest, and
sale and use of the bonds;
(7) Provisions
relating to funds and refunding of outstanding debts;
(8) Provisions
relating to limitations on time to sue; and
(9) Other
related provisions.
(f)] (e) Notwithstanding any other provisions to the contrary,
the [board] authority may, in its discretion, enter into any agreement
with the county in which the [districts] program areas are located
to implement all or part of the purposes of this section.
[(g)] (f) All sums collected under this section shall be
deposited into the transit-oriented development infrastructure improvement [district]
program special fund established under section 206E-247 and shall be applied
solely to:
(1) The
payment of the principal and interest on the bonds and the cost of administering,
operating, and maintaining the program;
(2) The
establishment of reserves; and
(3) Other
purposes as may be authorized in the proceedings providing for the issuance of the
bonds.
If any surplus
remains in the fund after the payment of the bonds chargeable against the fund,
it shall be credited to and become a part of the fund.
[(h)] (g) The transit-oriented development infrastructure
improvements [to be financed through bonds issued by the board] may
be dedicated to the county in which the infrastructure improvements are to be located. The [board] authority shall ensure that the infrastructure improvements are designed
and constructed to meet county requirements and shall enter into an agreement with
the county for dedication of the public facilities.
[(i)] (h) Notwithstanding any law to the contrary, whenever
it becomes necessary to remove, relocate, replace, or reconstruct public utility
facilities that are part of a program, the [board] authority shall
establish by rule the allocation of cost between the [board,] authority,
the affected public utilities, and the [properties] users that may
specially benefit from the improvement, if any.
In determining the allocation of cost, the [board] authority
shall consider the cost allocation policies for districts established by the county
in which the removal, relocation, replacement, or reconstruction is to take place.
[[]§206E-247[]] Transit-oriented development infrastructure improvement
[district] program special fund. (a) There is established in the state treasury the
transit-oriented development infrastructure improvement [district] program
special fund, into which shall be deposited:
(1) All revenues, income, and receipts from
the transit‑oriented development infrastructure improvement [district]
program;
(2) Moneys directed, allocated, or disbursed
to the [district] program from government agencies or private individuals
or organizations, including grants, gifts, awards, and donations[, and
assessments of landowners] for costs to administer and operate the [district;]
program;
(3) [Assessments] User fees collected
under section 206E‑246; and
(4) Moneys appropriated to the fund by the legislature.
(b) Moneys in the fund shall be used only for the purposes of this part.
(c) Investment earnings credited to the assets of the fund shall become part of the fund.
§206E-247.1 Condemnation of real property. The authority, upon making a finding that it
is necessary to acquire any real property for its immediate or future use for the
purposes of this part, may acquire the property, including property already devoted
to a public use, by condemnation pursuant to chapter 101. The property shall not thereafter be taken for
any other public use without the consent of the authority. No award of compensation shall be increased by
reason of any increase in the value of real property caused by the designation of
the transit-oriented development infrastructure improvement program areas, or the
actual or proposed acquisition, use, or disposition of any other real property by
the authority.
[[]§206E-248[]] Memorandum of agreement. The [board] authority may execute
memoranda of agreement with appropriate governmental agencies[.] for purposes
of this part.
[[]§206E-249[]] Annual comprehensive report. The [board] authority shall submit
an annual comprehensive report on the progress of [development within] the
[district] program to the legislature no later than twenty days prior
to the convening of each regular session."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Transit-Oriented Development Infrastructure Improvement Program; HCDA; Department of Business, Economic Development, and Tourism; Program
Description:
Authorizes the Hawaii Community Development Authority to cooperate with or assist public and private sector entities to engage in projects that improve the State. Establishes the transit-oriented development infrastructure improvement program. Repeals the transit-oriented development infrastructure improvement district and board, under chapter 206E, part X, HRS. Makes additional consistent revisions to chapter 206E.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.