Bill Text: HI SB1101 | 2024 | Regular Session | Amended
Bill Title: Relating To Tax Increment Bonds.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed) 2023-12-11 - Carried over to 2024 Regular Session. [SB1101 Detail]
Download: Hawaii-2024-SB1101-Amended.html
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THE SENATE |
S.B. NO. |
1101 |
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THIRTY-SECOND LEGISLATURE, 2023 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAX INCREMENT BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance committee" shall mean the chairperson of the finance committee of the council of the county, or if the council of the county does not have a finance committee, the member of the council appointed by the council to perform the functions required by this chapter to be performed by the chairperson of the finance committee of the council.
"Corporation counsel" shall mean the chief legal advisor or legal representative of the county.
"County" shall include each county of the State, including the city and county of Honolulu.
"Director of finance" shall mean the director of finance of the county, or if the county does not have a director of finance, the officer of the county in whom is vested the functions and powers of maintaining the treasury of the county and issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" shall mean the fiscal year of the county as defined in section 46-41.
"Special assessment bonds" shall
mean bonds issued under special improvement statutes when the only security for
[such] special assessment bonds is the assessments or special
taxes levied and assessed under those statutes or properties subject to the
assessments or special taxes.
As used in sections 47C-1 through 47C-6,
the words or terms "bonds", "general obligation bonds",
"net revenue", "net user tax receipts", "reimbursable
general obligation bonds", "revenue bonds", "special
purpose revenue bonds", "tax increment bonds", and
"user tax" shall have the respective meanings and inclusions given to
[such] those words and terms in section 12 of article VII of the
constitution."
SECTION 2. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2 Determination of funded debt. Within ninety days after the first day of
each fiscal year, the director of finance of each county shall ascertain and
set forth in a tabular summary the total indebtedness of the county outstanding
and unpaid as of the first day of [such] that fiscal year. The summary shall include the following:
(1) An
itemization of the total principal amount of all general obligation bonds,
reimbursable general obligation bonds, revenue bonds, special assessment bonds,
special purpose revenue bonds, and all other bonds of the county outstanding
and unpaid, including bonds [which]
that may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9,
and 10 of section 13 of article VII of the constitution when determining
the funded debt of the county for the purposes of that section together with a
grand total of such total principal amounts[.];
(2) The
total principal amount of all bonds of the State required by clause (7) of
section 13 of article VII of the constitution to be included when determining
the funded debt of the county for the purposes of that section[.];
(3) A
grand total of the total principal amounts set forth in the summary pursuant to
paragraphs (1) and (2)[.];
(4) An
itemization of the total of the principal amount of all general obligation
bonds, reimbursable general obligation bonds, revenue bonds, special assessment
bonds, and special purpose revenue bonds of the county outstanding and unpaid [which]
that may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, and 9 of section
13 of article VII of the constitution when determining the total funded debt of
the county for the purposes of that section, together with a grand total of
such total principal amounts[.]; and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The director of finance shall also prepare
and attach to the tabular summary [such] supporting schedules as may be
required to set forth in detail the bonds included in the itemizations required
by paragraphs (1) and (4). [Such]
The supporting schedules shall also set forth or make reference to the
relevant statutory, charter, ordinance, or other legal provision, and the
relevant figures of the tax increment as defined in section 46-102,
assessment collections, revenues, user tax receipts, cost of operation,
maintenance and repair, net revenues, net user tax receipts, reimbursements to
the general fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 3. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3 Supplemental determination. Whenever the county proposes to issue bonds,
the director of finance shall prepare a supplemental summary of the
indebtedness of the county setting forth therein [such] information and
findings as of a date within thirty days of the delivery of [such] the
bonds as will bring up to date and make current the most recent summary
prepared in accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such]
supporting schedules as may be required to set forth in detail the variations
and changes from the summary prepared in accordance with section 47C-2,
including [such] legal and financial findings as will justify any
changes in the itemizations set forth in [such] the previous summary
pursuant to the requirements of paragraph (4) of section 47C-2. If all the bonds proposed to be issued may be
excluded when determining the funded debt of the county for the purposes of
section 13 of article VII of the constitution by reason of the provisions of
clauses 2 [or], 4, or 10 of that section, the supplemental
summary and supporting schedules may be limited to [such] those
bonds and findings as are necessary to justify [such] the
exclusion under [such] those clauses.
In the event proceeds of the bonds proposed
to be issued are to be applied to the retirement in the then fiscal year of
outstanding bonds, including notes issued in anticipation of the issuance of
the bonds proposed to be issued, for the purpose of applying the provisions of
clause 1 of section 13 of article VII of the constitution to the bonds to be
retired, that amount of [such] proceeds to be so applied may be
considered and treated as moneys irrevocably set aside for the payment of [such]
those bonds."
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 and upon ratification of a constitutional amendment expressly providing that the legislature may authorize the counties to issue tax increment bonds and excluding tax increment bonds from determinations of the funded debt of the counties.
Report Title:
Tax Increment Bonds; County Debt Limit Statements; Statutory Amendments
Description:
Conforms county debt limit statements law to permit counties to exclude tax increment bonds from the debt limit of the counties if a constitutional amendment authorizing the use of tax increment bonds and excluding tax increment bonds from determinations of the Counties' funded debt is ratified. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
