HOUSE OF REPRESENTATIVES	H.B. NO.	1908
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to water and sewer infrastructure.

 

 

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

 

     SECTION 1.  Chapter 174C, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§174C-     State water and sewer surcharge.  (a)  A state water and sewer surcharge shall be imposed by the counties on each water utility customer's water and sewer bill.  The purpose of the state water and sewer surcharge shall be to assist in funding repair, maintenance, and construction of water and sewer infrastructure.

     (b)  The rate of the state water and sewer surcharge shall be established by the commission pursuant to chapter 91.  If the commission determines that annual revenues from the state water and sewer surcharge will exceed the amount established pursuant to section 206E-A(d) in any fiscal year, the commission may temporarily reduce the state water and sewer surcharge rate without regard to chapter 91.

     (c)  Each county may retain one per cent of the gross proceeds of the surcharge collected in that county for the costs of the assessment, collection, disposition, and oversight of the surcharge.

     (d)  All state water and sewer surcharges collected by a county, less any funds retained pursuant to subsection (c), shall be paid to the Hawaii community development authority quarterly and deposited by the Hawaii community development authority into the state water and sewer surcharge special fund established pursuant to section 206E-A."

     SECTION 2.  Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part  .  Water and sewer infrastructure

     §206E-A  State water and sewer surcharge special fund.  (a)  There is established within the state treasury the state water and sewer surcharge special fund to be administered by the authority.  The authority shall expend moneys in the state water and sewer surcharge special fund for the water and sewer infrastructure grant program established pursuant to section 206E-B.

     (b)  The authority shall report to the legislature annually on the amount of moneys expended from the state water and sewer surcharge special fund and the amount of moneys accrued to the credit of the fund by source.

     (c)  The state water and sewer surcharge special fund shall be held separate and apart from all other moneys, funds, and accounts in the state treasury; provided that any moneys received as deposits or contributions from the federal government or private entities shall be deposited and accounted for in accordance with the conditions, if any, established by the federal government or private entities.  Earnings on the investment of the assets of the funds shall become a part of the fund.

     (d)  All unencumbered and unexpended moneys in excess of $         remaining on balance in the state water and sewer surcharge special fund at the close of June 30 of each year shall lapse to the credit of the general fund.

     §206E-B  Water and sewer infrastructure grant program.  (a)  There is established the water and sewer infrastructure grant program.  The authority shall expend the funds in the state water and sewer surcharge special fund established pursuant to section 206E-A to award grants to counties for the following projects:

     (1)  Repair and maintenance of existing water or sewer infrastructure; and

     (2)  Construction of new water or sewer infrastructure.

     (b)  The authority may adopt rules pursuant to chapter 91 to implement the water and sewer infrastructure grant program."

     SECTION 3.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2020.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Water and Sewer Surcharge; Repair; Infrastructure; Maintenance; Construction; CWRM; HCDA

 

Description:

Establishes a state water and sewer surcharge for all water utility customers.  Requires the Commission on Water Resource Management to establish the surcharge rate.  Requires the Hawaii Community Development Authority to expend the revenues of the surcharge to award grants to the counties to assist in funding repair, maintenance, and construction of water and sewer infrastructure.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.