Bill Text: HI HB2019 | 2022 | Regular Session | Introduced
Bill Title: Relating To Bonds.
Spectrum: Partisan Bill (Democrat 22-1)
Status: (Introduced - Dead) 2022-02-15 - The committee(s) on HSG recommend(s) that the measure be deferred. [HB2019 Detail]
Download: Hawaii-2022-HB2019-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2019 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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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 for 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 legislature further finds that the State
is committed to the production and maintenance of available affordable housing for
its residents and that housing related projects could benefit from greater access
to private activity bond financing.
Therefore, the purpose
of this Act is to:
(1) Specify that the allocation of the state bond ceiling to the State shall be used entirely for housing related projects;
(2) Specify that if a county elects to receive its allocation of the state bond ceiling, the county shall do so by adopting a resolution and shall specify the allocation amount requested, up to its ceiling;
(3) Make it easier for counties or issuers to assign their allocation back to the State by removing the requirement for a resolution or written certificate;
(4) Remove the authorization for counties or issuers to request additional allocations of the state bond ceiling;
(5) Prioritize projects of counties that assign their allocation back to the State over projects of counties that have their own bond issuance program;
(6) Require counties or issuers that retain their allocation to submit quarterly reports on the status or use of any allocation;
(7) Require a project to first apply to the county in which the project is located, if the county has a private activity bond issuance program, before applying to the State; and
(8) 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 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[;],
which shall be used entirely for housing related projects;
(2) An
amount equal to 37.55 per cent of the annual state ceiling to the city and
county of Honolulu;
(3) An
amount equal to 5.03 per cent of the annual state ceiling to the county of
Hawaii;
(4) An
amount equal to 2.41 per cent of the annual state ceiling to the county of
Kauai; and
(5) An
amount equal to 5.01 per cent of the annual state ceiling to the county of Maui[.];
provided that any county desiring to receive its portion
of the allocation of the annual state ceiling shall elect to do so through adoption
of a resolution by its legislative body and shall specify the allocation amount
requested, up to its ceiling.
(b)
The department, with the approval of the governor, may assign all or any
part of the allocation of the State to any issuer or any county for a specific
calendar year or years. At the request
of the department, any issuer or county to which any part of the State's
allocation has been assigned shall return all or part of the assignment, in
which case the department 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. Any
county or issuer that assigns all or any part of its portion of the allocation of
the annual state ceiling to the State shall be given priority over counties that
have their own bond issuance program for projects in those counties that are subject
to the annual state ceiling.
(e) A county or any issuer that does not assign all
or any part of its portion of the allocation of the annual state ceiling to the
State pursuant to subsection (d) during a calendar year shall submit a quarterly
report to the department on the status or use of that portion of the allocation.
(f) Any project subject to the annual state ceiling
shall first apply to the county in which the project is located, if the county has
a private activity bond issuance program, before applying to the State for the state
allocation.
(g) After December 1 of each calendar year, any unused
annual state ceiling allocation shall be used for housing related purposes."
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 in writing by [December 15] September 30
of each year as to the amount of allocation to such county which has not been
applied to private activity bonds in such year or assigned pursuant to this
chapter.
In preparing such report, the director of finance
of the county shall deduct any allocation which 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 prior to [December 15]
September 30 of each year that it intends to carry forward all or
any portion of its allocation which 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[.]; provided that the State shall use any
reverted allocation for housing related projects, and the amount of reverted allocation
carried forward and used for housing related projects in subsequent years shall
be in addition to, and shall not supplant, any other portions of the annual state
ceiling required by this chapter to be used for housing related projects."
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 this Act shall be repealed on December 31, 2027, 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.
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INTRODUCED BY: |
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Report Title:
State Bonds; Annual Ceiling; Private Activity Bonds
Description:
Specifies that the allocation of the state bond ceiling to the State shall be used entirely for housing related projects. Requires counties that elect to receive their allocation to do so by resolution and specify the allocation amount requested. Removes the authorization for counties or issuers to request additional allocations of the state bond ceiling. Prioritizes projects of counties that assign their allocation back to the State over projects of counties with their own private activity bond issuance program. Requires counties or issuers that retain their allocation to submit quarterly reports on the status or use of any allocation. Requires a project to first apply to the county in which the project is located, if the county has a private activity bond issuance program, before applying to the State. Changes the dates for reverted or remaining allocations and requires certain reverted or remaining allocations to be used for housing related projects. Sunsets on 12/31/2027.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
