Bill Text: HI HB314 | 2014 | Regular Session | Introduced

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Bill Title: Funding of Projects; Crowdfunding

Spectrum: Moderate Partisan Bill (Republican 6-1)

Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [HB314 Detail]

Download: Hawaii-2014-HB314-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	314
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to funding.

 

 

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

 

     SECTION 1.  The legislature finds that despite the best intentions of legislators and other public servants, capital improvement projects in need of completion sometimes take years to be funded through the standard lawmaking process.  Elected officials are limited by time, resources, disagreements over policy, and other numerous factors that may prevent the timely financing of worthy projects.

     In recent years, ordinary Americans have utilized crowdfunding websites to fund public projects and improve their communities.  Individual citizens willingly and directly donate their own funds for these purposes, instilling a sense of hometown pride.

     The purpose of this Act is to create a state crowdfunding website, which shall allow members of the public to:

     (1)  Donate their own money toward the funding of specific public capital improvement projects; and

     (2)  Monitor the progress of those projects as they near completion.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

WEBSITE FOR CROWDFUNDING PUBLIC PROJECTS

     §  -A  Definitions.  Whenever used in this chapter, unless the context otherwise requires:

     "Department" means the department of accounting and general services.

     "Pledger" means an individual who pledges funds toward a proposed project listed on the crowdfunding website.

     "Project" means a capital improvement project, other than:

     (1)  A project that would qualify as a grants and subsidies project pursuant to chapter 42F;

     (2)  A project that solely funds the hiring of employees; and

     (3)  A project for which the agency responsible for completion of the project is a county entity.

     §  -B  Crowdfunding website established.  (a)  Before the twentieth day before the convening of the 2015 regular legislative session, the department shall post a permanent crowdfunding website on the Internet.

     (b)  A website created pursuant to subsection (a) shall contain a description and appropriation amount for each project that appears in each legislative bill introduced for the 2015 regular session and each subsequent session.

     (c)  A website created under this section shall be free to use and publicly accessible; provided that the website shall require every pledger to register, provide identification verification, and submit a deposit before pledging money toward a project.

     (d)  The comptroller is authorized to designate one or more state agencies to participate in the development, establishment, maintenance, and support of the crowdfunding website.

     §  -C  Project verification process.  (a)  Before pledgers may pledge funds for a project listed on the crowdfunding website, the project shall pass the project verification process by:

     (1)  Receiving, from the responsible agency, either:

          (A)  A statement of full concurrence; or

          (B)  A statement of qualified concurrence, accompanied by, among other information, a description of mandatory amendments necessary for full concurrence; and

    (2)  If applicable, conforming to the mandatory amendments required by a responsible agency's statement of qualified concurrence.

     (b)  Notwithstanding the foregoing contrary provision of this section, a project shall not be required to complete the project verification process if its presence on the crowdfunding website is by virtue of its appearance on the original draft of one of the proposed annual budget bills of the governor, the judiciary, or the legislature.

     §  -D  Responsible agencies.  (a)  A responsible agency, when commenting on a proposed project pursuant to section  -C(a), shal1 make a reasonable effort to provide a substantive response to the referral, as described in subsections (b), (c), and (d).

     (b)  A statement of full concurrence indicates that the responsible agency would proceed with the project as proposed if necessary funding became available.  Such a statement shall, at a minimum, be accompanied by the basis for the concurrence, an estimate of the cost of the project, and an estimate of the project construction start date.

     (c)  A statement of opposition indicates that the responsible agency would not proceed with the project, regardless of the availability of funding and the possibility of any amendments to the project.  Such a statement shall, at a minimum, be accompanied by the basis for the opposition.

     (d)  A responsible agency's statement of qualified concurrence shall contain, at a minimum, the basis for the concurrence, the basis for the mandatory amendments, a description of mandatory amendments necessary for full concurrence, an estimate of the cost of the project as amended, and, if separate phases are necessary, a breakdown of the project into phases.

     §  -E  The funding process.  (a)  After the department determines that no project verification steps need to be completed for a project, the crowdfunding site shall publish the availability of the project for pledges.

     (b)  An individual who wishes to pledge money toward a project shall submit a deposit, which the department shall place into the crowdfunding trust fund, that is the greater of:

     (1)  $25; or

     (2)  Ten per cent of the amount the pledger will pledge to the project.

     (c)  No pledge from any pledger shall exceed ten per cent of the total estimated cost of the proposed project.

     (d)  After the project is pledged the amount of funds necessary for funding the estimated cost of the project, the department shall request the pledged amount from each pledger, less the amount the pledger deposited toward the project.

     (e)  If the department does not receive the balance of a pledger's pledged amount within sixty days after the department requests the pledged amount from the pledger, the pledger shall forfeit the amount the pledger deposited into the crowdfunding trust fund.  If, by that time, substitute pledges are not available to remedy the deficiency caused by the pledger's failure to pay the requested amount, each remaining pledger shall have the option of:

     (1)  Receiving a refund, with interest, to be determined by administrative rule; or

     (2)  Applying his or her deposit toward another project on the crowdfunding website.

     (f)  The department shall not release the funds collected pursuant to this section to the responsible agency of a project until all the pledged amounts for the relevant project have been collected.

     §  -F  The crowdfunding trust fund.  (a)  There is established the crowdfunding trust fund to be administered by the department.

     (b)  The following may be deposited into the fund: appropriations made by the legislature, pledged amounts, interest, and moneys from other sources.

     (c)  Moneys available in the fund shall be used for the purpose of providing, in whole or in part, moneys for projects that attempt to establish, construct, improve, restore, repair, or maintain a state property within this State.

     (d)  The department shall submit an annual report to the legislature no later than twenty days before the convening of each regular session describing the projects funded and any barriers to developing projects pursuant to this section.

     §  -G  Status of funded projects.  (a)  For each project funded pursuant to this section, the crowdfunding website shall contain the following information, which shall, at a minimum, be updated on a seminannual basis:

     (1)  The project title;

(2)  The phase of the project;

(3)  The status of the project;

(4)  Expenditures made;

(5)  Balances remaining;

(6)  Costs incurred but not yet expended;

(7)  Procurement steps taken;

(8)  Environmental issues encountered;

(9)  Historic preservation issues encountered;

(10) The names of all consultants and contractors

     associated with the project;

(11) Dates and amounts of all construction awards; and

(12) Estimated and actual dates of construction.

     (b)  Every governmental agency shall furnish the department with all such documents and information as the department may from time to time require to fulfill the requirements of this section.

     §  -H  Adoption of rules.  The department shall adopt rules, pursuant to chapter 91, necessary for the purposes of this chapter.

     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.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________
	_____________________________

 

 

Report Title:

Funding of Projects; Crowdfunding

 

Description:

Creates a state crowdfunding website, which allows members of the public to donate their own money toward the funding of specific public capital improvement projects and monitor the progress of those projects as they near completion.

 

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