Bill Text: HI HB565 | 2012 | Regular Session | Introduced
Bill Title: State Lands; Lease Agreements; New Markets Tax Credit Program
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB565 Detail]
Download: Hawaii-2012-HB565-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
565 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to state leases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The State has a public interest in improving the economy. The legislature finds that, during times of economic downturn, there are resources the State can use to partner with the private sector to create jobs.
The purpose of this Act is to allow the department of land and natural resources and other state agencies that have administrative control over state lands to enter into lease agreements with businesses that are qualified community development entities under the federal New Markets Tax Credit Program.
SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"§171- New Markets Tax Credit Program; lease agreements. (a) The department and any other state agency that administers or holds title to state lands may enter into lease agreements with corporations or partnerships engaged in projects under the federal New Markets Tax Credit Program, pursuant to subtitle C of the Community Renewal Tax Relief Act of 2000 (P.L. 106-554) and section 45D of the Internal Revenue Code.
(b) The lease rental of any lease agreement entered into pursuant to subsection (a) shall be no more than ten per cent below the prevalent market rate for lands of similar fair market value.
(c) In order to enter into a lease agreement pursuant to subsection (a):
(1) The corporation or partnership shall be a qualified community development entity, as that term is defined by section 45D(c)(1) of the Internal Revenue Code; and
(2) The lease agreement shall be for a project:
(A) That is a qualified equity investment, as that term is defined by section 45D(b)(1) of the Internal Revenue Code;
(B) For which the corporation or partnership has been awarded an allocation under the New Markets Tax Credit Program;
(C) That is valued at no less than $20,000,000; and
(D) For which no less than eighty per cent of the workforce employed to perform construction shall be comprised of Hawaii residents, as determined in accordance with section 103B-3(b)."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2011, and shall be repealed on December 31, 2012; provided that lease agreements entered into prior to January 1, 2013, shall continue at the agreed rate.
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INTRODUCED BY: |
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Report Title:
State Lands; Lease Agreements; New Markets Tax Credit Program
Description:
Allows the DLNR and other agencies with administrative control over state lands to enter into lease agreements with businesses that engage in projects under the New Markets Tax Credit Program. Effective 7/1/11. Sunset 12/31/12.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
