HB 85: RELATING TO THE LAND CONSERVATION FUND.

A BILL FOR AN ACT

RELATING TO THE LAND CONSERVATION FUND.

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

     SECTION 1.  The legislature finds that the land conservation fund does not receive adequate funding to conserve land for watershed protection, coastal preservation, flood prevention, parks, habitat protection, cultural preservation, agricultural production, and open space and scenic resources.  The legislature further finds that establishing a reliable, consistent revenue stream for the land conservation fund will ensure greater protection of these lands and resources for future generations; grow a more sustainable and resilient future; support Native Hawaiian cultural practices, including the preservation of significant archaeological and natural resources; and help to maintain sufficient open space and breathing room for residents and visitors, all of which serve the best interests of the people of Hawaii.

     In addition, reliable funding for the acquisition and management of resource value lands strengthens the State's portfolio of high-value, long-term investments in protecting Hawaii's natural capital, and the returns on this investment accelerate community efforts to strengthen resilience, promote health and wellness, and continue building and operating new models of economic opportunity.

     The purpose of this Act is to help ensure a certain amount of funding is made available for the land conservation fund program.

     SECTION 2.  Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

     "§247-7  Disposition of taxes.  All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

     (1)  [Ten]      per cent or [$5,100,000,]           , whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; and

     (2)  Fifty per cent or $38,000,000, whichever is less, shall be paid into the rental housing revolving fund established by section 201H-202."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Conveyance Tax; Land Conservation Fund

Description:

Sets the amount of conveyance tax revenues to be paid into the Land Conservation Fund to a certain per cent or monetary cap, whichever is less, of conveyance taxes collected each fiscal year.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to the land conservation fund.

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

     SECTION 1.  The legislature finds that the land conservation fund does not receive adequate funding to conserve land for watershed protection, coastal preservation, flood prevention, parks, habitat protection, cultural preservation, agricultural production, and open space and scenic resources.  The legislature further finds that establishing a reliable, consistent revenue stream for the land conservation fund will ensure greater protection of these lands and resources for future generations; grow a more sustainable and resilient future; support Native Hawaiian cultural practices, including the preservation of significant archaeological and natural resources; and help to maintain sufficient open space and breathing room for residents and visitors, all of which serve the best interests of the people of Hawaii.

     In addition, reliable funding for the acquisition and management of resource value lands strengthens the State's portfolio of high-value, long-term investments in protecting Hawaii's natural capital, and the returns on this investment accelerate community efforts to strengthen resilience, promote health and wellness, and continue building and operating new models of economic opportunity.

     The purpose of this Act is to help ensure adequate funding for the land conservation fund and legacy land conservation program by restoring the amount of conveyance tax revenues to be paid into the land conservation fund to ten per cent of conveyance taxes collected each fiscal year.

     SECTION 2.  Section 247-7, Hawaii Revised Statutes, is amended to read as follows:

     "§247-7  Disposition of taxes.  All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

     (1)  Ten per cent [or $5,100,000, whichever is less,] shall be paid into the land conservation fund established pursuant to section 173A-5; and

     (2)  Fifty per cent or $38,000,000, whichever is less, shall be paid into the rental housing revolving fund established by section 201H-202."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Conveyance Tax; Land Conservation Fund

Description:

Restores the amount of conveyance tax revenues to be paid into the Land Conservation Fund to ten per cent of conveyance taxes collected each fiscal year.

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

STAND. COM. REP. NO.  589

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 85

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committees on Water & Land and Energy & Environmental Protection, to which was referred H.B. No. 85 entitled:

"A BILL FOR AN ACT RELATING TO THE LAND CONSERVATION FUND,"

beg leave to report as follows:

     The purpose of this measure is to remove the annual $5,100,000 cap on the amount of conveyance tax revenues to be paid into the Land Conservation Fund.

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources; one member of the Hawai‘i County Council; Kua‘āina Ulu ‘Auamo; Makahanaloa Fishing Association; Hawai‘i Land Trust; Hawai‘i Farmers Union; and numerous individuals.  Your Committees received comments on this measure from the Hawai‘i Association of REALTORS and Tax Foundation of Hawaii.

     Your Committees find that the Land Conservation Fund was established by Act 156, Session Laws of Hawaii 2005, to create permanent, adequate funding for land conservation.  Your Committees further find that the Land Conservation Fund serves a key function in protecting and preserving Hawaii's natural resources by providing funding for the acquisition of lands that are critical to watershed protection, agricultural production, habitation conservation, and cultural preservation.  However, your Committees find that there is value in establishing a set maximum cap on the amount of conveyance tax revenue to be transferred into the Land Conservation Fund each fiscal year.

     Accordingly, your Committees have amended this measure by:

     (1)  Changing the conveyance tax revenues to be transferred into the Land Conservation Fund to an unspecified percentage;

     (2)  Restoring the existing statutory maximum monetary cap on the amount of conveyance tax revenues to be transferred into the Land Conservation Fund and changing that amount to an unspecified amount;

     (3)  Changing the effective date to July 1, 3000, to encourage further discussion;

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Water & Land and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 85, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 85, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Water & Land and Energy & Environmental Protection,