SB 3218: Resilient Infrastructure for Shelter and Equity Bonds; Counties; County Debt Limit Statements; Transit-Oriented Development Zone
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-05-02
Current Status:
Passed
(2026-05-26: Act 031, on 05/22/2026 (Gov. Msg. No. 1131).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
What does this bill do?
The bill lets counties create financing districts inside transit-oriented development zones and issue "resilient infrastructure for shelter and equity" bonds (replacing the prior "tax increment" terminology) to pay for public works, housing, and related project costs. It defines what counts as a transit-oriented zone, adjusts how property tax revenues from those districts are split, and allows counties to exclude these bonds from their debt-limit calculations if a matching constitutional amendment is approved.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Part I: Substitutes the word "tax increment" with "resilient infrastructure for shelter and equity" for purposes of the Resilient Infrastructure for Shelter and Equity Act, except under certain circumstances. Part II: Conforms state law concerning county debt limits to permit counties to exclude resilient infrastructure for shelter and equity bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of resilient infrastructure for shelter and equity bonds and excluding resilient infrastructure for shelter and equity bonds from determinations of the counties' funded debt is ratified. (CD1)
Part I: Substitutes the word "tax increment" with "resilient infrastructure for shelter and equity" for purposes of the Resilient Infrastructure for Shelter and Equity Act, except under certain circumstances. Part II: Conforms state law concerning county debt limits to permit counties to exclude resilient infrastructure for shelter and equity bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of resilient infrastructure for shelter and equity bonds and excluding resilient infrastructure for shelter and equity bonds from determinations of the counties' funded debt is ratified. Effective 7/1/3000. (HD2)
Part I: Substitutes the word "tax increment" with "housing infrastructure growth" for purposes of the Housing Infrastructure Growth Financing Act, except under certain circumstances. Part II: Conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified. Effective 7/1/3000. (HD1)
Conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified. Effective 7/1/2050. (SD2)
Conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified. (SD1)
Conforms county debt limit statements law to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified.
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THE SENATE |
S.B. NO. |
3218 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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C.D. 1 |
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A BILL FOR AN ACT
RELATING TO BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 46-102, Hawaii Revised Statutes, is amended as follows:
1. By adding two new definitions to be appropriately inserted and to read:
""Resilient infrastructure for shelter and equity bonds" has the same meaning as in article VII, section 12, of the Hawaii State Constitution that are issued pursuant to this part.
"Transit-oriented development zone" means:
(1) For a county with a population of five hundred thousand or more:
(A) A transit-oriented development infrastructure improvement program area pursuant to section 206E-243;
(B) A transit-oriented development special district established by county ordinance; or
(C) An area within a one-half-mile radius of a public transit center or bus hub, as designated by the county; or
(2) For a county with a population of less than five hundred thousand:
(A) A county-designated transit area;
(B) An area situated along major bus routes; or
(C) An area within a one-half-mile radius of a bus stop, as designated by the respective county."
2. By amending the definitions of "adjustment rate", "assessment base", and "assessment increment" to read:
""Adjustment rate"
means a percentage rate or rates of adjustment of the assessment base
determined by the director of finance at the time the [tax increment] resilient
infrastructure for shelter and equity district is established, based on the
historical and projected increases to the assessed values of taxable real
property within the boundary of the [tax increment] resilient
infrastructure for shelter and equity district and the projected cost
increases to the county for servicing the new developments within the [tax
increment] resilient infrastructure for shelter and equity district.
"Assessment base" means
the total assessed values of all taxable real property in a [tax increment]
resilient infrastructure for shelter and equity district as most
recently certified by the director of finance on the date of creation of the [tax
increment] resilient infrastructure for shelter and equity district.
"Assessment increment"
means the amount by which the current assessed values of taxable real property
located within the boundaries of a [tax increment] resilient
infrastructure for shelter and equity district exceeds its assessment
base."
3. By amending the definitions of "council" and "county" to read:
""Council" means the
council of the county in which a [tax increment] resilient
infrastructure for shelter and equity district is situated.
"County" has the same
meaning as [set forth] in section 1‑22 and means the county
in which a [tax increment] resilient infrastructure for shelter and
equity district is situated."
4. By amending the definition of "project costs" to read:
""Project costs"
means expenditures made or estimated to be made or monetary obligations
incurred or estimated to be incurred by the agency that are listed in a [tax
increment] resilient infrastructure for shelter and equity financing
plan as costs of public works or public improvements in a [tax increment]
resilient infrastructure for shelter and equity district, plus other
costs incidental to the expenditures or obligations. Project costs include:
(1) Capital costs, including the actual costs of the construction of public works or public improvements, new buildings, structures, and fixtures; the actual costs of the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; and the actual costs of the acquisition, clearing, and grading of land;
(2) Financing costs,
including[, but not limited to,] all necessary and incidental expenses
related to the issuance of [tax increment] resilient infrastructure
for shelter and equity bonds and all interest paid to holders of evidences
of indebtedness or other obligations issued to pay for project costs, any
capitalized interest, the funding or replenishment of any reserves securing
the payment of the resilient infrastructure for shelter and equity bonds,
and any premium paid over the principal amount of the obligations because of
the redemption of the obligations prior to maturity;
(3) Professional service costs, including architectural, planning, engineering, marketing, appraisal, financial consultant, and special services and legal advice;
(4) Imputed
administrative costs, including reasonable charges for the time spent by
employees of the agency in connection with the implementation of a [tax
increment] resilient infrastructure for shelter and equity financing
plan;
(5) Relocation costs to the extent required by federal or state law;
(6) Organizational
costs, including the costs of conducting environmental impact studies or other
studies, the costs of publicizing the creation of a [tax increment] resilient
infrastructure for shelter and equity district, and the cost of
implementing the [tax increment] resilient infrastructure for shelter
and equity financing plan for the [tax increment] resilient
infrastructure for shelter and equity district; and
(7) Payments
determined by the county council to be necessary or convenient to the creation
of a [tax increment] resilient infrastructure for shelter and equity
district or to the implementation of the [tax increment] resilient
infrastructure for shelter and equity financing plan for the [tax
increment] resilient infrastructure for shelter and equity
district."
5. By amending the definitions of "tax increment district", "tax increment financing plan", and "tax increment fund" to read:
"["Tax increment] "Resilient
infrastructure for shelter and equity district" or
"district" means a contiguous or noncontiguous geographic area
designated pursuant to section 46‑103 by the county council for the
purpose of [tax increment] resilient infrastructure for shelter and
equity financing[.] provided that the district shall be located
entirely within a transit-oriented development zone.
["Tax increment] "Resilient
infrastructure for shelter and equity financing plan" means the plan
for [tax increment] resilient infrastructure for shelter and equity
financing for a [tax increment] resilient infrastructure for shelter
and equity district submitted to the county council. The [tax increment] resilient
infrastructure for shelter and equity financing plan shall contain
estimates of: [project]
(1) Project
costs; [amount]
(2) The amount
of [tax increment] resilient infrastructure for shelter and equity
bonds to be issued; [sources]
(3) Sources of
revenue to finance or otherwise pay project costs; [the]
(4) The most
recent assessed value of taxable real property in the district; [the]
(5) The
duration of the district's existence; and [statements]
(6) Statements
from the county's department of finance, and the county's department of budget,
if applicable, regarding the financial and budgetary impacts on the county
resulting from the proposed [tax increment] resilient infrastructure
for shelter and equity financing plan.
["Tax increment] "Resilient
infrastructure for shelter and equity fund" means a fund [which
shall be] held by the director of finance or other fiduciary designated by
the county council and into which all tax increments and other moneys pledged
by the county for payment of [tax increment] resilient infrastructure
for shelter and equity bonds are paid, and all proceeds from the sale of [tax
increment] resilient infrastructure for shelter and equity bonds are
deposited, and from which moneys are disbursed to pay project costs for the [tax
increment] resilient infrastructure for shelter and equity district
or to satisfy claims of holders of [tax increment] resilient
infrastructure for shelter and equity bonds issued for the district."
6. By repealing the definition of "tax increment bonds".
[""Tax increment
bonds" mean bonds, notes, interim certificates, debentures, or other
obligations issued pursuant to this part."]
SECTION 2. Section 46-104, Hawaii Revised Statutes, is amended to read as follows:
"§46-104
County powers. A county may
exercise any power necessary and convenient to establish [tax increment]
resilient infrastructure for shelter and equity districts, including the
power to:
(1) Create [tax increment] resilient
infrastructure for shelter and equity districts within a
transit-oriented development zone and determine the boundaries of the
districts; provided that the county shall not establish the district unless
the county council first adopts a resolution that contains detailed findings of
facts demonstrating that the financing of the proposed public works or public
improvements through a community facilities district pursuant to section 46‑80.1,
or the Hawaii community development authority transit-oriented development
infrastructure improvement district program has been utilized to the maximum
feasible extent, or that the financing is legally or financially infeasible,
thereby exhausting those options before or in conjunction with, the issuance of
resilient infrastructure for shelter and equity bonds; provided further that
for purposes of this paragraph, financial infeasibility is strictly limited to
circumstances in which the county council finds, based on independent financial
analysis, that the imposition of community facilities district assessments or
special taxes would:
(A) Render housing units unaffordable to the specific income groups the project is intended to serve;
(B) Violate or conflict with affordability covenants, federal or state housing program requirements, or rent restrictions applicable to the project; or
(C) Cause the project to fail to meet standard industry thresholds for debt service coverage or financial feasibility, thereby preventing the project from proceeding;
provided further that no district shall include any land classified as an agricultural district pursuant to chapter 205;
(2) Issue [tax increment] resilient
infrastructure for shelter and equity bonds;
(3) Deposit tax increments into the [tax
increment] resilient infrastructure for shelter and equity fund
created for a [tax increment] resilient infrastructure for shelter
and equity district; and
(4) Enter into agreements, including agreements
with [the] any redevelopment agency and owners or developers of
project lands and bondholders, determined to be necessary or convenient to
implement redevelopment plans or community development plans, as the case may
be, and achieve their purposes."
SECTION 3. Section 46-105, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) If a county exercises the power allowed under
this part, then commencing with the first payment of real property taxes levied
by the county subsequent to the time a [tax increment] district takes
effect, receipts from real property taxes shall be allocated and paid over as
follows:
(1) The amount of real property tax produced from the assessment base shall be paid to the county general fund; and
(2) The tax increments produced from the
assessment increment in the [tax increment] resilient infrastructure
for shelter and equity district shall be applied as follows:
(A) First, an amount equal to the installment of
(i) principal and interest falling due of any [tax increment] resilient
infrastructure for shelter and equity bonds, or (ii) any project cost
approved by the county, shall be deposited into the [tax increment] resilient
infrastructure for shelter and equity fund established for the [tax
increment] resilient infrastructure for shelter and equity district[.];
(B) Second, an amount equal to the adjustment rate
times the amount of real property tax produced from the assessment base shall
be computed and paid to the county general fund[.]; and
(C) Third, the remaining amount of tax increments,
if any, shall be deposited into the [tax increment] resilient
infrastructure for shelter and equity fund established for the [tax
increment] resilient infrastructure for shelter and equity
district."
SECTION 4. Section 46-106, Hawaii Revised Statutes, is amended to read as follows:
"§46-106
[Tax increment] Resilient
infrastructure for shelter and equity bonds. (a) A
county may issue [tax increment] resilient infrastructure for shelter
and equity bonds, the proceeds of which may be used to pay project costs
for a [tax increment] resilient infrastructure for shelter and equity
district or to satisfy claims of bondholders.
The county may issue refunding bonds [previously issued by the county]
for the purpose of paying or retiring resilient infrastructure for shelter
and equity bonds previously issued by the county, or in exchange for [tax
increment] resilient infrastructure for shelter and equity bonds
previously issued by the county.
Principal and interest on [tax increment] resilient
infrastructure for shelter and equity bonds shall be made payable, as to
both principal and interest, solely from the [tax increment] resilient
infrastructure for shelter and equity fund established for the [tax
increment] resilient infrastructure for shelter and equity district.
A county
may provide in its contract with the owners or holders of the [tax increment]
resilient infrastructure for shelter and equity bonds that the county
will pay into the [tax increment] resilient infrastructure for
shelter and equity fund all or any part of the revenue or money produced or
received as a result of the operation or sale of a facility acquired, improved,
or constructed pursuant to a redevelopment plan or community development plan,
as the case may be, to be used to pay principal and interest on the [tax
increment] resilient infrastructure for shelter and equity bonds
and, if a county so agrees, the owners or holders of the [tax increment]
resilient infrastructure for shelter and equity bonds may have a lien or
mortgage on any facility acquired, improved, or constructed with the proceeds
of the [tax increment] resilient infrastructure for shelter and
equity bonds.
(b) [Tax increment] Resilient
infrastructure for shelter and equity bonds, and the income therefrom,
issued pursuant to this part shall be exempt from all state and county
taxation, except estate and transfer taxes.
The bonds
shall be authorized by ordinance and may be issued in one or more series. The [tax increment] resilient
infrastructure for shelter and equity bonds of each issue shall be dated,
be payable upon demand or mature at a time or times not exceeding thirty years
from their date of issuance, bear interest at a rate or rates, be in a
denomination or denominations, be in registered form, have a rank or priority,
be executed in a manner, be payable in a medium of payment at a place or
places, and be subject to terms of redemption (with or without premium), be
secured in a manner, and have other characteristics as may be provided by the
ordinance providing for issuance of the bonds or by the trust indenture or
mortgage issued in connection with the bonds.
The county may sell [tax increment] resilient infrastructure
for shelter and equity bonds in such manner, either at public or private
sale, and for such price as it may determine.
(c) Prior to the preparation of definitive [tax
increment] resilient infrastructure for shelter and equity bonds,
the county may issue interim receipts or temporary bonds exchangeable for
definitive bonds when such bonds have been executed and are available for
delivery.
(d) Should any bond issued under this part become mutilated or be lost, stolen, or destroyed, the county may cause a new bond of like date, number, and tenor to be executed and delivered in exchange and substitution for, and upon the cancellation of such mutilated bond, or in lieu of and in substitution for such lost, stolen, or destroyed bond. Such new bond shall not be executed or delivered until the holder of the mutilated, lost, stolen, or destroyed bond:
(1) Has paid reasonable expenses and charges in connection therewith;
(2) In the case of a lost, stolen, or destroyed bond, has filed with the county or its fiduciary satisfactory evidence that such bond was lost, stolen, or destroyed, and that the holder was owner thereof; and
(3) Has furnished indemnity satisfactory to the county.
(e) Notwithstanding any of the provisions of this
part or any recital in any [tax increment] resilient infrastructure
for shelter and equity bond issued under this part, all [tax increment]
resilient infrastructure for shelter and equity bonds shall be deemed to
be investment securities under the Uniform Commercial Code, chapter 490,
subject only to the provisions pertaining to registration.
(f) In any suit, action, or other proceeding
involving the validity or enforceability of a bond issued under this part or
the security for a bond or note issued under this part, a bond reciting in
substance that it had been issued by the county for a [tax increment] resilient
infrastructure for shelter and equity district shall be conclusively deemed
to have been issued for that purpose, and the development or redevelopment of
the district conclusively shall be deemed to have been planned, located, and
carried out as provided by this part.
(g) All banks, trust companies, savings banks and
institutions, building and loan associations, savings and loan associations,
investment companies, and other persons carrying on a banking or investment
business; all insurance companies, insurance associations, and other persons
carrying on an insurance business; and all personal representatives,
administrators, curators, trustees, and other fiduciaries legally may invest
sinking funds, money, or other funds belonging to them or within their control
in [tax increment] resilient infrastructure for shelter and equity
bonds issued by a county pursuant to this part.
The bonds shall be authorized security for all public deposits. Any person, political subdivision, and
officer, public or private, are authorized to use funds owned or controlled by
them for the purchase of [tax increment] resilient infrastructure for
shelter and equity bonds. This part
does not relieve any person of the duty to exercise reasonable care in
selecting securities.
(h) [Tax increment] Resilient
infrastructure for shelter and equity bonds shall be payable only out of
the [tax increment] resilient infrastructure for shelter and equity
fund. The county council may pledge
irrevocably all or a part of the fund for payment of the bonds. The part of the fund pledged in payment
thereafter shall be used only for the payment of the bonds or interest or
redemption premium, if any, on the bonds until the bonds have been fully
paid. A holder of the bonds shall have a
lien against the fund for payment of the bonds and interest thereon and may
either at law or in equity protect and enforce such lien.
(i) No officer of the county, including
any officer executing [tax increment] resilient infrastructure for
shelter and equity bonds, shall be liable for the [tax increment]
resilient infrastructure for shelter and equity bonds by reason of the
issuance thereof. [Tax increment]
Resilient infrastructure for shelter and equity bonds issued under this
part shall not be general obligations of the State or county, nor in any event
shall they give rise to a charge against the general credit or taxing powers of
the State or county or be payable other than as provided by this part. No holder of bonds issued under this part
shall have the right to compel any exercise of the taxing power of the State or
county to pay such bonds or the interest thereon, and no moneys other than the
moneys in the [tax increment] resilient infrastructure for shelter
and equity fund pledged to the bonds shall be applied to the payment
thereof. [Tax increment] Resilient
infrastructure for shelter and equity bonds issued under this part shall
state these restrictions on their face.
(j) The [tax increment] resilient
infrastructure for shelter and equity bonds bearing the signature or
facsimile signature of officers in office on the date of the signing thereof
shall be valid and sufficient for all purposes, notwithstanding that before [the]
delivery [thereof] and payment [therefor], any or all
persons whose signatures appear thereon shall have ceased to be officers of the
county.
(k) [Tax increment] Resilient
infrastructure for shelter and equity bonds shall not be issued in an
amount exceeding the total costs of implementing the [tax increment] resilient
infrastructure for shelter and equity financing plan for which they were
issued."
SECTION 5. Section 46-110, Hawaii Revised Statutes, is amended to read as follows:
"§46-110
[Tax increment] Resilient infrastructure for shelter and equity fund. (a)
Money shall be disbursed from the [tax increment] resilient
infrastructure for shelter and equity fund for a [tax increment] resilient
infrastructure for shelter and equity district only to satisfy the claims
of holders of [tax increment] resilient infrastructure for shelter
and equity bonds issued for the [tax increment] resilient infrastructure
for shelter and equity district or to pay project costs for the district,
or to make payments to the county as provided by subsection (c).
(b) Subject to an agreement with the holders of [tax
increment] resilient infrastructure for shelter and equity bonds,
money in a [tax increment] resilient infrastructure for shelter and
equity fund may be temporarily invested in the same manner as other funds
of the county.
(c) In any year in which the tax increment
exceeds the amount necessary to pay all project costs [and], all
installments of principal and interest of [tax increment] resilient
infrastructure for shelter and equity bonds issued for a [tax increment]
resilient infrastructure for shelter and equity district falling due,
the funding or replenishment of any reserves securing the payment of any resilient
infrastructure for shelter and equity bonds, and the amount paid to the
county general fund pursuant to section 46-105(b)(2)(B), and subject to any
agreement with bondholders, any excess money in the fund at the option of the
county council, shall be used to redeem or purchase any outstanding [tax
increment] resilient infrastructure for shelter and equity bonds
issued for the district, discharge the pledge of tax increment therefor, be
paid into an escrow account dedicated to the payment of [such] the
bonds, be paid over to the county general fund, or any combination
thereof."
SECTION 6. Sections 46-101, 46-103, 46-107, 46-108, 46‑109, 46-111, and 46-112, Hawaii Revised Statutes, are amended by substituting the term "resilient infrastructure for shelter and equity", or similar term, wherever the term "tax increment", or similar term, appears as the context requires.
PART II
SECTION 7. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance
committee" [shall mean] means the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.
"Corporation counsel" [shall
mean] means the chief legal advisor or legal representative of the
county.
"County" [shall include]
includes each county of the State, including the city and county of
Honolulu.
"Director of finance" [shall
mean] means the director of finance of the county, or if the county
does not have a director of finance, the officer of the county in whom is
vested the functions and powers of maintaining the treasury of the county and
issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" [shall
mean] means the fiscal year of the county as defined in section
46-41.
"Special assessment bonds"
[shall mean] means bonds issued under special improvement
statutes when the only security for [such] the bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.
As used in sections 47C-1 through
47C-6, the words or terms "bonds", "general obligation
bonds", "resilient infrastructure for shelter and equity bonds",
"net revenue", "net user tax receipts", "reimbursable
general obligation bonds", "revenue bonds", "special
purpose revenue bonds", and "user tax" shall have the respective
meanings and inclusions given to [such] those words and terms in [section
12 of article VII of the constitution.] article VII, section 12, of the
Hawaii State Constitution."
SECTION 8. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2 Determination of funded
debt. Within ninety days after the
first day of each fiscal year, the director of finance of each county shall
ascertain and set forth in a tabular summary the total indebtedness of the
county outstanding and unpaid as of the first day of [such] that fiscal
year. The summary shall include the
following:
(1) An itemization of
the total principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, special
purpose revenue bonds, resilient infrastructure for shelter and equity
bonds, and all other bonds of the county outstanding and unpaid, including
bonds [which] that may be excluded under clauses 1, 2, 3, 4, 5,
6, 8, [and] 9, and 10 of [section 13 of article VII of the
constitution] article VII, section 13, of the Hawaii State Constitution
when determining the funded debt of the county for the purposes of that section
together with a grand total of [such] the total principal amounts[.];
(2) The total
principal amount of all bonds of the State required by clause [(7)] 7
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution to be included when
determining the funded debt of the county for the purposes of that section[.];
(3) A grand total of
the total principal amounts set forth in the summary pursuant to paragraphs (1)
and (2)[.];
(4) An itemization of
the total of the principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, [and]
special purpose revenue bonds, and resilient infrastructure for shelter and
equity bonds of the county outstanding and unpaid [which] that
may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9, and 10
of [section 13 of article VII of the
constitution] article VII, section 13, of the Hawaii State Constitution
when determining the total funded debt of the county for the purposes of that
section, together with a grand total of [such] the total
principal amounts[.]; and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The director of finance shall also
prepare and attach to the tabular summary [such] the supporting
schedules as may be required to set forth in detail the bonds included in the
itemizations required by paragraphs (1) and (4). [Such] The supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 9. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3 Supplemental
determination. Whenever the county
proposes to issue bonds, the director of finance shall prepare a supplemental
summary of the indebtedness of the county setting forth [therein such] the
information and findings as of a date within thirty days of the delivery of [such]
the bonds as will bring up to date and make current the most recent
summary prepared in accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such] the
supporting schedules [as] that may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [such] the legal and financial
findings [as] that will justify any changes in the itemizations
set forth in [such] the previous summary pursuant to the
requirements of [paragraph (4) of section 47C-2.] section 47C-2(4).
If all the bonds proposed to be issued
may be excluded when determining the funded debt of the county for the purposes
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution by reason of the provisions of
clauses 2 [or], 4, or 10 of that section, the supplemental
summary and supporting schedules may be limited to [such] those bonds
and findings as are necessary to justify [such] the exclusion
under [such] those clauses.
In the event proceeds of the bonds
proposed to be issued are to be applied to the retirement in the then fiscal
year of outstanding bonds, including notes issued in anticipation of the
issuance of the bonds proposed to be issued, for the purpose of applying the
provisions of clause 1 of [section 13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution to the bonds
to be retired, that amount of [such] the proceeds to be [so]
applied may be considered and treated as moneys irrevocably set aside for the
payment of [such] the bonds."
PART III
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect upon its approval and upon ratification of a constitutional amendment expressly providing that the legislature may authorize the counties to issue resilient infrastructure for shelter and equity bonds and excluding resilient infrastructure for shelter and equity bonds from determinations of the funded debt of the counties.
Report Title:
Resilient Infrastructure for Shelter and Equity Bonds; Counties; County Debt Limit Statements; Transit-Oriented Development Zone
Description:
Part I: Substitutes the word "tax increment" with "resilient infrastructure for shelter and equity" for purposes of the Resilient Infrastructure for Shelter and Equity Act, except under certain circumstances. Part II: Conforms state law concerning county debt limits to permit counties to exclude resilient infrastructure for shelter and equity bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of resilient infrastructure for shelter and equity bonds and excluding resilient infrastructure for shelter and equity bonds from determinations of the counties' funded debt is ratified. (CD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
3218 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 2 |
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A BILL FOR AN ACT
RELATING TO BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 46-102, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Resilient infrastructure for shelter and equity bonds" has the same meaning as in article VII, section 12, of the Hawaii State Constitution that are issued pursuant to this part."
2. By amending the definitions of "adjustment rate", "assessment base", and "assessment increment" to read:
""Adjustment rate"
means a percentage rate or rates of adjustment of the assessment base
determined by the director of finance at the time the [tax increment] resilient
infrastructure for shelter and equity district is established, based on the
historical and projected increases to the assessed values of taxable real
property within the boundary of the [tax increment] resilient
infrastructure for shelter and equity district and the projected cost
increases to the county for servicing the new developments within the [tax
increment] resilient infrastructure for shelter and equity
district."
"Assessment base" means
the total assessed values of all taxable real property in a [tax increment]
resilient infrastructure for shelter and equity district as most
recently certified by the director of finance on the date of creation of the [tax
increment] resilient infrastructure for shelter and equity district.
"Assessment increment"
means the amount by which the current assessed values of taxable real property
located within the boundaries of a [tax increment] resilient
infrastructure for shelter and equity district exceeds its assessment
base."
3. By amending the definitions of "council" and "county" to read:
""Council" means the
council of the county in which a [tax increment] resilient
infrastructure for shelter and equity district is situated.
"County" has the same
meaning as [set forth] in section 1-22 and means the county in which a [tax
increment] resilient infrastructure for shelter and equity district
is situated."
4. By amending the definition of "project costs" to read:
""Project costs"
means expenditures made or estimated to be made or monetary obligations
incurred or estimated to be incurred by the agency that are listed in a [tax
increment] resilient infrastructure for shelter and equity financing
plan as costs of public works or public improvements in a [tax increment]
resilient infrastructure for shelter and equity district, plus other
costs incidental to the expenditures or obligations. Project costs include:
(1) Capital costs, including the actual costs of the construction of public works or public improvements, new buildings, structures, and fixtures; the actual costs of the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; and the actual costs of the acquisition, clearing, and grading of land;
(2) Financing costs,
including[, but not limited to,] all necessary and incidental expenses
related to the issuance of [tax increment] resilient infrastructure
for shelter and equity bonds and all interest paid to holders of evidences
of indebtedness or other obligations issued to pay for project costs, any
capitalized interest, the funding or replenishment of any reserves securing
the payment of the resilient infrastructure for shelter and equity bonds,
and any premium paid over the principal amount of the obligations because of
the redemption of the obligations prior to maturity;
(3) Professional service costs, including architectural, planning, engineering, marketing, appraisal, financial consultant, and special services and legal advice;
(4) Imputed
administrative costs, including reasonable charges for the time spent by
employees of the agency in connection with the implementation of a [tax
increment] resilient infrastructure for shelter and equity financing
plan;
(5) Relocation costs to the extent required by federal or state law;
(6) Organizational
costs, including the costs of conducting environmental impact studies or other
studies, the costs of publicizing the creation of a [tax increment] resilient
infrastructure for shelter and equity district, and the cost of
implementing the [tax increment] resilient infrastructure for shelter
and equity financing plan for the [tax increment] resilient
infrastructure for shelter and equity district; and
(7) Payments
determined by the county council to be necessary or convenient to the creation
of a [tax increment] resilient infrastructure for shelter and equity
district or to the implementation of the [tax increment] resilient
infrastructure for shelter and equity financing plan for the [tax
increment] resilient infrastructure for shelter and equity district."
5. By amending the definitions of "tax increment district", "tax increment financing plan", and "tax increment fund" to read:
"["Tax increment] "Resilient
infrastructure for shelter and equity district" or
"district" means a contiguous or noncontiguous geographic area
designated pursuant to section 46-103 by the county council for the purpose of [tax
increment] resilient infrastructure for shelter and equity
financing.
["Tax increment] "Resilient
infrastructure for shelter and equity financing plan" means the plan
for [tax increment] resilient infrastructure for shelter and equity
financing for a [tax increment] resilient infrastructure for shelter
and equity district submitted to the county council. The [tax increment] resilient
infrastructure for shelter and equity financing plan shall contain
estimates of: [project]
(1) Project
costs; [amount]
(2) The amount
of [tax increment] resilient infrastructure for shelter and equity
bonds to be issued; [sources]
(3) Sources of
revenue to finance or otherwise pay project costs; [the]
(4) The most
recent assessed value of taxable real property in the district; [the]
(5) The
duration of the district's existence; and [statements]
(6) Statements
from the county's department of finance, and the county's department of budget,
if applicable, regarding the financial and budgetary impacts on the county
resulting from the proposed [tax increment] resilient infrastructure
for shelter and equity financing plan.
["Tax increment] "Resilient
infrastructure for shelter and equity fund" means a fund [which
shall be] held by the director of finance or other fiduciary designated by
the county council and into which all tax increments and other moneys pledged
by the county for payment of [tax increment] resilient infrastructure
for shelter and equity bonds are paid, and all proceeds from the sale of [tax
increment] resilient infrastructure for shelter and equity bonds are
deposited, and from which moneys are disbursed to pay project costs for the [tax
increment] resilient infrastructure for shelter and equity district
or to satisfy claims of holders of [tax increment] resilient
infrastructure for shelter and equity bonds issued for the district."
6. By repealing the definition of "tax increment bonds".
[""Tax increment
bonds" mean bonds, notes, interim certificates, debentures, or other
obligations issued pursuant to this part."]
SECTION 2. Section 46-104, Hawaii Revised Statutes, is amended to read as follows:
"§46-104
County powers. A county may
exercise any power necessary and convenient to establish [tax increment]
resilient infrastructure for shelter and equity districts, including the
power to:
(1) Create [tax increment] resilient
infrastructure for shelter and equity districts and determine the
boundaries of the districts;
(2) Issue [tax increment] resilient
infrastructure for shelter and equity bonds;
(3) Deposit tax increments into the [tax
increment] resilient infrastructure for shelter and equity fund
created for a [tax increment] resilient infrastructure for shelter
and equity district; and
(4) Enter into agreements, including agreements
with [the] any redevelopment agency and owners or developers of
project lands and bondholders, determined to be necessary or convenient to
implement redevelopment plans or community development plans, as the case may
be, and achieve their purposes."
SECTION 3. Section 46-105, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) If a county exercises the power allowed under
this part, then commencing with the first payment of real property taxes levied
by the county subsequent to the time a [tax increment] district takes
effect, receipts from real property taxes shall be allocated and paid over as
follows:
(1) The amount of real property tax produced from the assessment base shall be paid to the county general fund; and
(2) The tax increments produced from the
assessment increment in the [tax increment] resilient infrastructure
for shelter and equity district shall be applied as follows:
(A) First, an amount equal to the installment of
(i) principal and interest falling due of any [tax increment] resilient
infrastructure for shelter and equity bonds, or (ii) any project cost
approved by the county, shall be deposited into the [tax increment] resilient
infrastructure for shelter and equity fund established for the [tax
increment] resilient infrastructure for shelter and equity district[.];
(B) Second, an amount equal to the adjustment rate
times the amount of real property tax produced from the assessment base shall
be computed and paid to the county general fund[.]; and
(C) Third, the remaining amount of tax increments,
if any, shall be deposited into the [tax increment] resilient
infrastructure for shelter and equity fund established for the [tax
increment] resilient infrastructure for shelter and equity district."
SECTION 4. Section 46-106, Hawaii Revised Statutes, is amended to read as follows:
"§46-106
[Tax increment] Resilient
infrastructure for shelter and equity bonds. (a) A
county may issue [tax increment] resilient infrastructure for shelter
and equity bonds, the proceeds of which may be used to pay project costs
for a [tax increment] resilient infrastructure for shelter and equity
district or to satisfy claims of bondholders.
The county may issue refunding bonds [previously issued by the county]
for the purpose of paying or retiring resilient infrastructure for shelter
and equity bonds previously issued by the county, or in exchange for [tax
increment] resilient infrastructure for shelter and equity bonds
previously issued by the county.
Principal and interest on [tax increment] resilient
infrastructure for shelter and equity bonds shall be made payable, as to
both principal and interest, solely from the [tax increment] resilient
infrastructure for shelter and equity fund established for the [tax
increment] resilient infrastructure for shelter and equity district.
A county
may provide in its contract with the owners or holders of the [tax increment]
resilient infrastructure for shelter and equity bonds that the county
will pay into the [tax increment] resilient infrastructure for
shelter and equity fund all or any part of the revenue or money produced or
received as a result of the operation or sale of a facility acquired, improved,
or constructed pursuant to a redevelopment plan or community development plan,
as the case may be, to be used to pay principal and interest on the [tax
increment] resilient infrastructure for shelter and equity bonds
and, if a county so agrees, the owners or holders of the [tax increment]
resilient infrastructure for shelter and equity bonds may have a lien or
mortgage on any facility acquired, improved, or constructed with the proceeds
of the [tax increment] resilient infrastructure for shelter and
equity bonds.
(b) [Tax increment] Resilient
infrastructure for shelter and equity bonds, and the income therefrom,
issued pursuant to this part shall be exempt from all state and county
taxation, except estate and transfer taxes.
The bonds
shall be authorized by ordinance and may be issued in one or more series. The [tax increment] resilient
infrastructure for shelter and equity bonds of each issue shall be dated,
be payable upon demand or mature at a time or times not exceeding thirty years
from their date of issuance, bear interest at a rate or rates, be in a
denomination or denominations, be in registered form, have a rank or priority,
be executed in a manner, be payable in a medium of payment at a place or
places, and be subject to terms of redemption (with or without premium), be
secured in a manner, and have other characteristics as may be provided by the
ordinance providing for issuance of the bonds or by the trust indenture or
mortgage issued in connection with the bonds.
The county may sell [tax increment] resilient infrastructure
for shelter and equity bonds in such manner, either at public or private
sale, and for such price as it may determine.
(c) Prior to the preparation of definitive [tax
increment] resilient infrastructure for shelter and equity bonds,
the county may issue interim receipts or temporary bonds exchangeable for
definitive bonds when such bonds have been executed and are available for
delivery.
(d) Should any bond issued under this part become mutilated or be lost, stolen, or destroyed, the county may cause a new bond of like date, number, and tenor to be executed and delivered in exchange and substitution for, and upon the cancellation of such mutilated bond, or in lieu of and in substitution for such lost, stolen, or destroyed bond. Such new bond shall not be executed or delivered until the holder of the mutilated, lost, stolen, or destroyed bond:
(1) Has paid reasonable expenses and charges in connection therewith;
(2) In the case of a lost, stolen, or destroyed bond, has filed with the county or its fiduciary satisfactory evidence that such bond was lost, stolen, or destroyed, and that the holder was owner thereof; and
(3) Has furnished indemnity satisfactory to the county.
(e) Notwithstanding any of the provisions of this
part or any recital in any [tax increment] resilient infrastructure
for shelter and equity bond issued under this part, all [tax increment]
resilient infrastructure for shelter and equity bonds shall be deemed to
be investment securities under the Uniform Commercial Code, chapter 490,
subject only to the provisions pertaining to registration.
(f) In any suit, action, or other proceeding
involving the validity or enforceability of a bond issued under this part or
the security for a bond or note issued under this part, a bond reciting in
substance that it had been issued by the county for a [tax increment] resilient
infrastructure for shelter and equity district shall be conclusively deemed
to have been issued for that purpose, and the development or redevelopment of
the district conclusively shall be deemed to have been planned, located, and
carried out as provided by this part.
(g) All banks, trust companies, savings banks and
institutions, building and loan associations, savings and loan associations,
investment companies, and other persons carrying on a banking or investment
business; all insurance companies, insurance associations, and other persons
carrying on an insurance business; and all personal representatives,
administrators, curators, trustees, and other fiduciaries legally may invest
sinking funds, money, or other funds belonging to them or within their control
in [tax increment] resilient infrastructure for shelter and equity
bonds issued by a county pursuant to this part.
The bonds shall be authorized security for all public deposits. Any person, political subdivision, and
officer, public or private, are authorized to use funds owned or controlled by
them for the purchase of [tax increment] resilient infrastructure for
shelter and equity bonds. This part
does not relieve any person of the duty to exercise reasonable care in
selecting securities.
(h) [Tax increment] Resilient
infrastructure for shelter and equity bonds shall be payable only out of
the [tax increment] resilient infrastructure for shelter and equity
fund. The county council may pledge
irrevocably all or a part of the fund for payment of the bonds. The part of the fund pledged in payment
thereafter shall be used only for the payment of the bonds or interest or
redemption premium, if any, on the bonds until the bonds have been fully
paid. A holder of the bonds shall have a
lien against the fund for payment of the bonds and interest thereon and may
either at law or in equity protect and enforce such lien.
(i) No officer of the county, including
any officer executing [tax increment] resilient infrastructure for
shelter and equity bonds, shall be liable for the [tax increment]
resilient infrastructure for shelter and equity bonds by reason of the
issuance thereof. [Tax increment]
Resilient infrastructure for shelter and equity bonds issued under this
part shall not be general obligations of the State or county, nor in any event
shall they give rise to a charge against the general credit or taxing powers of
the State or county or be payable other than as provided by this part. No holder of bonds issued under this part
shall have the right to compel any exercise of the taxing power of the State or
county to pay such bonds or the interest thereon, and no moneys other than the
moneys in the [tax increment] resilient infrastructure for shelter
and equity fund pledged to the bonds shall be applied to the payment
thereof. [Tax increment] Resilient
infrastructure for shelter and equity bonds issued under this part shall
state these restrictions on their face.
(j) The [tax increment] resilient
infrastructure for shelter and equity bonds bearing the signature or
facsimile signature of officers in office on the date of the signing thereof
shall be valid and sufficient for all purposes, notwithstanding that before [the]
delivery [thereof] and payment [therefor], any or all
persons whose signatures appear thereon shall have ceased to be officers of the
county.
(k) [Tax increment] Resilient
infrastructure for shelter and equity bonds shall not be issued in an
amount exceeding the total costs of implementing the [tax increment] resilient
infrastructure for shelter and equity financing plan for which they were
issued."
SECTION 5. Section 46-110, Hawaii Revised Statutes, is amended to read as follows:
"§46-110
[Tax increment] Resilient infrastructure for shelter and equity fund. (a)
Money shall be disbursed from the [tax increment] resilient
infrastructure for shelter and equity fund for a [tax increment] resilient
infrastructure for shelter and equity district only to satisfy the claims
of holders of [tax increment] resilient infrastructure for shelter
and equity bonds issued for the [tax increment] resilient
infrastructure for shelter and equity district or to pay project costs for
the district, or to make payments to the county as provided by subsection (c).
(b) Subject to an agreement with the holders of [tax
increment] resilient infrastructure for shelter and equity bonds,
money in a [tax increment] resilient infrastructure for shelter and
equity fund may be temporarily invested in the same manner as other funds
of the county.
(c) In any year in which the tax increment
exceeds the amount necessary to pay all project costs [and], all
installments of principal and interest of [tax increment] resilient
infrastructure for shelter and equity bonds issued for a [tax increment]
resilient infrastructure for shelter and equity district falling due,
the funding or replenishment of any reserves securing the payment of any resilient
infrastructure for shelter and equity bonds, and the amount paid to the
county general fund pursuant to section 46-105(b)(2)(B), and subject to any
agreement with bondholders, any excess money in the fund at the option of the
county council, shall be used to redeem or purchase any outstanding [tax
increment] resilient infrastructure for shelter and equity bonds
issued for the district, discharge the pledge of tax increment therefor, be
paid into an escrow account dedicated to the payment of [such] the
bonds, be paid over to the county general fund, or any combination
thereof."
SECTION 6. Sections 46-101, 46-103, 46-107, 46-108, 46-109, 46-111, and 46-112, Hawaii Revised Statutes, are amended by substituting the term "resilient infrastructure for shelter and equity", or similar term, wherever the term "tax increment", or similar term, appears as the context requires.
PART II
SECTION 7. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance
committee" [shall mean] means the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.
"Corporation counsel" [shall
mean] means the chief legal advisor or legal representative of the
county.
"County" [shall include]
includes each county of the State, including the city and county of
Honolulu.
"Director of finance" [shall
mean] means the director of finance of the county, or if the county
does not have a director of finance, the officer of the county in whom is
vested the functions and powers of maintaining the treasury of the county and
issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" [shall
mean] means the fiscal year of the county as defined in section
46-41.
"Special assessment bonds"
[shall mean] means bonds issued under special improvement
statutes when the only security for [such] the bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.
As used in sections 47C-1 through
47C-6, the words or terms "bonds", "general obligation
bonds", "resilient infrastructure for shelter and equity bonds",
"net revenue", "net user tax receipts", "reimbursable
general obligation bonds", "revenue bonds", "special
purpose revenue bonds", and "user tax" shall have the respective
meanings and inclusions given to [such] those words and terms in [section
12 of article VII of the constitution.] article VII, section 12, of the
Hawaii State Constitution."
SECTION 8. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2 Determination of funded
debt. Within ninety days after the
first day of each fiscal year, the director of finance of each county shall
ascertain and set forth in a tabular summary the total indebtedness of the
county outstanding and unpaid as of the first day of [such] that fiscal
year. The summary shall include the
following:
(1) An itemization of
the total principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, special
purpose revenue bonds, resilient infrastructure for shelter and equity bonds,
and all other bonds of the county outstanding and unpaid, including bonds [which]
that may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9,
and 10 of [section 13 of article VII of the constitution] article
VII, section 13, of the Hawaii State Constitution when determining the
funded debt of the county for the purposes of that section together with a
grand total of [such] the total principal amounts[.];
(2) The total
principal amount of all bonds of the State required by clause [(7)] 7
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution to be included when
determining the funded debt of the county for the purposes of that section[.];
(3) A grand total of
the total principal amounts set forth in the summary pursuant to paragraphs (1)
and (2)[.];
(4) An itemization of
the total of the principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, [and]
special purpose revenue bonds, and resilient infrastructure for shelter and
equity bonds of the county outstanding and unpaid [which] that
may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9, and 10
of [section 13 of article VII of the
constitution] article VII, section 13, of the Hawaii State Constitution
when determining the total funded debt of the county for the purposes of that
section, together with a grand total of [such] the total
principal amounts[.]; and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The director of finance shall also
prepare and attach to the tabular summary [such] the supporting
schedules as may be required to set forth in detail the bonds included in the
itemizations required by paragraphs (1) and (4). [Such] The supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 9. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3 Supplemental
determination. Whenever the county
proposes to issue bonds, the director of finance shall prepare a supplemental
summary of the indebtedness of the county setting forth [therein such] the
information and findings as of a date within thirty days of the delivery of [such]
the bonds as will bring up to date and make current the most recent
summary prepared in accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such] the
supporting schedules [as] that may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [such] the legal and financial
findings [as] that will justify any changes in the itemizations
set forth in [such] the previous summary pursuant to the
requirements of [paragraph (4) of section 47C-2.] section 47C-2(4).
If all the bonds proposed to be issued
may be excluded when determining the funded debt of the county for the purposes
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution by reason of the provisions of
clauses 2 [or], 4, or 10 of that section, the supplemental
summary and supporting schedules may be limited to [such] those bonds
and findings as are necessary to justify [such] the exclusion
under [such] those clauses.
In the event proceeds of the bonds
proposed to be issued are to be applied to the retirement in the then fiscal
year of outstanding bonds, including notes issued in anticipation of the
issuance of the bonds proposed to be issued, for the purpose of applying the
provisions of clause 1 of [section 13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution to the bonds
to be retired, that amount of [such] the proceeds to be [so]
applied may be considered and treated as moneys irrevocably set aside for the
payment of [such] the bonds."
PART III
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect on July 1, 3000, and upon ratification of a constitutional amendment expressly providing that the legislature may authorize the counties to issue resilient infrastructure for shelter and equity bonds and excluding resilient infrastructure for shelter and equity bonds from determinations of the funded debt of the counties.
Report Title:
Resilient Infrastructure for Shelter and Equity Bonds; Counties; County Debt Limit Statements
Description:
Part I: Substitutes the word "tax increment" with "resilient infrastructure for shelter and equity" for purposes of the Resilient Infrastructure for Shelter and Equity Act, except under certain circumstances. Part II: Conforms state law concerning county debt limits to permit counties to exclude resilient infrastructure for shelter and equity bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of resilient infrastructure for shelter and equity bonds and excluding resilient infrastructure for shelter and equity bonds from determinations of the counties' funded debt is ratified. Effective 7/1/3000. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
3218 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
|
|
STATE OF HAWAII |
H.D. 1 |
|
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|
|
|
|
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||
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A BILL FOR AN ACT
RELATING TO BONDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 46-102, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition to be appropriately inserted and to read:
""Housing infrastructure growth bonds" has the same meaning as in article VII, section 12, of the Hawaii State Constitution that are issued pursuant to this part."
2. By amending the definitions of "adjustment rate", "assessment base", and "assessment increment" to read:
""Adjustment rate"
means a percentage rate or rates of adjustment of the assessment base
determined by the director of finance at the time the [tax increment] housing
infrastructure growth district is established, based on the historical and
projected increases to the assessed values of taxable real property within the
boundary of the [tax increment] housing infrastructure growth
district and the projected cost increases to the county for servicing the new
developments within the [tax increment] housing infrastructure growth
district."
"Assessment base" means
the total assessed values of all taxable real property in a [tax increment]
housing infrastructure growth district as most recently certified by the
director of finance on the date of creation of the [tax increment] housing
infrastructure growth district.
"Assessment increment"
means the amount by which the current assessed values of taxable real property
located within the boundaries of a [tax increment] housing
infrastructure growth district exceeds its assessment base."
3. By amending the definitions of "council" and "county" to read:
""Council" means the
council of the county in which a [tax increment] housing
infrastructure growth district is situated.
"County" has the same
meaning as [set forth] in section 1-22 and means the county in which a [tax
increment] housing infrastructure growth district is situated."
4. By amending the definition of "project costs" to read:
""Project costs"
means expenditures made or estimated to be made or monetary obligations
incurred or estimated to be incurred by the agency that are listed in a [tax
increment] housing infrastructure growth financing plan as costs of
public works or public improvements in a [tax increment] housing
infrastructure growth district, plus other costs incidental to the
expenditures or obligations. Project
costs include:
(1) Capital costs, including the actual costs of the construction of public works or public improvements, new buildings, structures, and fixtures; the actual costs of the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; and the actual costs of the acquisition, clearing, and grading of land;
(2) Financing costs,
including[, but not limited to,] all necessary and incidental expenses
related to the issuance of [tax increment] housing infrastructure
growth bonds and all interest paid to holders of evidences of indebtedness
or other obligations issued to pay for project costs, any capitalized interest,
the funding or replenishment of any reserves securing the payment of the
housing infrastructure growth bonds, and any premium paid over the
principal amount of the obligations because of the redemption of the
obligations prior to maturity;
(3) Professional service costs, including architectural, planning, engineering, marketing, appraisal, financial consultant, and special services and legal advice;
(4) Imputed
administrative costs, including reasonable charges for the time spent by
employees of the agency in connection with the implementation of a [tax
increment] housing infrastructure growth financing plan;
(5) Relocation costs to the extent required by federal or state law;
(6) Organizational
costs, including the costs of conducting environmental impact studies or other
studies, the costs of publicizing the creation of a [tax increment] housing
infrastructure growth district, and the cost of implementing the [tax
increment] housing infrastructure growth financing plan for the [tax
increment] housing infrastructure growth district; and
(7) Payments
determined by the county council to be necessary or convenient to the creation
of a [tax increment] housing infrastructure growth district or to
the implementation of the [tax increment] housing infrastructure
growth financing plan for the [tax increment] housing
infrastructure growth district."
5. By amending the definitions of "tax increment district", "tax increment financing plan", and "tax increment fund" to read:
"["Tax increment] "Housing
infrastructure growth district" or "district" means a
contiguous or noncontiguous geographic area designated pursuant to section
46-103 by the county council for the purpose of [tax increment] housing
infrastructure growth financing.
["Tax increment] "Housing
infrastructure growth financing plan" means the plan for [tax
increment] housing infrastructure growth financing for a [tax
increment] housing infrastructure growth district submitted to the
county council. The [tax increment]
housing infrastructure growth financing plan shall contain estimates
of: [project]
(1) Project
costs; [amount]
(2) The amount
of [tax increment] housing infrastructure growth bonds to be
issued; [sources]
(3) Sources of
revenue to finance or otherwise pay project costs; [the]
(4) The most
recent assessed value of taxable real property in the district; [the]
(5) The
duration of the district's existence; and [statements]
(6) Statements
from the county's department of finance, and the county's department of budget,
if applicable, regarding the financial and budgetary impacts on the county
resulting from the proposed [tax increment] housing infrastructure
growth financing plan.
["Tax increment] "Housing
infrastructure growth fund" means a fund [which shall be] held
by the director of finance or other fiduciary designated by the county council
and into which all tax increments and other moneys pledged by the county for
payment of [tax increment] housing infrastructure growth bonds
are paid, and all proceeds from the sale of [tax increment] housing
infrastructure growth bonds are deposited, and from which moneys are
disbursed to pay project costs for the [tax increment] housing
infrastructure growth district or to satisfy claims of holders of [tax
increment] housing infrastructure growth bonds issued for the
district."
6. By repealing the definition of "tax increment bond".
[""Tax increment
bonds" mean bonds, notes, interim certificates, debentures, or other
obligations issued pursuant to this part."]
SECTION 2. Section 46-104, Hawaii Revised Statutes, is amended to read as follows:
"§46-104
County powers. A county may
exercise any power necessary and convenient to establish [tax increment]
housing infrastructure growth districts, including the power to:
(1) Create [tax increment] housing
infrastructure growth districts and determine the boundaries of the
districts;
(2) Issue [tax increment] housing
infrastructure growth bonds;
(3) Deposit tax increments into the [tax
increment] housing infrastructure growth fund created for a [tax
increment] housing infrastructure growth district; and
(4) Enter into agreements, including agreements
with [the] any redevelopment agency and owners or developers of
project lands and bondholders, determined to be necessary or convenient to
implement redevelopment plans or community development plans, as the case may
be, and achieve their purposes."
SECTION 3. Section 46-105, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) If a county exercises the power allowed under
this part, then commencing with the first payment of real property taxes levied
by the county subsequent to the time a [tax increment] district takes
effect, receipts from real property taxes shall be allocated and paid over as
follows:
(1) The amount of real property tax produced from the assessment base shall be paid to the county general fund; and
(2) The tax increments produced from the
assessment increment in the [tax increment] housing infrastructure
growth district shall be applied as follows:
(A) First, an amount equal to the installment of
(i) principal and interest falling due of any [tax increment] housing
infrastructure growth bonds, or (ii) any project cost approved by the
county, shall be deposited into the [tax increment] housing
infrastructure growth fund established for the [tax increment] housing
infrastructure growth district[.];
(B) Second, an amount equal to the adjustment rate
times the amount of real property tax produced from the assessment base shall
be computed and paid to the county general fund[.]; and
(C) Third, the remaining amount of tax increments,
if any, shall be deposited into the [tax increment] housing
infrastructure growth fund established for the [tax increment] housing
infrastructure growth district."
SECTION 4. Section 46-106, Hawaii Revised Statutes, is amended to read as follows:
"§46-106
[Tax increment] Housing infrastructure growth bonds. (a) A
county may issue [tax increment] housing infrastructure growth
bonds, the proceeds of which may be used to pay project costs for a [tax
increment] housing infrastructure growth district or to satisfy
claims of bondholders. The county may
issue refunding bonds [previously issued by the county] for the purpose
of paying or retiring housing infrastructure growth bonds previously issued
by the county, or in exchange for [tax increment] housing
infrastructure growth bonds previously issued by the county. Principal and interest on [tax increment]
housing infrastructure growth bonds shall be made payable, as to both
principal and interest, solely from the [tax increment] housing
infrastructure growth fund established for the [tax increment] housing
infrastructure growth district.
A county
may provide in its contract with the owners or holders of the [tax increment]
housing infrastructure growth bonds that the county will pay into the [tax
increment] housing infrastructure growth fund all or any part of the
revenue or money produced or received as a result of the operation or sale of a
facility acquired, improved, or constructed pursuant to a redevelopment plan or
community development plan, as the case may be, to be used to pay principal and
interest on the [tax increment] housing infrastructure growth
bonds and, if a county so agrees, the owners or holders of the [tax
increment] housing infrastructure growth bonds may have a lien or
mortgage on any facility acquired, improved, or constructed with the proceeds
of the [tax increment] housing infrastructure growth bonds.
(b) [Tax increment] Housing
infrastructure growth bonds, and the income therefrom, issued pursuant to
this part shall be exempt from all state and county taxation, except estate and
transfer taxes.
The bonds
shall be authorized by ordinance and may be issued in one or more series. The [tax increment] housing
infrastructure growth bonds of each issue shall be dated, be payable upon
demand or mature at a time or times not exceeding thirty years from their date
of issuance, bear interest at a rate or rates, be in a denomination or
denominations, be in registered form, have a rank or priority, be executed in a
manner, be payable in a medium of payment at a place or places, and be subject
to terms of redemption (with or without premium), be secured in a manner, and
have other characteristics as may be provided by the ordinance providing for
issuance of the bonds or by the trust indenture or mortgage issued in
connection with the bonds. The county
may sell [tax increment] housing infrastructure growth bonds in
such manner, either at public or private sale, and for such price as it may
determine.
(c) Prior to the preparation of definitive [tax
increment] housing infrastructure growth bonds, the county may issue
interim receipts or temporary bonds exchangeable for definitive bonds when such
bonds have been executed and are available for delivery.
(d) Should any bond issued under this part become mutilated or be lost, stolen, or destroyed, the county may cause a new bond of like date, number, and tenor to be executed and delivered in exchange and substitution for, and upon the cancellation of such mutilated bond, or in lieu of and in substitution for such lost, stolen, or destroyed bond. Such new bond shall not be executed or delivered until the holder of the mutilated, lost, stolen, or destroyed bond:
(1) Has paid reasonable expenses and charges in connection therewith;
(2) In the case of a lost, stolen, or destroyed bond, has filed with the county or its fiduciary satisfactory evidence that such bond was lost, stolen, or destroyed, and that the holder was owner thereof; and
(3) Has furnished indemnity satisfactory to the county.
(e) Notwithstanding any of the provisions of this
part or any recital in any [tax increment] housing infrastructure
growth bond issued under this part, all [tax increment] housing
infrastructure growth bonds shall be deemed to be investment securities
under the Uniform Commercial Code, chapter 490, subject only to the provisions
pertaining to registration.
(f) In any suit, action, or other proceeding
involving the validity or enforceability of a bond issued under this part or
the security for a bond or note issued under this part, a bond reciting in
substance that it had been issued by the county for a [tax increment] housing
infrastructure growth district shall be conclusively deemed to have been
issued for that purpose, and the development or redevelopment of the district
conclusively shall be deemed to have been planned, located, and carried out as
provided by this part.
(g) All banks, trust companies, savings banks and
institutions, building and loan associations, savings and loan associations,
investment companies, and other persons carrying on a banking or investment
business; all insurance companies, insurance associations, and other persons
carrying on an insurance business; and all personal representatives,
administrators, curators, trustees, and other fiduciaries legally may invest
sinking funds, money, or other funds belonging to them or within their control
in [tax increment] housing infrastructure growth bonds issued by
a county pursuant to this part. The
bonds shall be authorized security for all public deposits. Any person, political subdivision, and
officer, public or private, are authorized to use funds owned or controlled by
them for the purchase of [tax increment] housing infrastructure
growth bonds. This part does not
relieve any person of the duty to exercise reasonable care in selecting
securities.
(h) [Tax increment] Housing
infrastructure growth bonds shall be payable only out of the [tax
increment] housing infrastructure growth fund. The county council may pledge irrevocably all
or a part of the fund for payment of the bonds.
The part of the fund pledged in payment thereafter shall be used only
for the payment of the bonds or interest or redemption premium, if any, on the
bonds until the bonds have been fully paid.
A holder of the bonds shall have a lien against the fund for payment of
the bonds and interest thereon and may either at law or in equity protect and
enforce such lien.
(i) No officer of the county, including
any officer executing [tax increment] housing infrastructure growth
bonds, shall be liable for the [tax increment] housing
infrastructure growth bonds by reason of the issuance thereof. [Tax increment] Housing
infrastructure growth bonds issued under this part shall not be general
obligations of the State or county, nor in any event shall they give rise to a
charge against the general credit or taxing powers of the State or county or be
payable other than as provided by this part.
No holder of bonds issued under this part shall have the right to compel
any exercise of the taxing power of the State or county to pay such bonds or
the interest thereon, and no moneys other than the moneys in the [tax
increment] housing infrastructure growth fund pledged to the bonds
shall be applied to the payment thereof.
[Tax increment] Housing infrastructure growth bonds issued
under this part shall state these restrictions on their face.
(j) The [tax increment] housing
infrastructure growth bonds bearing the signature or facsimile signature of
officers in office on the date of the signing thereof shall be valid and
sufficient for all purposes, notwithstanding that before [the] delivery [thereof]
and payment [therefor], any or all persons whose signatures
appear thereon shall have ceased to be officers of the county.
(k) [Tax increment] Housing
infrastructure growth bonds shall not be issued in an amount exceeding the
total costs of implementing the [tax increment] housing
infrastructure growth financing plan for which they were issued."
SECTION 5. Section 46-110, Hawaii Revised Statutes, is amended to read as follows:
"§46-110
[Tax increment] Housing infrastructure growth
fund. (a) Money shall be disbursed from the [tax
increment] housing infrastructure growth fund for a [tax
increment] housing infrastructure growth district only to satisfy
the claims of holders of [tax increment] housing infrastructure
growth bonds issued for the [tax increment] housing
infrastructure growth district or to pay project costs for the district, or
to make payments to the county as provided by subsection (c).
(b) Subject to an agreement with the holders of [tax
increment] housing infrastructure growth bonds, money in a [tax
increment] housing infrastructure growth fund may be temporarily
invested in the same manner as other funds of the county.
(c) In any year in which the tax increment
exceeds the amount necessary to pay all project costs and all installments of
principal and interest of [tax increment] housing infrastructure
growth bonds issued for a [tax increment] housing infrastructure
growth district falling due, the funding or replenishment of any
reserves securing the payment of any housing infrastructure growth bonds,
and the amount paid to the county general fund pursuant to section
46-105(b)(2)(B), and subject to any agreement with bondholders, any excess
money in the fund at the option of the county council, shall be used to redeem
or purchase any outstanding [tax increment] housing infrastructure
growth bonds issued for the district, discharge the pledge of tax increment
therefor, be paid into an escrow account dedicated to the payment of [such]
the bonds, be paid over to the county general fund, or any combination
thereof."
SECTION 6. Sections 46-101, 46-103, 46-107, 46-108, 46-109, 46-111, and 46-112, Hawaii Revised Statutes, are amended by substituting the term "housing infrastructure growth", or similar term, wherever the term "tax increment", or similar term, appears as the context requires.
PART II
SECTION 7. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance
committee" [shall mean] means the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.
"Corporation counsel" [shall
mean] means the chief legal advisor or legal representative of the
county.
"County" [shall include]
includes each county of the State, including the city and county of
Honolulu.
"Director of finance" [shall
mean] means the director of finance of the county, or if the county
does not have a director of finance, the officer of the county in whom is
vested the functions and powers of maintaining the treasury of the county and
issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" [shall
mean] means the fiscal year of the county as defined in section
46-41.
"Special assessment bonds"
[shall mean] means bonds issued under special improvement
statutes when the only security for [such] the bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.
As used in sections 47C-1 through
47C-6, the words or terms "bonds", "general obligation
bonds", "housing infrastructure growth bonds", "net
revenue", "net user tax receipts", "reimbursable general
obligation bonds", "revenue bonds", "special purpose
revenue bonds", and "user tax" shall have the respective
meanings and inclusions given to [such] those words and terms in [section
12 of article VII of the constitution.] article VII, section 12, of the
Hawaii State Constitution."
SECTION 8. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2 Determination of funded
debt. Within ninety days after the
first day of each fiscal year, the director of finance of each county shall
ascertain and set forth in a tabular summary the total indebtedness of the
county outstanding and unpaid as of the first day of [such] that fiscal
year. The summary shall include the
following:
(1) An itemization of
the total principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, special
purpose revenue bonds, housing infrastructure growth bonds, and all
other bonds of the county outstanding and unpaid, including bonds [which]
that may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9,
and 10 of [section 13 of article VII of the constitution] article
VII, section 13, of the Hawaii State Constitution when determining the funded
debt of the county for the purposes of that section together with a grand total
of [such] the total principal amounts[.];
(2) The total
principal amount of all bonds of the State required by clause [(7)] 7
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution to be included when
determining the funded debt of the county for the purposes of that section[.];
(3) A grand total of
the total principal amounts set forth in the summary pursuant to paragraphs (1)
and (2)[.];
(4) An itemization of
the total of the principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, [and]
special purpose revenue bonds, and housing infrastructure growth bonds
of the county outstanding and unpaid [which] that may be excluded
under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9, and 10 of [section
13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution when
determining the total funded debt of the county for the purposes of that
section, together with a grand total of [such] the total
principal amounts[.]; and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The director of finance shall also
prepare and attach to the tabular summary [such] the supporting
schedules as may be required to set forth in detail the bonds included in the
itemizations required by paragraphs (1) and (4). [Such] The supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 9. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3 Supplemental
determination. Whenever the county
proposes to issue bonds, the director of finance shall prepare a supplemental
summary of the indebtedness of the county setting forth [therein such] the
information and findings as of a date within thirty days of the delivery of [such]
the bonds as will bring up to date and make current the most recent
summary prepared in accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such] the
supporting schedules [as] that may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [such] the legal and financial
findings [as] that will justify any changes in the itemizations
set forth in [such] the previous summary pursuant to the
requirements of [paragraph (4) of section 47C-2.] section 47C-2(4).
If all the bonds proposed to be issued
may be excluded when determining the funded debt of the county for the purposes
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution by reason of the provisions of
clauses 2 [or], 4, or 10 of that section, the supplemental
summary and supporting schedules may be limited to [such] those bonds
and findings as are necessary to justify [such] the exclusion
under [such] those clauses.
In the event proceeds of the bonds
proposed to be issued are to be applied to the retirement in the then fiscal
year of outstanding bonds, including notes issued in anticipation of the
issuance of the bonds proposed to be issued, for the purpose of applying the
provisions of clause 1 of [section 13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution to the bonds
to be retired, that amount of [such] the proceeds to be [so]
applied may be considered and treated as moneys irrevocably set aside for the
payment of [such] the bonds."
PART III
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect on July 1, 3000,
and upon ratification of a constitutional amendment expressly providing that
the legislature may authorize the counties to issue housing infrastructure
growth bonds and excluding housing
infrastructure growth bonds from determinations of the funded debt of the counties.
Report Title:
Housing Infrastructure Growth Bonds; Counties; County Debt Limit Statements
Description:
Part I: Substitutes the word "tax increment" with "housing infrastructure growth" for purposes of the Housing Infrastructure Growth Financing Act, except under certain circumstances. Part II: Conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified. 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.
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THE SENATE |
S.B. NO. |
3218 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 2 |
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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. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance
committee" [shall mean] means the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.
"Corporation counsel" [shall
mean] means the chief legal advisor or legal representative of the
county.
"County" [shall include]
includes each county of the State, including the city and county of
Honolulu.
"Director of finance" [shall
mean] means the director of finance of the county, or if the county
does not have a director of finance, the officer of the county in whom is
vested the functions and powers of maintaining the treasury of the county and
issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" [shall
mean] means the fiscal year of the county as defined in section
46-41.
"Special assessment bonds"
[shall mean] means bonds issued under special improvement
statutes when the only security for [such] the bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.
As used in sections 47C-1 through
47C-6, the words or terms "bonds", "general obligation
bonds", "housing infrastructure growth bonds", "net
revenue", "net user tax receipts", "reimbursable general
obligation bonds", "revenue bonds", "special purpose
revenue bonds", and "user tax" shall have the respective
meanings and inclusions given to [such] those words and terms in [section
12 of article VII of the constitution.] article VII, section 12, of the
Hawaii State Constitution."
SECTION 2. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2 Determination of funded
debt. Within ninety days after the
first day of each fiscal year, the director of finance of each county shall
ascertain and set forth in a tabular summary the total indebtedness of the
county outstanding and unpaid as of the first day of [such] that fiscal
year. The summary shall include the
following:
(1) An itemization of
the total principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, special
purpose revenue bonds, housing infrastructure growth bonds, and all
other bonds of the county outstanding and unpaid, including bonds [which]
that may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9,
and 10 of [section 13 of article VII of the constitution] article
VII, section 13, of the Hawaii State Constitution when determining the
funded debt of the county for the purposes of that section together with a
grand total of [such] the total principal amounts[.];
(2) The total
principal amount of all bonds of the State required by clause [(7)] 7
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution to be included when
determining the funded debt of the county for the purposes of that section[.];
(3) A grand total of
the total principal amounts set forth in the summary pursuant to paragraphs (1)
and (2)[.];
(4) An itemization of
the total of the principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, [and]
special purpose revenue bonds, and housing infrastructure growth bonds
of the county outstanding and unpaid [which] that may be excluded
under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9, and 10 of [section
13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution when
determining the total funded debt of the county for the purposes of that
section, together with a grand total of [such] the total
principal amounts[.]; and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The director of finance shall also
prepare and attach to the tabular summary [such] the supporting
schedules as may be required to set forth in detail the bonds included in the
itemizations required by paragraphs (1) and (4). [Such] The supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 3. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3 Supplemental
determination. Whenever the county
proposes to issue bonds, the director of finance shall prepare a supplemental
summary of the indebtedness of the county setting forth [therein such] the
information and findings as of a date within thirty days of the delivery of [such]
the bonds as will bring up to date and make current the most recent
summary prepared in accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such] the
supporting schedules [as] that may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [such] the legal and financial
findings [as] that will justify any changes in the itemizations
set forth in [such] the previous summary pursuant to the
requirements of [paragraph (4) of section 47C-2.] section 47C-2(4).
If all the bonds proposed to be issued
may be excluded when determining the funded debt of the county for the purposes
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution by reason of the provisions of
clauses 2 [or], 4, or 10 of that section, the supplemental
summary and supporting schedules may be limited to [such] those bonds
and findings as are necessary to justify [such] the exclusion
under [such] those clauses.
In the event proceeds of the bonds
proposed to be issued are to be applied to the retirement in the then fiscal
year of outstanding bonds, including notes issued in anticipation of the
issuance of the bonds proposed to be issued, for the purpose of applying the
provisions of clause 1 of [section 13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution to the bonds
to be retired, that amount of [such] the proceeds to be [so]
applied may be considered and treated as moneys irrevocably set aside for the
payment of [such] the bonds."
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, 2050, and upon ratification of a constitutional amendment expressly providing that the legislature may authorize the counties to issue housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the funded debt of the counties.
Report Title:
Housing Infrastructure Growth Bonds; Counties; County Debt Limit Statements
Description:
Conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
3218 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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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. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance
committee" [shall mean] means the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.
"Corporation counsel" [shall
mean] means the chief legal advisor or legal representative of the
county.
"County" [shall include]
includes each county of the State, including the city and county of
Honolulu.
"Director of finance" [shall
mean] means the director of finance of the county, or if the county
does not have a director of finance, the officer of the county in whom is
vested the functions and powers of maintaining the treasury of the county and
issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" [shall
mean] means the fiscal year of the county as defined in section
46-41.
"Special assessment bonds"
[shall mean] means bonds issued under special improvement
statutes when the only security for [such] the bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.
As used in sections 47C-1 through
47C-6, the words or terms "bonds", "general obligation
bonds", "housing infrastructure growth bonds", "net
revenue", "net user tax receipts", "reimbursable general
obligation bonds", "revenue bonds", "special purpose
revenue bonds", and "user tax" shall have the respective
meanings and inclusions given to [such] those words and terms in [section
12 of article VII of the constitution.] article VII, section 12, of the
Hawaii State Constitution."
SECTION 2. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2 Determination of funded
debt. Within ninety days after the
first day of each fiscal year, the director of finance of each county shall
ascertain and set forth in a tabular summary the total indebtedness of the
county outstanding and unpaid as of the first day of [such] that fiscal
year. The summary shall include the
following:
(1) An itemization of
the total principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, special
purpose revenue bonds, housing infrastructure growth bonds, and all
other bonds of the county outstanding and unpaid, including bonds [which]
that may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9,
and 10 of [section 13 of article VII of the constitution] article
VII, section 13, of the Hawaii State Constitution when determining the
funded debt of the county for the purposes of that section together with a
grand total of [such] the total principal amounts[.];
(2) The total
principal amount of all bonds of the State required by clause [(7)] 7
of [section 13 of article VII of the constitution] article VII,
section 13, of the Hawaii State Constitution to be included when
determining the funded debt of the county for the purposes of that section[.];
(3) A grand total of
the total principal amounts set forth in the summary pursuant to paragraphs (1)
and (2)[.];
(4) An itemization of
the total of the principal amount of all general obligation bonds, reimbursable
general obligation bonds, revenue bonds, special assessment bonds, [and]
special purpose revenue bonds, and housing infrastructure growth bonds
of the county outstanding and unpaid [which] that may be excluded
under clauses 1, 2, 3, 4, 5, 6, 8, [and] 9, and 10 of [section
13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution when
determining the total funded debt of the county for the purposes of that
section, together with a grand total of [such] the total
principal amounts[.]; and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The director of finance shall also
prepare and attach to the tabular summary [such] the supporting
schedules as may be required to set forth in detail the bonds included in the
itemizations required by paragraphs (1) and (4). [Such] The supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 3. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3 Supplemental
determination. Whenever the county
proposes to issue bonds, the director of finance shall prepare a supplemental
summary of the indebtedness of the county setting forth [therein such] the
information and findings as of a date within thirty days of the delivery of [such]
the bonds as will bring up to date and make current the most recent
summary prepared in accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such] the
supporting schedules [as] that may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [such] the legal and financial findings [as]
that will justify any changes in the itemizations set forth in [such]
the previous summary pursuant to the requirements of [paragraph (4)
of section 47C-2.] section 47C-2(4). If all the bonds proposed to be issued may be
excluded when determining the funded debt of the county for the purposes of [section
13 of article VII of the constitution] article VII, section 13, of the
Hawaii State Constitution by reason of the provisions of clauses 2 [or],
4, or 10 of that section, the supplemental summary and supporting schedules
may be limited to [such] those bonds and findings as are
necessary to justify [such] the exclusion under [such] those
clauses.
In the event proceeds of the bonds
proposed to be issued are to be applied to the retirement in the then fiscal
year of outstanding bonds, including notes issued in anticipation of the
issuance of the bonds proposed to be issued, for the purpose of applying the
provisions of clause 1 of [section 13 of article VII of the constitution]
article VII, section 13, of the Hawaii State Constitution to the bonds
to be retired, that amount of [such] the proceeds to be [so]
applied may be considered and treated as moneys irrevocably set aside for the
payment of [such] the bonds."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval and upon ratification of a constitutional amendment expressly providing that the legislature may authorize the counties to issue housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the funded debt of the counties.
Report Title:
Housing Infrastructure Growth Bonds; Counties; County Debt Limit Statements
Description:
Conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
3218 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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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. Section 47C-1, Hawaii Revised Statutes, is amended to read as follows:
"§47C-1 Definitions. As used in sections 47C-1 through 47C-6, the following words and terms shall have the following meanings or inclusions:
"Chairperson of the finance committee" shall mean the chairperson of the finance committee of the council of the county, or if the council of the county does not have a finance committee, the member of the council appointed by the council to perform the functions required by this chapter to be performed by the chairperson of the finance committee of the council.
"Corporation counsel" shall mean the chief legal advisor or legal representative of the county.
"County" shall include each county of the State, including the city and county of Honolulu.
"Director of finance" shall mean the director of finance of the county, or if the county does not have a director of finance, the officer of the county in whom is vested the functions and powers of maintaining the treasury of the county and issuing and selling, paying interest on, and redeeming bonds of the county.
"Fiscal year" shall mean the fiscal year of the county as defined in section 46-41.
"Special
assessment bonds" shall mean bonds issued under special improvement
statutes when the only security for [such] the bonds is the
assessments or special taxes levied and assessed under those statutes or
properties subject to the assessments or special taxes.
As used in
sections 47C-1 through 47C-6, the words or terms "bonds",
"general obligation bonds", "housing infrastructure growth
bonds", "net revenue", "net user tax receipts",
"reimbursable general obligation bonds", "revenue bonds",
"special purpose revenue bonds", and "user tax" shall have
the respective meanings and inclusions given to [such] those words
and terms in section 12 of article VII of the constitution."
SECTION 2. Section 47C-2, Hawaii Revised Statutes, is amended to read as follows:
"§47C-2
Determination of funded debt.
Within ninety days after the first day of each fiscal year, the director
of finance of each county shall ascertain and set forth in a tabular summary
the total indebtedness of the county outstanding and unpaid as of the first day
of [such] that fiscal year.
The summary shall include the following:
(1) An itemization of the total principal amount
of all general obligation bonds, reimbursable general obligation bonds, revenue
bonds, special assessment bonds, special purpose revenue bonds, housing
infrastructure growth bonds, and all other bonds of the county outstanding
and unpaid, including bonds [which] that may be excluded under
clauses 1, 2, 3, 4, 5, 6, 8, [and] 9, and 10 of section 13 of
article VII of the constitution when determining the funded debt of the county
for the purposes of that section together with a grand total of such total
principal amounts[.];
(2) The total principal amount of all bonds of the
State required by clause (7) of section 13 of article VII of the constitution
to be included when determining the funded debt of the county for the purposes
of that section[.];
(3) A grand total of the total principal amounts
set forth in the summary pursuant to paragraphs (1) and (2)[.];
(4) An itemization of the total of the principal
amount of all general obligation bonds, reimbursable general obligation bonds,
revenue bonds, special assessment bonds, [and] special purpose revenue
bonds, and housing infrastructure growth bonds of the county outstanding
and unpaid [which] that may be excluded under clauses 1, 2, 3, 4,
5, 6, 8, [and] 9, and 10 of section 13 of article VII of the constitution when
determining the total funded debt of the county for the purposes of that
section, together with a grand total of such total principal amounts[.];
and
(5) The difference between the grand total principal amount set forth in the summary pursuant to paragraph (3) and the grand total principal amount set forth in the summary pursuant to paragraph (4).
The
director of finance shall also prepare and attach to the tabular summary [such]
the supporting schedules as may be required to set forth in detail the
bonds included in the itemizations required by paragraphs (1) and (4). [Such] The supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of assessment
collections, revenues, user tax receipts, cost of operation, maintenance and
repair, net revenues, net user tax receipts, reimbursements to the general
fund, and other financial information, justifying the inclusion of [such]
the bonds in the itemization required by paragraph (4). The director of finance shall indicate in the
supporting schedules whether the financial findings and figures are based upon
the records of the director's office or upon audited statements and reports,
and if based upon the latter, shall identify in the schedules the audited
reports and statements."
SECTION 3. Section 47C-3, Hawaii Revised Statutes, is amended to read as follows:
"§47C-3
Supplemental determination.
Whenever the county proposes to issue bonds, the director of finance
shall prepare a supplemental summary of the indebtedness of the county setting
forth [therein such] the information and findings as of a date
within thirty days of the delivery of [such] the bonds as will
bring up to date and make current the most recent summary prepared in
accordance with the provisions of section 47C-2. The director of finance shall also prepare
and attach to [such] the supplemental summary [such] the
supporting schedules [as] that may be required to set forth in
detail the variations and changes from the summary prepared in accordance with
section 47C-2, including [such] the legal and financial findings
[as] that will justify any changes in the itemizations set forth
in [such] the previous summary pursuant to the requirements of [paragraph
(4) of section 47C-2.] section 47C-2(4). If all the bonds proposed to be issued may be
excluded when determining the funded debt of the county for the purposes of
section 13 of article VII of the constitution by reason of the provisions of
clauses 2 [or], 4, or 10 of that section, the supplemental
summary and supporting schedules may be limited to [such] those bonds
and findings as are necessary to justify [such] the exclusion
under [such] those clauses.
In the
event proceeds of the bonds proposed to be issued are to be applied to the
retirement in the then fiscal year of outstanding bonds, including notes issued
in anticipation of the issuance of the bonds proposed to be issued, for the
purpose of applying the provisions of clause 1 of section 13 of article VII of
the constitution to the bonds to be retired, that amount of [such] the
proceeds to be [so] applied may be considered and treated as moneys
irrevocably set aside for the payment of [such] the bonds."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval and upon ratification of a constitutional amendment expressly providing that the legislature may authorize the counties to issue housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the funded debt of the counties.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Housing Infrastructure Growth Bonds; Counties; County Debt Limit Statements
Description:
Conforms county debt limit statements law to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| May 26, 2026 | Act 031, on 05/22/2026 (Gov. Msg. No. 1131). |
| May 26, 2026 | Act 031, 05/22/2026 (Gov. Msg. No. 1131). |
| May 8, 2026 | Enrolled to Governor. |
| May 8, 2026 | Received notice of passage on Final Reading in House (Hse. Com. No. 888). |
| May 6, 2026 | Received notice of Final Reading (Sen. Com. No. 816). |
| May 6, 2026 | Passed Final Reading as amended in CD 1 with Representative(s) Cochran voting aye with reservations; Representative(s) Iwamoto voting no (1) and Representative(s) Alcos excused (1). |
| May 6, 2026 | Passed Final Reading, as amended (CD 1). Ayes, 25; Aye(s) with reservations: none . 0 No(es): none. 0 Excused: none. |
| May 1, 2026 | Forty-eight (48) hours notice Wednesday, 05-06-26. |
| May 1, 2026 | Reported from Conference Committee (Conf Com. Rep. No. 219-26) as amended in (CD 1). |
| May 1, 2026 | 48 Hrs. Notice (as amended CD 1) 05-06-26. |
| May 1, 2026 | Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 219-26). |
| May 1, 2026 | The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Evslin, Miyake, Muraoka; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| May 1, 2026 | The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Wakai, Hashimoto, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Apr 30, 2026 | Conference committee meeting to reconvene on 05-01-26 10:10AM; Conference Room 224. |
| Apr 29, 2026 | Conference committee meeting to reconvene on 04-30-26 10:10AM; Conference Room 224. |
| Apr 28, 2026 | Conference committee meeting to reconvene on 04-29-26 10:10AM; Conference Room 224. |
| Apr 27, 2026 | Conference committee meeting to reconvene on 04-28-26 10:10AM; CR 224. |
| Apr 24, 2026 | Conference committee meeting to reconvene on 04-27-26 10:10AM; Conference Room 224. |
| Apr 23, 2026 | Bill scheduled for Conference Committee Meeting on Friday, 04-24-26 10:10AM in conference room 224. |
| Apr 21, 2026 | Received notice of Senate conferees (Sen. Com. No. 718). |
| Apr 21, 2026 | Senate Conferees Appointed: Wakai Chair; Hashimoto Co-Chair; Fevella. |
| Apr 20, 2026 | Received notice of appointment of House conferees (Hse. Com. No. 787). |
| Apr 20, 2026 | House Conferees Appointed: Evslin, Miyake Co-Chairs; Muraoka. |
| Apr 16, 2026 | Received notice of disagreement (Sen. Com. No. 710). |
| Apr 16, 2026 | Senate disagrees with House amendments. |
| Apr 16, 2026 | Received from House (Hse. Com. No. 762). |
| Apr 14, 2026 | Passed Third Reading as amended in HD 2 with Representative(s) Cochran voting aye with reservations; Representative(s) Iwamoto voting no (1) and Representative(s) Quinlan excused (1). Transmitted to Senate. |
| Apr 10, 2026 | Forty-eight (48) hours notice Tuesday, 04-14-26. |
| Apr 10, 2026 | Reported from FIN (Stand. Com. Rep. No. 2143-26) as amended in HD 2, recommending passage on Third Reading. |
| Apr 8, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 15 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Hussey. |
| Apr 7, 2026 | Bill scheduled for decision making on Wednesday, 04-08-26 1:56PM in conference room 308 VIA VIDEOCONFERENCE. |
| Apr 7, 2026 | The committee(s) on FIN recommend(s) that the measure be deferred until 04-08-26. |
| Apr 2, 2026 | Bill scheduled for decision making on Tuesday, 04-07-26 10:10AM in conference room 308 VIA VIDEOCONFERENCE. |
| Apr 2, 2026 | The committee(s) on FIN recommend(s) that the measure be deferred until 04-07-26. |
| Mar 31, 2026 | Bill scheduled to be heard by FIN on Thursday, 04-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Mar 23, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kong, Lowen, Perruso, Poepoe, Quinlan excused (6). |
| Mar 23, 2026 | Reported from HSG (Stand. Com. Rep. No. 1321-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 18, 2026 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, Muraoka, Pierick; Ayes with reservations: Representative(s) Cochran; Noes: none; and 1 Excused: Representative(s) La Chica. |
| Mar 16, 2026 | Bill scheduled to be heard by HSG on Wednesday, 03-18-26 9:00AM in House conference room 430 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | Referred to HSG, FIN, referral sheet 17 |
| Mar 12, 2026 | Pass First Reading |
| Mar 10, 2026 | Received from Senate (Sen. Com. No. 381) in amended form (SD 2). |
| Mar 10, 2026 | Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Mar 5, 2026 | 48 Hrs. Notice 03-10-26. |
| Mar 5, 2026 | Reported from WAM (Stand. Com. Rep. No. 2843) with recommendation of passage on Third Reading, as amended (SD 2). |
| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Feb 25, 2026 | The committee(s) on WAM deferred the measure until 03-03-26 10:15AM; Conference Room 211 & Videoconference. |
| Feb 23, 2026 | The committee(s) on WAM will hold a public decision making on 02-25-26 10:56AM; Conference Room 211 & Videoconference. |
| Feb 19, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 19, 2026 | Reported from EIG (Stand. Com. Rep. No. 2454) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 17, 2026 | The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 3 Aye(s): Senator(s) Wakai, Chang, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) DeCoite, Richards. |
| Feb 13, 2026 | The committee(s) on EIG has scheduled a public hearing on 02-17-26 3:05PM; Conference Room 224 & Videoconference. |
| Feb 2, 2026 | Referred to EIG, WAM. |
| Jan 28, 2026 | Passed First Reading. |
| Jan 28, 2026 | Introduced. |
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Date
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Description
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Location
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Votes
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| May 6, 2026 | Final Reading | House Floor |
Passed |
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| May 6, 2026 | Final Reading | Senate Floor |
Passed |
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| Apr 14, 2026 | Third Reading | House Floor |
Passed |
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| Apr 8, 2026 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
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| Mar 18, 2026 | The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Housing |
Passed |
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| Mar 10, 2026 | Third Reading | Senate Floor |
Passed |
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| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 17, 2026 | The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Energy and Intergovernmental Affairs |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Avalon Group | *** Support | Apr 2, 2026 |
| Castle & Cooke Homes Hawaiʻi, Inc. | *** Support | Apr 2, 2026 |
| County of Kaua‘i, Office of the Mayor | *** Support | Apr 2, 2026 |
| D.R. Horton Hawaii | *** Support | Apr 2, 2026 |
| Department of Budget and Fiscal Services, City and County of Honolulu | *** Support | Apr 2, 2026 |
| Gentry Companies | ** Support | |
| Hawaii Housing Finance and Development Corporation | *** Support | Apr 2, 2026 |
| Hawaii Public Housing Authority (HPHA) | *** Support | Apr 2, 2026 |
| Hawaii Regional Council of Carpenters | *** Support | Feb 27, 2026 |
| Hawaiʻi Regional Council of Carpenters | *** Support | Apr 2, 2026 |
| Hawai‘i Association of REALTORS® | *** Support | Apr 2, 2026 |
| Hawai‘i Community Development Authority | *** Support | Apr 2, 2026 |
| Hawai‘i County Council | *** Support | Feb 27, 2026 |
| Hawai‘i County Council, District 2 | *** Support | Apr 2, 2026 |
| Hawai‘i State Association of Counties (HSAC) | *** Support | Apr 2, 2026 |
| Honolulu City Council | *** Support | Feb 27, 2026 |
| Housing Hawai‘i’s Future | *** Support | Mar 18, 2026 |
| Kaua‘i County Council | *** Support | Apr 2, 2026 |
| Kobayashi Group | ** Support | |
| Kobayashi Group | *** Support | Feb 17, 2026 |
| Land Use Research Foundation of Hawaii | *** Support | Feb 27, 2026 |
| Land Use Research Foundation of Hawai‘i (LURF) | *** Support | Apr 2, 2026 |
| Land Use Research Foundation of Hawai’i | *** Support | Mar 18, 2026 |
| Maui Chamber of Commerce | *** Support | Mar 18, 2026 |
| Maui County Council | *** Support | Apr 2, 2026 |
| Navian Hawaii | *** Support | Mar 18, 2026 |
| Office of Planning and Sustainable Development | *** Support | Mar 18, 2026 |
| Office of Planning and Sustainable Development, State of Hawai‘i | *** Support | Apr 2, 2026 |
| Pacific Resource Partnership (PRP) | *** Support | Apr 2, 2026 |
| Stadium Authority, Department of Business, Economic Development, and Tourism | *** Support | Apr 2, 2026 |
STAND. COM. REP. NO. 2843
Honolulu, Hawaii
RE: S.B. No. 3218
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 3218, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO BONDS,"
begs leave to report as follows:
The purpose and intent of this measure is to promote housing development in the State.
More specifically, this measure conforms state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment is ratified authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt.
Your Committee received written comments in support of this measure from the Hawaii Housing Finance and Development Corporation, Stadium Authority, three members of the Honolulu City Council, two members of the Hawaii County Council, two members of the Maui County Council, a member of the Kauai County Council, Avalon Group, D.R. Horton Hawaii, Hawaii Association of REALTORS, Hawaii Regional Council of Carpenters, Hawaii State Association of Counties, Land Use Research Foundation of Hawaii, and Pacific Resource Partnership.
Your Committee finds that Hawaii continues to face a serious housing shortage, and infrastructure remains one of the most significant barriers to housing production. Roads, water and sewer systems, drainage, and public amenities must be in place before homes can be built. Your Committee also finds that measures have been introduced to address this issue by proposing amendments to the Hawaii State Constitution to authorize counties to issue housing infrastructure growth bonds and to exclude those bonds from determinations of the counties' funded debt. Your Committee finds that this measure conforms existing statutes in the event that the proposed constitutional amendments are ratified.
Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3218, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3218, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 2454
Honolulu, Hawaii
RE: S.B. No. 3218
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Energy and Intergovernmental Affairs, to which was referred S.B. No. 3218 entitled:
"A BILL FOR AN ACT RELATING TO BONDS,"
begs leave to report as follows:
The purpose and intent of this measure is to conform state law concerning county debt limits to permit counties to exclude housing infrastructure growth bonds from the debt limit of the counties, if a constitutional amendment authorizing the use of housing infrastructure growth bonds and excluding housing infrastructure growth bonds from determinations of the counties' funded debt is ratified.
Your Committee received testimony in support of this measure from the Stadium Authority; Hawaii Housing Finance and Development Corporation; Office of Planning and Sustainable Development; Hawaii Community Development Authority; Pacific Resource Partnership; D.R. Horton Hawaii; Hawaiʻi Association of REALTORS; Gentry Companies; Castle & Cooke Homes Hawaiʻi, Inc.; Housing Hawaiʻi's Future; Hawaii Regional Council of Carpenters; and Kobayashi Group.
Your Committee finds that infrastructure financing is one of the biggest barriers to affordable housing development in the State. While a proposed constitutional amendment authorizing the counties to issue housing infrastructure growth bonds and exclude those bonds from county debt limit calculations has been proposed to address this barrier, conforming amendments to the Hawaii Revised Statutes will be necessary to implement the housing policy objectives of that measure. Housing infrastructure growth bonds facilitate the construction of housing infrastructure and are therefore an integral part of all projected housing developments statewide. This measure will operationalize the State's strategy to accelerate housing development, particularly in transit‑oriented development areas and other priority growth areas.
Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3218, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3218, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,
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________________________________ GLENN WAKAI, Chair |
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Date
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Testimony PDF
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|---|---|
| Apr 2, 2026 | SB3218_HD1_TESTIMONY_FIN_04-02-26_.PDF |
| Mar 18, 2026 | SB3218_SD2_TESTIMONY_HSG_03-18-26_.PDF |
| Feb 27, 2026 | SB3218_SD1_TESTIMONY_WAM_02-25-26_.PDF |
| Feb 17, 2026 | SB3218_TESTIMONY_EIG_02-17-26_.PDF |
Discussed in Hearing
4MIN
Conference Committee
40SEC
Conference Committee
55SEC
Conference Committee
2MIN
Conference Committee
43SEC
House Standing Committee on Finance
3MIN
House Standing Committee on Housing
5MIN
House Standing Committee on Housing
26SEC
Senate Standing Committee on Public Safety and Military Affairs
Bill Author
