REPORT TITLE:
Watershed Protection


DESCRIPTION:
Establishes a watershed protection trust fund to fund public and
private watershed management projects benefiting water quality;
water quantity, and general watershed values within designated
watershed areas.  Establishes a review board to identify
watershed management areas.  Imposes a watershed protection tax.
Effective 07/01/01.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2835
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO WATERSHED PROTECTION.



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

 1      SECTION 1.  Chapter 174C, Hawaii Revised Statutes, is
 
 2 amended by adding a new part to be appropriately designated and
 
 3 to read as follows:
 
 4            "PART    .  WATERSHED PROTECTION TRUST FUND
 
 5      §174C-A  Findings and purpose.  The legislature finds that
 
 6 Hawaii's forests function as critical watersheds and are the
 
 7 primary source of fresh water for the islands.  Hawaii's native
 
 8 forests in particular have evolved into efficient ecosystems that
 
 9 capture and store appreciably more water than any other natural
 
10 milieu.  The forested watersheds, both native and non-native, are
 
11 vital recharge areas for Hawaii's underground aquifers and a
 
12 dependable source of clean water for its streams.
 
13      The legislature finds that the relationship of Hawaii's
 
14 forested uplands to a dependable supply of clean fresh water was
 
15 recognized over a century ago.  During that period, public and
 
16 private interests recognized that years of extensive cattle
 
17 grazing and other land use practices contributed significantly to
 
18 the degradation of the forests.  Public and private concerns
 
19 about water supply and quality were the impetus for placing the
 

 
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 1 forests into reserves and undertaking massive reforestation at
 
 2 the turn of the century.  The legislature finds that since then,
 
 3 public and private investment in watershed protection and
 
 4 management has increasingly diminished and, once again, our
 
 5 forested watersheds are steadily degrading.  Moreover, over the
 
 6 last one hundred years, Hawaii has lost half of its native
 
 7 forests.
 
 8      The legislature recognizes that fresh water is not an
 
 9 infinite resource and that its high quality, quantity, and
 
10 sustainability are essentially linked to the existence of high
 
11 quality water recharge areas.  The legislature finds that there
 
12 are presently approximately two million acres of major watershed
 
13 areas statewide.  The purpose of this chapter is to establish a
 
14 dedicated source of funds to protect, preserve, and enhance
 
15 important watershed areas as essential and sustainable sources of
 
16 fresh water.  The legislature finds that the protection,
 
17 preservation, and enhancement of important watershed areas and
 
18 any appropriations, expenditures, and levying of taxes for the
 
19 purpose of this chapter are in the public interest and of
 
20 statewide concern and vital to the future welfare of the State
 
21 and its people.
 
22      §174C-B  Definitions.  The following terms, wherever used or
 
23 referred to in this part, shall have the following meanings
 

 
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 1 unless a different meaning clearly appears from the context:
 
 2      "Board" means the watershed protection trust fund review
 
 3 board.
 
 4      "Trust fund" means the watershed protection trust fund.
 
 5      "Water recharge and protection area" means a non-regulatory
 
 6 designation used by the commission to identify a watershed area,
 
 7 on public or private land, which contributes to domestic water
 
 8 supplies and where public or private management activities are
 
 9 needed to enhance, protect, and manage the vegetative cover and
 
10 soil, retard rapid runoff of storm flows, prevent soil erosion,
 
11 and improve infiltration of water though the soil to optimize
 
12 recharge of surface and groundwater supplies.
 
13      §174C-C  Watershed protection trust fund established.(a)
 
14 There is established within the state treasury a watershed
 
15 protection trust fund to be administered by the commission on
 
16 water resource management to implement the purposes of this part.
 
17      (b)  The purpose of the trust fund is to fund public and
 
18 private watershed management projects and activities benefiting
 
19 water quality, water quantity, and general watershed values
 
20 within designated watershed management areas.  The trust fund
 
21 shall be used to fund:
 
22      (1)  Projects or activities that manage and protect
 
23           watershed management areas including watershed
 

 
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 1           maintenance and enhancement projects within watershed
 
 2           management areas, including erosion prevention and
 
 3           control, reforestation, alien species control and
 
 4           eradication, exclusion of stock, and control of feral
 
 5           animals;
 
 6      (2)  Water and watershed resources monitoring efforts,
 
 7           including stream and rainfall gauging, well and ground-
 
 8           water monitoring, and water quality and stream aquatic
 
 9           resources studies; and
 
10      (3)  Administrative costs.
 
11      (c)  Appropriations, contributions, grants, and donations
 
12 from public and private sources and any other moneys designated
 
13 by law may be deposited into the trust fund. Interest accrued and
 
14 earnings on the investment of the assets of the trust fund shall
 
15 be credited to and become a part of the trust fund.  Any balance
 
16 in the trust fund at the end of a fiscal year shall be carried
 
17 forward to the next fiscal year.
 
18      (d)  In consultation with and after consideration of the
 
19 recommendations of the watershed protection trust fund review
 
20 board, the commission shall designate water recharge and
 
21 protection areas.  The commission shall approve watershed
 
22 management projects and activities to be funded by the trust fund
 
23 based on recommendations submitted to the commission by the
 

 
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 1 board.
 
 2      (e)  Pursuant to chapter 91, the commission shall adopt
 
 3 rules to carry out the purposes of this part.
 
 4      §174C-D  Watershed protection trust fund review board;
 
 5 established.(a)  There is established under the commission on
 
 6 water resource management a watershed protection trust fund
 
 7 review board.  The board shall consist of nine members who shall
 
 8 be appointed in the manner and serve for the term set forth in
 
 9 section 26-34.  Two members shall be persons possessing
 
10 professional qualifications as evidenced by an academic degree in
 
11 fields such as hydrology or geology.  Two members shall be
 
12 persons possessing professional qualifications as evidenced by an
 
13 academic degree in fields such as biology or ecology.  Each
 
14 county water agency shall appoint a member to the board.  The
 
15 chairperson of the board of land and natural resources or a
 
16 designated representative shall serve as an ex officio voting
 
17 member of the board.
 
18      (b)  The members of the board shall serve without
 
19 compensation but shall be reimbursed for expenses, including
 
20 travel expenses, necessary for performance of their duties.
 
21      §174C-E  Watershed protection trust fund review board;
 
22 powers and duties.  In addition to any other powers and duties
 
23 granted by this part, the board shall:
 

 
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 1      (1)  Identify and recommend to the commission water recharge
 
 2           and protection areas;
 
 3      (2)  Develop and recommend to the commission criteria for
 
 4           eligible watershed management projects;
 
 5      (3)  Develop and recommend to the commission procedures and
 
 6           criteria for selecting eligible watershed management
 
 7           projects;
 
 8      (4)  Analyze problems and issues encountered in the
 
 9           equitable levy, assessment, and collection of the
 
10           watershed protection tax;
 
11      (5)  Make recommendations to improve the equitable
 
12           collection of the watershed protection tax pursuant to
 
13           chapter     ;
 
14      (6)  Review watershed management project proposals for
 
15           funding from the trust fund; and
 
16      (7)  Recommend to the commission for approval watershed
 
17           management projects within watershed management areas
 
18           and the amount of funds from the trust fund to allocate
 
19           for such projects."
 
20      SECTION 2.  The Hawaii Revised Statutes is amended by adding
 
21 a new chapter to be appropriately designated and to read as
 
22 follows:
 
23                             "CHAPTER
 

 
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 1                     WATERSHED PROTECTION TAX
 
 2      §   -1  Imposition of tax.  There shall be levied, assessed,
 
 3 and collected a watershed protection tax on the domestic use of
 
 4 water from municipal water systems at the rate of 5 cents per one
 
 5 thousand gallons of water used.  The tax shall be collected by
 
 6 the county water agency as part of its regular billing to its
 
 7 customers.
 
 8      §   -2  Disposition of taxes.  All taxes collected under
 
 9 this chapter shall be paid into the watershed protection trust
 
10 fund established in section 174C-C."
 
11      SECTION 3.  Pursuant to article VIII, section 5, of the
 
12 Hawaii state constitution, the State shall share in the cost
 
13 incurred by the county water agencies in the collection of the
 
14 watershed protection tax established under chapter   , Hawaii
 
15 Revised Statutes.
 
16      SECTION 4.  In codifying the new part added to chapter 174C,
 
17 Hawaii Revised Statutes, by section 1 of this Act, the revisor of
 
18 statutes shall substitute appropriate section numbers for the
 
19 letters used in the designations of those new sections.
 
20      SECTION 5.  This Act shall take effect on July 1, 2001.