HOUSE OF REPRESENTATIVES	H.B. NO.	279
THIRTY-SECOND LEGISLATURE, 2023		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE COUNTIES.

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

SECTION 1. The legislature finds that while private roads are under the ownership of private persons, the use of the private roads are not exclusive to those private persons. For example, private roads are often heavily used by first responders to respond to emergencies and by school buses for the transportation of students to and from school. Accordingly, the legislature finds that supporting the maintenance and upkeep of these private roads serve a public purpose.

The purpose of this Act is to allow the counties to utilize tax revenues collected by the counties for certain purposes related to public roadways and private roads that are open to and used by the public.

SECTION 2. Section 46-16.8, Hawaii Revised Statutes, is amended to read as follows:

"§46-16.8 County surcharge on state tax. (a) Each county may establish a surcharge on state tax at the rates enumerated in sections 237-8.6 and 238-2.6. A county electing to establish this surcharge shall do so by ordinance; provided that:

(1) No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance;

(2) The ordinance shall be adopted [prior to] before December 31, 2005; and

(3) No county surcharge on state tax that may be authorized under this subsection shall be levied [prior to] before January 1, 2007, or after December 31, 2022, unless extended pursuant to subsection (b).

Notice of the public hearing required under paragraph (1) shall be published in a newspaper of general circulation within the county at least twice within a period of thirty days immediately preceding the date of the hearing.

A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted a surcharge on state tax ordinance and, beginning no earlier than January 1, 2007, the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax.

(b) Each county that has established a surcharge on state tax [prior to] before July 1, 2015, under authority of subsection (a) may extend the surcharge until December 31, 2030, at the same rates. A county electing to extend this surcharge shall do so by ordinance; provided that:

(1) No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance; and

(2) The ordinance shall be adopted [prior to] before January 1, 2018.

A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted an ordinance extending the surcharge on state tax. The director of taxation shall levy, assess, collect, and otherwise administer the extended surcharge on state tax.

(c) Each county that has not established a surcharge on state tax [prior to] before July 1, 2015, may establish the surcharge at the rates enumerated in sections 237-8.6 and 238-2.6. A county electing to establish this surcharge shall do so by ordinance; provided that:

(1) No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance;

(2) The ordinance shall be adopted [prior to] before March 31, 2019; and

(3) No county surcharge on state tax that may be authorized under this subsection shall be levied [prior to] before January 1, 2019, or after December 31, 2030.

A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted a surcharge on state tax ordinance. Beginning on January 1, 2019, or January 1, 2020, as applicable pursuant to sections 237-8.6 and 238-2.6, the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax.

(d) Notice of the public hearing required under subsection (b) or (c) before adoption of an ordinance establishing or extending the surcharge on state tax shall be published in a newspaper of general circulation within the county at least twice within a period of thirty days immediately preceding the date of the hearing.

(e) Each county with a population greater than five hundred thousand that adopts or extends a county surcharge on state tax ordinance pursuant to subsection (a) or (b) shall use the surcharge revenues received from the State for capital costs of a locally preferred alternative for a mass transit project; provided that revenues derived from the county surcharge on state tax shall not be used:

(1) To build or repair [public roads or highways,] bicycle paths[,] or support public transportation systems already in existence [prior to] before July 12, 2005;

(2) For operating costs or maintenance costs of the mass transit project or any purpose not consistent with this subsection; or

(3) For administrative or operating, marketing, or maintenance costs, including personnel costs, of a rapid transportation authority charged with the responsibility for constructing, operating, or maintaining the mass transit project;

provided further that nothing in this section shall be construed to prohibit a county from using county funds that are not derived from a surcharge on state tax for a purpose described in paragraph (2) or (3).

(f) Each county with a population equal to or less than five hundred thousand that adopts a county surcharge on state tax ordinance pursuant to this section shall use the surcharges received from the State for:

(1) Operating or capital costs of public transportation within each county for public transportation systems, including public roadways or highways, public buses, trains, ferries, pedestrian paths or sidewalks, or bicycle paths; and

(2) Expenses in complying with the Americans with Disabilities Act of 1990 with respect to paragraph (1).

(g) In addition to the uses specified in subsections (e) and (f), each county that adopts a county surcharge on state tax ordinance pursuant to this section may use the surcharges received from the State for the maintenance of public roadways or privately-owned roadways that are open to the public.

[(g)] (h) As used in this section, "capital costs" means nonrecurring costs required to construct a transit facility or system, including debt service, costs of land acquisition and development, acquiring of rights-of-way, planning, design, [and] construction, and [including] equipping and furnishing the facility or system. For a county with a population greater than five hundred thousand, capital costs also include [non-recurring] nonrecurring personal services and other overhead costs that are not intended to continue after completion of construction of the minimum operable segment of the locally preferred alternative for a mass transit project."

SECTION 3. Section 243-6, Hawaii Revised Statutes, is amended to read as follows:

"§243-6 Fuel taxes, dispositions. (a) The ["city and county of Honolulu fuel tax"] city and county of Honolulu fuel tax shall be paid by the department of taxation into the state treasury, and shall, by the state director of finance, be paid over to the director of finance of the city and county of Honolulu for deposit into the [fund known as the "highway fund"] highway fund created by section 249-18.

(b) The ["county of Kauai fuel tax"] county of Kauai fuel tax shall be paid by the department of taxation into the state treasury, and shall, by the state director of finance, be paid over to the director of finance of the county of Kauai for deposit into the [fund known as the "highway fund"] highway fund created by section 249-18.

(c) The ["county of Hawaii fuel tax"] county of Hawaii fuel tax shall be paid by the department of taxation into the state treasury, and shall, by the state director of finance, be paid over to the director of finance of the county of Hawaii for deposit into the [fund known as the "highway fund"] highway fund created by section 249-18.

(d) The ["county of Maui fuel tax"] county of Maui fuel tax collected on account of liquid fuel sold or used on the island of Lanai or sold elsewhere for ultimate use on the island of Lanai, shall be paid by the department of taxation into the state treasury, and shall, by the state director of finance, be paid over to the director of finance of the county of Maui for deposit into the [fund known as the "highway fund"] highway fund created by section 249-18, for expenditure on the island of Lanai. The ["county of Maui fuel tax"] county of Maui fuel tax collected on account of liquid fuel sold or used on the island of Molokai or sold elsewhere for ultimate use on the island of Molokai, shall be paid by the department of taxation into the state treasury, and shall, by the state director of finance, be paid over to the director of finance of the county of Maui for deposit into the [fund known as the "highway fund"] highway fund created by section 249-18, for expenditure on the island of Molokai. The remainder of the ["county of Maui fuel tax"] county of Maui fuel tax shall be paid by the department of taxation into the state treasury, and shall, by the state director of finance, be paid over to the director of finance of the county of Maui for deposit into the [fund known as the "highway fund"] highway fund created by section 249-18.

(e) Each of the [foregoing] taxes under subsections (a) through (d) shall be expended for the following purposes, for the island for which the tax revenue is specially indicated, or, if none, for the county for which the tax revenue is indicated:

(1) For payment of interest on and redemption of any bonds duly issued or sold on or after July 1, 1951, under chapter 47 for the financing or aiding in financing the construction of county highway tunnels, approach roads thereto, and highways. [Such payments] Payments of interest and principal on the bonds when due[,] shall be first charges on such moneys so deposited in the fund[.];

(2) For acquisition, designing, construction, reconstruction, improvement, repair, and maintenance of county main and general thoroughfares, highways, and other streets, including private roadways that are open to and used by the public, street lights, storm drains, and bridges, including costs of new land therefor, when expenditures for [the foregoing] these purposes cannot be financed under state-federal aid projects[.];

(3) In the case of the city and county of Honolulu, for payment of the city and county's share in an improvement district initiated by the city and county for an improvement listed in [[]paragraph[]] (2) [above which] that is permitted to be constructed in the city and county[.];

(4) For the construction of county highway tunnels, overpasses, underpasses, and bridges, where such improvement cannot be made under state-federal aid projects[.];

(5) For purposes and functions connected with county traffic control and preservation of safety upon the public highways and streets[.], including private roadways that are open to and used by the public;

(6) For purposes and functions in connection with mass transit[.]; and

(7) For acquisition, design, construction, improvement, repair, and maintenance of bikeways.

[(8)] (f) No expenditure under subsection (e) shall be made[,] out of the revenues paid into any such fund[, which] that will jeopardize federal aid for highway construction."

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, 3000.

Report Title:

County Surcharge; State Taxes; Repair and Maintenance; Private Roadways

Description:

Authorizes the counties to use the county surcharge on state tax revenues and fuel tax revenues for certain purposes related to public roadways and private roadways that are open to the public. 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.