Hawaii-2022-SB2406-Amended

SECTION 1. The legislature finds that the issuance of special purpose revenue bonds provides investors in private capital improvement projects with tax exemptions when those projects are in the public interest. However, the term "public interest" is ill-defined, leading to situations where these valuable tax exemptions, which decrease the State's tax base, are given to projects that are primarily or purely in the interest of private entities without clear public benefit. The legislature further finds that the creation of jobs alone does not sufficiently satisfy the public interest requirement of special purpose revenue bonds, especially when those jobs may not provide a living wage in Hawai‘i.

Accordingly, the purpose of this Act is to define the term "public interest" with regard to the issuance of special purpose revenue bonds to make it clear that the benefit provided to society as a whole must extend beyond the mere creation of jobs.

SECTION 2. Section 39A-31, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Public interest" means that which is beneficial to society as a whole, including but not limited to projects that benefit the health, safety, and general welfare of the people of the State or its political subdivisions; provided that these benefits extend beyond the mere creation of jobs."

SECTION 3. Section 39A-71, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 4. Section 39A-111, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 5. Section 39A-151, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 6. Section 39A-191, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 7. Section 39A-221, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 8. Section 39A-251, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 9. Section 39A-281, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 10. Section 39A-311, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 11. Section 39A-341, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

SECTION 12. New statutory material is underscored.

SECTION 13. This Act shall take effect on July 30, 2075.

THE SENATE	S.B. NO.	2406
THIRTY-FIRST LEGISLATURE, 2022		S.D. 1
STATE OF HAWAII