Hawaii-2024-SB2980-Introduced

PART I

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

CULTURAL CORRIDOR AUTHORITY

PART I. GENERAL PROVISIONS

§ -1 Findings and purpose. The legislature finds that areas of the State affected by disaster often require substantial and immediate attention directed towards recovery, remediation, and preservation prior to the initiation of any redevelopment. The purpose of this chapter is to establish the cultural corridor authority, a public entity that shall determine a shared vision of a path forward for areas of the State affected by disaster. The shared vision should focus on community, historic, and cultural preservation, with cooperation among members of the affected community, private enterprise, and the various components of federal, state, and county governments in bringing mutually agreed upon redevelopment plans to fruition.

The legislature finds that the creation of the cultural corridor authority, the establishment of cultural corridor districts, and authority to issue bonds pursuant to this chapter to finance public facilities within designated districts serve the public interest and are matters of statewide concern.

§ -2 Definitions. As used in this chapter, the following terms have the following meanings, unless the context indicates a different meaning or intent:

"Authority" means the cultural corridor authority established by section -3.

"County" means any county of the State.

"Disaster" means any emergency that results in loss of life, property, or environment and requires, or may require, assistance from other counties, states, the federal government, or from private agencies.

"Emergency" means any occurrence that results in substantial injury or harm to the population or substantial damage to or loss of property or substantial damage to or loss of the environment.

"Local governing body" means the county council.

"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the authority, including a commercial project, a redevelopment project, or a residential project, all as defined as follows, or any combination thereof, which combination shall hereinafter be called and known as a "multipurpose project".

As used in this definition:

(1) "Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed-use development where commercial or light industrial facilities may be built into, adjacent to, under, or above residential units;

(2) "Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, and rehabilitation, or a combination of these and other methods, of an area for a residential project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this chapter. The terms "acquisition, clearance, replanning, reconstruction, and rehabilitation" shall include renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof; and

(3) "Residential project" means a project or that portion of a multipurpose project, including residential dwelling units, designed and intended for the purpose of providing housing and any facilities as may be incidental or appurtenant thereto.

"Project cost" means the total of all costs incurred by the authority in carrying out all undertakings that it deems reasonable and necessary for the development of a project, including but not limited to: studies; surveys; plans; specifications; architectural, engineering, or any other development related services; acquisition of land and any improvement thereon; site preparation and development; construction; reconstruction; rehabilitation; the necessary expenses in administering the chapter; the cost of financing the project; and relocation costs.

"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

"Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in the district, sites for schools, parks, parking garage, sidewalks, pedestrian ways, and other community facilities. "Public facilities" shall also include public highways, as defined by statute, storm drainage systems, water systems, street lighting systems, off‑street parking facilities, and sanitary sewerage systems.

"Qualified person" includes any individual, partnership, corporation, or any public agency possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible resources, required for the purposes of the project and other qualifications as may be deemed desirable by the authority in administering this chapter.

"Real property" means lands, structures, and interests in land, including lands under water and riparian rights, space rights, and air rights and any and all other things and rights usually included within the term. Real property also means any and all interests in the property less than full title, such as easements, incorporeal hereditaments, and every estate, interest, or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages, or otherwise.

§ -3 Cultural corridor authority; established. (a) There is established the cultural corridor authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.

(b) The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a cultural corridor district is located or the director's designee; a cultural specialist; an at-large member nominated by the president of the senate; an at-large member nominated by the speaker of the house of representatives; and two representatives of each cultural corridor district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district.

All members except the director of finance, director of transportation, county directors of planning or planning and permitting, director of business, economic development, and tourism, chairperson of the board of land and natural resources, or their respective designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each cultural corridor district. For each cultural corridor district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.

If a vacancy occurs, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources; or their respective designees shall run concurrently with each official's term of office. The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30. The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years.

The governor may remove or suspend for cause any member after due notice and public hearing.

Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation.

(c) The authority shall appoint the executive director who shall be the chief executive officer. The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.

(d) The authority shall annually elect the chairperson and vice chairperson from among its members.

(e) The members of the authority appointed under subsection (b) shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

§ -4 Powers; generally. Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(4) Make and alter bylaws for its organization and internal management;

(5) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

(7) Prepare or cause to be prepared a cultural corridor plan for all designated cultural corridor districts;

(8) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

(9) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

(10) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on terms and conditions as it deems advisable;

(13) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify the plans, specifications, designs, or estimates;

(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(15) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(16) Contract for and accept gifts or grants in any form from any public agency or from any other source; and

(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter.

§ -5 Transition; district redevelopment plan. (a) For the authority's initial district, the authority shall have a transition period of two years beginning July 1, 2025. During the transition period, the authority shall develop a plan to redevelop the Lahaina cultural corridor district established in section -31. The district plan shall:

(1) Identify the area of the Lahaina cultural corridor district;

(2) Be finalized, approved, and operational by the end of the transition period;

(3) Focus on historic and cultural preservation of the district;

(4) Consider the State's energy and sustainability goals, as well as impacts to climate change, including adapting to climate change and developing mitigation measures to climate change; and

(5) Prepare for and establish the framework, criteria, and procedures for any condemnation, purchase, or receipt of lands, including land exchanges.

(b) During the transition period, the authority may take any actions necessary to prepare for the redevelopment of the Lahaina cultural corridor district.

§ -6 Designation of cultural corridor districts; redevelopment plans. (a) The legislature, by statute, may designate an area as a cultural corridor district if it determines that the area has been affected by disaster and in need of substantial redevelopment. The designation shall describe the boundaries of the district.

(b) After designation, the authority shall develop a redevelopment plan for the designated district. The plan shall include but not be limited to redevelopment guidance policies, district-wide improvement program, and redevelopment rules.

(c) The authority may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate for the development of the redevelopment plan.

(d) Whenever possible, planning activities of the authority shall be coordinated with federal, state and county plans. Consideration shall be given to state goals and policies, adopted state plan or land use guidance policies, county general plans, development plans, and ordinances.

(e) The authority shall hold a public hearing on a proposed redevelopment plan pursuant to chapter 91 and, after consideration of comments received and appropriate revision, shall submit the redevelopment plan to the governor for the governor's approval.

After approval, the governor shall submit to the legislature requests for appropriations, authorization to issue bonds, or both, to implement the redevelopment plan in an orderly, affordable, and feasible manner. The governor shall submit the requests to the legislature as part of the executive budget or supplemental budget, as appropriate. In addition to the information, data, and materials required under chapter 37, the requests shall be accompanied by:

(1) Plans, maps, narrative descriptions, and other appropriate materials on the:

(A) Locations and design of projects or public facilities proposed to be funded; and

(B) Phase of the redevelopment plans proposed to be implemented with the requested funds; and

(2) Other information deemed by the governor of significance to the legislature regarding the projects or public facilities proposed to be funded, including a discussion of the public benefits intended by, and adverse effects that may result from, implementation of the projects or public facilities.

(f) The authority may amend the redevelopment plan as may be necessary. Amendments shall be made in accordance with chapter 91.

§ -7 Community boards; establishment. (a) The authority shall establish a community board for each cultural corridor district to assist and make recommendations to the authority regarding the development of district redevelopment plans.

(b) Each community board shall consist of seven to thirteen members; provided that two-thirds of the members shall be residents of the cultural corridor district and its surrounding area.

(c) The members of the community board shall not be compensated for their services but shall be reimbursed for necessary expenses, including travel expenses, incurred while engaged in business for the community board.

(d) The authority may adopt rules in accordance with chapter 91 with respect to the establishment of the community boards, including rules concerning the composition, eligibility, selection, and term of members.

§ -8 District-wide improvement program. (a) The authority shall develop a district-wide improvement program to identify necessary district-wide public facilities within a cultural corridor district.

(b) Whenever the authority shall determine to undertake, or cause to be undertaken, any public facility as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the cultural corridor district specially benefiting from the public facilities. The authority shall determine the areas of the cultural corridor district that will benefit from the public facilities to be undertaken and, if less than the entire cultural corridor district benefits, the authority may establish assessment areas within the cultural corridor district. The authority may issue and sell bonds in amounts authorized by the legislature to provide funds to finance the public facilities. The authority shall fix the assessments against real property specially benefited. All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid and the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien.

(c) Bonds issued to provide funds to finance public facilities shall be secured solely by the real properties benefited or improved, the assessments thereon, or by the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued according and subject to rules adopted pursuant to this section.

(d) Any other law to the contrary notwithstanding, in assessing real property for public facilities, the authority shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the public facilities. These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method which assesses the real property according to the special benefit conferred, or any combination thereof. No assessment levied against real property specially benefited as provided by this chapter shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.

(e) The authority shall adopt rules pursuant to chapter 91, and may amend the rules from time to time, providing for the method of undertaking and financing public facilities in an assessment area or an entire cultural corridor district. The rules adopted pursuant to this section shall include, but are not limited to, the following: methods by which the authority shall establish assessment areas; the method of assessment of real properties specially benefited; the costs to be borne by the authority, the county in which the public facilities are situated, and the property owners; the procedures before the authority relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices; provisions relating to assessments; provisions relating to financing, such as bonds, special funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of bonds; provisions relating to funds and refunding of outstanding debts; and provisions relating to limitations on time to sue, and other related provisions.

(f) Notwithstanding any law to the contrary, the authority, in its discretion, may enter into any agreement with the county in which the public facilities are located, to implement all or part of the purposes of this section.

(g) All sums collected under this section shall be deposited in the cultural corridor special fund established by section -18; except that notwithstanding section -18, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bonds chargeable against that fund, it shall be credited to and become a part of the cultural corridor special fund. Moneys in the cultural corridor special fund may be used to make up any deficiencies in the special fund.

(h) If the public facilities to be financed through bonds issued by the authority may be dedicated to the county in which the public facilities are to be located, the authority shall ensure that the public facilities are designed and constructed to meet county requirements.

(i) Notwithstanding any law to the contrary, whenever as part of a district-wide improvement program it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and properties that may specially benefit from such improvement, if any. In determining the allocation of cost, the authority shall consider the cost allocation policies for improvement districts established by the county in which the removal, relocation, replacement, or reconstruction is to take place.

§ -9 Cultural corridor district redevelopment rules. (a) The authority shall establish cultural corridor district redevelopment rules under chapter 91 on health, safety, building, planning, zoning, and land use which, upon final adoption of a redevelopment plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon. Rules adopted under this section shall follow existing law, rules, ordinances, and regulations as closely as is consistent with standards meeting minimum requirements of good design, pleasant amenities, health, safety, and coordinated development. The authority, in the redevelopment plan or by a cultural corridor district redevelopment rule, may provide that lands within a cultural corridor district shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or provide other restrictions on the use of the lands.

(b) Development rights under a master plan permit and master plan development agreement issued and approved by the authority are vested under the cultural corridor district rules in effect at the time of initial approval by the authority and shall govern development on lands subject to the permit and agreement.

§ -10 Use of public lands; acquisition of state lands. (a) If state lands under the control and management of other public agencies are required by the authority for its purposes, the agency having the control and management of those required lands, upon request by the authority and with the approval of the governor, may convey or lease the lands to the authority upon terms and conditions as may be agreed to by the parties.

(b) Notwithstanding the foregoing, no public lands shall be conveyed or leased to the authority as above provided if the conveyance or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or the county, department, or board.

§ -11 Acquisition of real property from a county. Notwithstanding the provision of any law or charter, any county, by resolution of its local governing body, without public auction, sealed bids, or public notice, may sell, lease for a term not exceeding sixty-five years, grant or convey to the authority any real property owned by it that the authority certifies to be necessary for its purposes. The sale, lease, grant, or conveyance shall be made with or without consideration and upon any terms and conditions as may be agreed upon by the county and the authority. Certification shall be evidenced by a formal request from the authority. Before the sale, lease, grant, or conveyance may be made to the authority, a public hearing shall be held by the local governing body to consider the same. Notice of the hearing shall be published at least ten days before the date set for the hearing in a publication and in a manner as may be designated by the local governing body.

§ -12 Condemnation of real property. The authority upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this chapter, may acquire the property by condemnation pursuant to chapter 101, including property already devoted to a public use. The property shall not thereafter be taken for any other public use without the consent of the authority. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of a cultural corridor district or plan adopted pursuant to a designation, or the actual or proposed acquisition, use or disposition of any other real property by the authority.

§ -13 Construction contracts. The authority shall award construction contracts in conformity with the applicable provisions of chapter 103D.

§ -14 Dedication for public facilities as condition to development. The authority shall establish rules requiring dedication for public facilities of land or facilities, or cash payments in lieu thereof, by developers as a condition of developing real property pursuant to the redevelopment plan. Where state and county public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail.

§ -15 Public projects. Any project or activity of any county or agency of the State in a designated district shall be constructed, renovated, or improved in consultation with the authority.

§ -16 Sale or lease of redevelopment projects. (a) The authority, without recourse to public auction, may sell, or lease for a term not exceeding sixty-five years, all or any portion of the real or personal property constituting a redevelopment project to any person, upon any terms and conditions as may be approved by the authority, if the authority finds that the sale or lease is in conformity with the redevelopment plan.

(b) In the case of residential projects or redevelopment projects, the terms of the sale shall provide for the repurchase of the property by the authority at its option, if the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the redevelopment plan. The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not being limited to interest rates, land values, construction costs, and federal tax laws.

If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section.

§ -17 Residential projects; cooperative agreements. If the authority deems it desirable to develop a residential project, it may enter into an agreement with qualified persons to construct, maintain, operate, or otherwise dispose of the residential project. Sale, lease, or rental of dwelling units in the project shall be as provided by the rules established by the authority.

§ -18 Cultural corridor special fund. There is created the cultural corridor special fund into which all receipts and revenues of the authority shall be deposited. Proceeds from the fund shall be used for the purposes of this chapter.

§ -19 Exemption from taxation. The authority shall not be required to pay assessments levied by any county, nor shall the authority be required to pay state taxes of any kind.

§ -20 Assistance by state and county agencies. Any state or county agency may render services upon request of the authority.

§ -21 Annual report. The authority shall submit to the governor and the legislature, at least twenty days prior to the start of any regular session, a complete and detailed report of its activities.

§ -22 Court proceedings; preferences; venue. (a) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be brought in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.

(b) Upon application of counsel to the authority, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the authority may be allowed to intervene.

(c) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter or any portion of this chapter, may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.

(d) Notwithstanding any provision of law to the contrary, declaratory relief may be obtained for the action.

(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority.

§ -23 Issuance of bonds. The director of finance, from time to time, may issue general obligation bonds pursuant to chapter 39 in amounts as may be authorized by the legislature, for the purposes of this chapter.

PART II. LAHAINA CULTURAL CORRIDOR DISTRICT

§ -31 Lahaina cultural corridor district; findings and purposes. The legislature finds that the Lahaina cultural corridor district is in need of substantial redevelopment due to damage caused by the 2023 Maui wildfires.

The purposes of the district shall include:

(1) The restoration of the Lahaina community;

(2) The fostering of cultural practice and education;

(3) The restoration of Mokuula, including the restoration of a healthy water ecosystem;

(4) The development of a memorial; and

(5) Establishment of a shoreline setback.

§ -32 District; established, boundaries. The Lahaina cultural corridor district is established. The district shall include the area determined by the authority during the transition period pursuant to section -5."

PART II

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Voluntary relinquishment of real property affected by disasters; income tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for the assessed value of real property relinquished by the entity for the taxable year. The assessed value upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule.

(c) The tax credit shall be equal to the value of real property located in an area affected by a disaster, as assessed by county officials, relinquished by the taxpayer to the county within which the real property is located.

(d) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.

(e) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(f) As used in this section:

"Emergency" means any occurrence that results in substantial injury or harm to the population or substantial damage to or loss of property or substantial damage to or loss of the environment."

PART III

SECTION 3. (a) The attorney general shall commence eminent domain proceedings to acquire privately-owned real property located in areas affected by disaster for purposes of redevelopment and historic and cultural preservation; provided that the attorney general shall only initiate eminent domain proceedings pursuant to this section on privately-owned properties for which the private owner has expressed interest in disposing of the property.

(b) As used in this section:

"Emergency" means any occurrence that results in substantial injury or harm to the population or substantial damage to or loss of property or substantial damage to or loss of the environment.

SECTION 4. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriations made in this Act are necessary to serve the public interest and to meet the needs provided for by this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the development of a district redevelopment plan pursuant to section -5, Hawaii Revised Statutes.

The sum appropriated shall be expended by the cultural corridor authority for the purposes of this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for eminent domain proceedings to acquire privately-owned real property located in areas affected by disaster for purposes of redevelopment and historic and cultural preservation.

The sum appropriated shall be expended by the department of the attorney general for the purposes of this Act.

PART IV

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval; provided that:

(1) Part II shall apply to taxable years beginning after December 31, 2023; and

(2) Sections 5 and 6 shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2980
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII