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THE SENATE |
S.B. NO. |
3102 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"(i) The terms of section 201H-36(a)(5) prevailing wages shall be deemed the prevailing wages serving as the basis of compliance with this chapter for work on the project when:
(1) The Hawaii housing finance and
development corporation has approved and certified a qualified person or firm
involved with a newly constructed, or moderately or substantially rehabilitated
project under section 201H-36(a)(5) for exemption from general excise taxes; and
(2) The qualified person or firm that
has entered into a contract with a general contractor or subcontractors [whose
workforce is] shall ensure that all general contractors and
subcontractors working on the project are subject to either:
(A) A collective bargaining agreement with a bona fide labor union for which a section 201H‑36(a)(5) prevailing wage for the laborers and mechanics employed for the construction project has been approved by the director; or
(B) A project labor agreement with the
group whose wages are reflected in the Hawaii prevailing wage schedule for
which section 201H-36(a)(5) prevailing wages for the laborers and mechanics
employed for the construction project have been approved by the director[;
and
(3) The qualified person or firm has
received no other direct or indirect financing for the construction project
from any other governmental contracting agency, including the Hawaii housing
finance and development corporation]."
SECTION 2. Section 201H-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In accordance with section 237-29, the corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or a moderately or substantially rehabilitated, project that is:
(1) Developed under this part;
(2) Developed under a government assistance program approved by the
corporation, including but not limited to the United States Department of
Agriculture's section 502 direct loan program and Federal Housing
Administration's section 235 program;
(3) Developed
under the sponsorship of a private nonprofit organization providing home
rehabilitation or new homes for qualified families in need of decent, low-cost
housing;
(4) Developed
by a qualified person or firm to provide affordable rental housing where at
least fifty per cent of the available units are for households with incomes at
or below eighty per cent of the area median family income as determined by the
United States Department of Housing and Urban Development, of which at least
twenty per cent of the available units are for households with incomes at or
below sixty per cent of the area median family income as determined by the
United States Department of Housing and Urban Development; or
(5) Approved
or certified from July 1, 2018, to June 30, [2030,] 2035, and
developed under a contract described in section 104‑2(i)(2) by a
qualified person or firm to provide affordable rental housing through new
construction or substantial rehabilitation; provided that[:
(A) The allowable general excise tax and
use tax costs shall apply to contracting only and shall not exceed $30,000,000
per year in the aggregate for all projects approved and certified by the
corporation; and
(B) All] all available
units are for households with incomes at or below one hundred forty per cent of
the area median family income as determined by the United States Department of
Housing and Urban Development, of which at least twenty per cent of the
available units are for households with incomes at or below eighty per cent of
the area median family income as determined by the United States Department of
Housing and Urban Development; provided that an owner shall not refuse to lease
a unit solely because the applicant holds a voucher or certificate of
eligibility under section 8 of the United States Housing Act of 1937, as
amended."
SECTION 3. Act 54, Session Laws of Hawaii 2017, as amended by Act 39, Session Laws of Hawaii 2018, is amended by amending section 5 to read as follows:
"SECTION
5. This Act shall take effect on July 1,
2017, and shall be repealed on June 30, [2030;] 2035; provided
that
(1) Section 3 of this Act shall apply to
taxable years beginning after December 31, 2017, but shall not apply to
projects certified or approved after June 30, [2030;] 2035; and
(2) Section 104-2, Hawaii Revised Statutes, and section 201H-36, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act."
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 shall apply to taxable years beginning after December 31, 2024.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
HHFDC; Taxation; GET; Exemption; Contracts; Prevailing Wage
Description:
Extends the Hawaii Housing Finance and Development Corporation approval and certification period in which construction or rehabilitation of certain projects under section 201H-36(a)(5), HRS, can qualify for general excise tax (GET) exemption and repeals the limitation of the costs to contracting, including repealing the $30,000,000 annual cap on allowable GET and use tax costs applicable to contracting under section 201H-36(a)(5), HRS. Repeals the provision prohibiting qualified persons or firms from receiving direct or indirect financing for construction projects from any governmental contracting agency, including HHFDC, as a condition of the section 201H-36(a)(5), HRS, prevailing wage terms.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.