Bill Text: HI SB77 | 2019 | Regular Session | Amended
Bill Title: Relating To Capital Improvement Projects.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-03-21 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; Representative(s) D. Kobayashi voting no (1) and Representative(s) Belatti, Cabanilla Arakawa, Holt, Tokioka, Yamane excused (5). [SB77 Detail]
Download: Hawaii-2019-SB77-Amended.html
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THE SENATE |
S.B. NO. |
77 |
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THIRTIETH LEGISLATURE, 2019 |
S.D. 3 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CAPITAL IMPROVEMENT PROJECTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Section 1. The legislature finds that the Ala Wai canal and the surrounding watersheds must be fortified in order to prevent major flooding in Honolulu's urban core. According to the United States Army Corps of Engineers, a major flood could damage three thousand structures, require more than $1,000,000,000 in repairs, and severely impact on Hawaii's economy. The 2003 Economic Contribution of Waikiki Report indicated that in 2002, Waikiki-based visitor activity accounted for $3,600,000,000, or forty-six per cent, of the tourism industry's total contribution to the gross state product. Due to the potential impact that flooding could have on the economy, the legislature finds that the Ala Wai flood risk management project is in the public interest and is necessary for the health, safety, and general welfare of the State.
The legislature further finds that the project will cost $345,000,000, and the United States Congress has appropriated $345,000,000 for the project but requires a thirty-five per cent match by a local entity. Although this project is under county jurisdiction, the legislature has been requested to allocate matching funds to ensure the health, safety, and general welfare of the State.
The purpose of this Act is to establish a financing mechanism to satisfy the federal requirement that thirty-five percent of the Ala Wai flood risk management project costs be funded by a local entity through:
(1) Establishment of general terms of a financing agreement entered into pursuant to chapter 37D, Hawaii Revised Statutes, and requiring the city and county of Honolulu to enter into the project partnership agreement with the United States Army Corps of Engineers and to accept all the project features identified in the Ala Wai flood risk management project upon completion; or
(2) An appropriation to the department of budget and finance, based upon the United States Army Corps of Engineers' cost payment plan, for the Ala Wai flood risk management project.
SECTION 2. (a) Any financing agreement entered into by the State relating to the Ala Wai flood risk management project, and any certificate of participation issued thereunder, shall be subject to chapter 37D, Hawaii Revised Statutes, and this section.
(b) The State's obligation to make payments under any financing agreement entered into pursuant to subsection (a) shall be subject to, and be payable solely from, moneys appropriated by the legislature. No financing agreement shall obligate the legislature to appropriate or make moneys available for any payments under any financing agreement.
(c) No obligation to make payments under any financing agreement shall be secured by the full faith and credit of the State.
(d) No financing agreement or related certificate of participation shall:
(1) Constitute bonds under the Hawaii State Constitution;
(2) Count towards the total amount of outstanding state general obligation bonds; or
(3) Require the issuance by the State of future general obligation bonds authorized under the Hawaii State Constitution.
SECTION 3. 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 2019-2020 for the Ala Wai flood risk management project.
The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act; provided that the department of budget and finance shall not expend the funds if a financing agreement pursuant to section 2 of this Act is entered into by .
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Capital Improvement Projects; Ala Wai Canal; Financing Agreement; Appropriation
Description:
Establishes two financing options for the State to select from to satisfy the federal requirement that thirty-five percent of Ala Wai Flood Risk Management Project costs be funded by a local entity. The first is a financing agreement that does not obligate the State beyond funds appropriated by the Legislature and the second is an appropriation of general funds. Takes effect 7/1/2050. (SD3)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
