Repeal of Obsolete Statutes

Repeals or makes conforming amendments to various statutes that
have either been repealed by implication, or by their own terms
by operation of law, and are now deemed to be "functus", that is,
have accomplished their intended purpose and are of no further
force or effect.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT


 1      SECTION 1.  The legislature finds that several laws in the
 2 Hawaii Revised Statutes and the Session Laws of Hawaii may now be
 3 deemed to be obsolete, or "functus", in that they have
 4 accomplished their intended purpose and are now of no further
 5 force or effect.  These are not laws that have "dropped dead"
 6 because of a separate sunset section, for example, that provides
 7 for their repeal on a certain date or for their reenactment in a
 8 certain form after a section is repealed.  Rather, these are laws
 9 that have been rendered obsolete by their own terms, such as a
10 sunset provision within the text of the section itself.  These
11 sections are repealed by operation of law but are nevertheless
12 considered to be "on the books" because the acts that enacted
13 them were not themselves repealed.  Other types of obsolete laws
14 that may continue to be on the books are laws that have been
15 repealed by implication in a court case.
16      This Act repeals or makes other appropriate amendments to
17 these sections in order to achieve the intent of the legislature
18 and reduce the number of obsolete laws.  A statute that remains
19 in the printed text of the Hawaii Revised Statutes from year to
20 year but which has been repealed by operation of law or by

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 1 implication unnecessarily increases the size of the Hawaii
 2 Revised Statutes, thereby adding to production costs.  Retention
 3 of such a statute may also create some confusion that the law,
 4 while repealed, is still retained "on the books".  Repealing or
 5 amending these sections, as appropriate, therefore assists in the
 6 removal of obsolete laws and helps to clarify which laws are of
 7 continuing force and effect.
 8                              PART I
 9      SECTION 2.  Section 5 of Act 11, Special Session Laws of
10 1995, enacted the interagency federal revenue maximization
11 revolving fund, which was subsequently codified as section 29-24,
12 Hawaii Revised Statutes.  Both subsection (c) of section 29-24,
13 as well as section 15(3) of Act 11, provided that on June 30,
14 1999, section 29-24 would be repealed.  As such, section 29-24
15 would have been deemed to be repealed by operation of law on that
16 date.
17      However, section 28 of Act 160, Session Laws of Hawaii 1999,
18 which became effective on June 29, 1999, deleted section 15(3) of
19 Act 11, one of the two provisions providing for the repeal of
20 section 29-24.  Sections 29 and 30 of Act 160 further provide for
21 the use of moneys in the interagency federal revenue maximization
22 revolving fund through fiscal year 2000-2001 by the departments
23 of education and health.  While the intent of the 1999 amendment

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 1 was to make section 29-24 permanent, however, that amendment
 2 nevertheless failed to amend section 29-24 itself to remove the
 3 automatic repeal date in subsection (c) of that section.
 4      The purpose of this part is therefore to amend section 29-24
 5 by repealing subsection (c) of that section to conform to the
 6 intent of the 1999 amendment and remove ambiguity as to whether
 7 that section is repealed.
 8      SECTION 3.  Section 29-24, Hawaii Revised Statutes, is
 9 amended to read as follows:
10      "29-24  Interagency federal revenue maximization revolving
11 fund.  (a)  There is established in the state treasury an
12 interagency federal revenue maximization revolving fund into
13 which shall be deposited all funds and proceeds collected from
14 the federal government and third-party payors for costs not
15 previously claimed by the State, with the exception of proceeds
16 collected for services provided by the Hawaii health systems
17 corporation, for reimbursement by federally-funded state
18 programs.  For purposes of this chapter, federally-funded state
19 programs include but shall not be limited to those federally-
20 funded programs within the departments of human services,
21 education, and health.  Expenditures and transfers from the fund
22 shall be made by the comptroller in proportional allocations
23 established by the comptroller and the director of finance.

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 1 Transfers shall be made to the department claiming the
 2 reimbursement for expenses incurred related to federal fund
 3 reimbursement claims and to the general fund of the State.
 4 Moneys in the fund may be expended for consultant services
 5 rendered under subsection (b).
 6      (b)  Notwithstanding any other law to the contrary, the
 7 comptroller, by contract, may retain the services of certified
 8 public accountants and other consultants to pursue and collect
 9 federal fund reimbursements, and perform other duties necessary
10 to administer this section.  At the option of the comptroller,
11 consultants retained by contract under this subsection may be
12 compensated on:
13      (1)  A fixed-price basis;
14      (2)  An hourly rate basis with or without a fixed cap; or
15      (3)  Through a contingent fee arrangement specified in the
16           contract.
17 Such compensation shall be payable out of all sums the consultant
18 recovers for the State.
19      [(c)  All unobligated, unencumbered, or unexpended funds
20 remaining in the interagency federal revenue maximization
21 revolving fund as of June 30, 1999, shall revert to the general
22 fund of the State.  Upon final disbursement of remaining balances
23 to the general fund on June 30, 1999, the interagency federal

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 1 revenue maximization revolving fund shall be terminated.
 2      (d)] (c)  No later than twenty days prior to the convening
 3 of each regular session of the legislature, the comptroller shall
 4 submit to the legislature a report including the following
 5 information:
 6      (1)  Itemized amounts of all federal reimbursements;
 7      (2)  Description and amounts of all expenses incurred by the
 8           fund;
 9      (3)  Method of compensation and amounts of compensation for
10           all certified public accountants and other consultants
11           retained by the comptroller to pursue and collect
12           federal fund reimbursements and perform other duties
13           necessary to administer this section;
14      (4)  Method of determining allocation of funds;
15      (5)  Amounts allocated by the comptroller; and
16      (6)  Fund balances."
17                              PART II
18      SECTION 4.  Subsection (c) of section 87-25.5 provides for
19 the repeal of that section on June 30, 1999.  Since that section
20 was never amended to extend its repeal date, section 87-25.5 was
21 repealed by operation of law on that date.  Accordingly, the
22 purpose of this part is to repeal section 87-25.5.
23      SECTION 5.  Section 87-25.5, Hawaii Revised Statutes, is

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 1 repealed.
 2      ["[87-25.5]  Reciprocal beneficiary family coverage
 3 defined; reciprocal beneficiary employees, State and counties,
 4 and fund responsibility costs.(a)  The board of trustees shall
 5 establish a reciprocal beneficiary family coverage health
 6 benefits plan for an employee who is a reciprocal beneficiary
 7 under chapter 572C and elects to enroll in reciprocal beneficiary
 8 family coverage.
 9      (b)  As used in this section, reciprocal beneficiary family
10 coverage means coverage under a health benefits plan that
11 insures, originally or upon subsequent amendment, an employee who
12 is a reciprocal beneficiary, the other party to the employee's
13 reciprocal beneficiary relationship, and any dependent-
14 beneficiary of the employee, any unmarried child of the non-
15 employee reciprocal beneficiary under age nineteen, or a
16 surviving beneficiary of the employee.
17      (c)  This section shall be repealed on June 30, 1999."]
18                             PART III
19      SECTION 6.  Subsection (g) of section 235-55.9, Hawaii
20 Revised Statutes, provides for the repeal of that section on
21 June 30, 1997.  Since that section was never amended to extend
22 its repeal date, section 235-55.9 was repealed by operation of
23 law on that date.  Accordingly, the purpose of this part is to

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 1 repeal section 235-55.9.
 2      SECTION 7.  Section 235-55.9, Hawaii Revised Statutes, is
 3 repealed.
 4      ["235-55.9  Medical services excise tax credit.(a)  Each
 5 resident individual taxpayer, who files an individual income tax
 6 return for a taxable year, and who is not claimed or is not
 7 otherwise eligible to be claimed as a dependent by another
 8 taxpayer for Hawaii state individual income tax purposes, may
 9 claim a medical services excise tax credit against the resident
10 taxpayer's individual income tax liability for the taxable year
11 for which the individual income tax return is being filed;
12 provided that a resident individual who has no income or no
13 income taxable under this chapter and who is not claimed or is
14 not otherwise eligible to be claimed as a dependent by a taxpayer
15 for Hawaii state individual income tax purposes may claim this
16 credit.
17      (b)  The medical services excise tax credit shall be six per
18 cent of the nursing facilities expenses paid by or for the
19 resident individual during the taxable year.
20      (c)  For the purposes of this section "nursing facility
21 expenses" are amounts actually paid by the taxpayer for services
22 provided to the taxpayer or to any individual who bears a
23 relationship to the taxpayer as described in section 152(a) (with

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 1 respect to dependent defined) of the Internal Revenue Code by a
 2 nursing facility licensed under section 321-9 and 321-11 and any
 3 intermediate care facility for mentally retarded persons under
 4 sections 321-9 and 321-11; provided that the nursing facility
 5 expense was subject to the imposition and payment of the tax
 6 imposed by chapter 346E.
 7      The amount of nursing facility expenses paid during the
 8 taxable year shall not be reduced by any insurance reimbursement.
 9      (d)  The tax credits claimed by a resident taxpayer pursuant
10 to this section shall be deductible from the resident taxpayer's
11 individual income tax liability, if any, for the tax year in
12 which they are properly claimed.  If the tax credits claimed by a
13 resident taxpayer exceed the amount of income tax payment due
14 from the resident taxpayer, the excess of credits over payments
15 due shall be refunded to the resident taxpayer; provided that tax
16 credits properly claimed by a resident individual who has no
17 income tax liability shall be paid to the resident individual;
18 and provided further that no refunds or payment on account of the
19 tax credits allowed by this section shall be made for amounts
20 less than $1.
21      (e)  The director of taxation shall prepare such forms as
22 may be necessary to claim a credit under this section.  The
23 director may also require the taxpayer to furnish reasonable

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 1 information in order that the director may ascertain the validity
 2 of the claim for credit made under this section and the director
 3 may adopt rules necessary to effectuate the purposes of this
 4 section pursuant to chapter 91.
 5      (f)  All claims for tax credits under this section,
 6 including any amended claims, must be filed on or before the end
 7 of the twelfth month following the close of the taxable year for
 8 which the credits may be claimed.  Failure to comply with the
 9 foregoing provision shall constitute a waiver of the right to
10 claim the credit.
11      (g)  This section shall not be effective after June 30,
12 1997."]
13                              PART IV
14      SECTION 8.  In the case of Gardens at West Maui v. County of
15 Maui, 90 H. 334, 978 P.2d 772 (1999), the Hawaii supreme court
16 found section 248-2, Hawaii Revised Statutes, to have been
17 repealed by implication.  That section allows the council of each
18 county to increase or decrease real property taxes in that county
19 for each tax year and provides for a determination of tax rates.  
20      In 1977, section 248-2 was amended to preclude differential
21 tax rates.  However, article VIII, section 3 of the Hawaii
22 Constitution, which expressly transferred to the counties broad
23 powers of real property taxation and which contains no provisions

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 1 limiting or restricting the tax rate structure determined by the
 2 counties, and section 246A-2, Hawaii Revised Statutes, which
 3 implemented that constitutional amendment in 1980, were enacted
 4 subsequent to the 1977 amendment to section 248-2, thereby fully
 5 superseding that section, according to the supreme court.
 6 According to the court:  "The participants of the 1978
 7 constitutional convention and the 1980 legislature are presumed
 8 to have been aware of the 1977 amendment to HRS 248-2 and are
 9 therefore presumed to have repealed it by implication."  Id., 90
10 H. at 341.
11      Because article VIII, section 3 of the Hawaii Constitution
12 and section 246A-2 covered the entire subject of the counties'
13 real property taxation power and embraced the entire law on that
14 matter, section 248-2, by limiting Maui county's real property
15 taxation powers, was found by the court to be in conflict and was
16 repealed by implication.  Accordingly, the purpose of this part
17 is to repeal section 248-2, Hawaii Revised Statutes.
18      SECTION 9.  Section 248-2, Hawaii Revised Statutes, is
19 repealed.
20      ["248-2 Real property tax; determination of rates.(a)
21 The council of each county may increase or decrease the tax rate
22 at which real property in that county shall be taxed for each tax
23 year.  A resolution increasing or decreasing the tax rate in each

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 1 county shall be adopted on or before June 20 preceding the tax
 2 year for which property tax revenues are to be raised according
 3 to the following procedures:
 4      (1)  After determining that any tax rate certified by the
 5           director of taxation under subsection (d) should be
 6           increased or decreased and the date of a public hearing
 7           concerning such determination, the council shall
 8           advertise its intention to increase or decrease the tax
 9           rate and the date, time, and place of the public
10           hearing in a newspaper of general circulation in the
11           county in which the rates are to be increased or
12           decreased.  The date of the public hearing shall be not
13           less than ten days after the advertisement is first
14           published and shall set forth the tax rate to be
15           considered by the council.
16      (2)  After the public hearing provided for in paragraph (1),
17           the council shall readvertise and reconvene within two
18           weeks to adopt a resolution fixing the tax rate for the
19           tax year for which property tax revenues are to be
20           raised.  The advertisement shall state the new rate to
21           be fixed and the amount of the increase or decrease,
22           and the date, time, and place of the public hearing
23           scheduled for fixing such rate.  The date, time, and

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 1           place of the public hearing shall also be announced at
 2           the public hearing required by paragraph (1).  If the
 3           resolution fixing the tax rate is not adopted within
 4           two weeks from the public hearing required by paragraph
 5           (1), the council shall again advertise and meet as
 6           required by paragraph (1).
 7      (3)  If after adopting an increase or decrease in the tax
 8           rate as provided by paragraphs (1) and (2), the council
 9           determines that it requires a further increase or
10           decrease in a tax rate or fails to act in any specified
11           period, the council shall readvertise and follow the
12           requirements of paragraphs (1) and (2).
13      If the council of each county does not increase or decrease
14 the tax rate certified to the council by the director of taxation
15 under subsection (d) as provided in this subsection, the tax rate
16 so certified shall be the tax rate in the county for the tax year
17 for which the property tax revenues are to be raised.
18      (b)  The council of each county shall increase or decrease
19 the tax rate applicable in the county using the following method:
20      (1)  The total revenue to be raised from real property in
21           the county shall be divided by the aggregate value of
22           the taxable real property within the county.  The
23           aggregate value of taxable real property within the

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 1           county shall mean the net assessed value of all real
 2           property in the county as of April 19 preceding the tax
 3           year.  In all cases where appeals from the assessment
 4           of the department of taxation have not yet been finally
 5           determined, the values used in determining the
 6           aggregate shall be the value claimed by the taxpayer in
 7           each case, plus fifty per cent of the value in dispute.
 8      (2)  The rate shall be expressed in terms of the tax per
 9           $1,000 of assessed value of taxable real property in
10           the county, provided that the applicable rate for each
11           county shall be computed to the nearest cent.
12      (c)  If the tax rate for the tax year in any county is
13 increased or decreased, the council shall notify the director of
14 taxation of the increased or decreased rate, and the director
15 shall employ such rate in the levying of property taxes in that
16 county as provided by law.
17      (d)  The director of taxation shall on or before May 1
18 preceding the tax year furnish each council with a calculation
19 certified by the director as being as nearly accurate as may be,
20 of the aggregate value of taxable real property within the county
21 plus such additional data relating to the property tax base as
22 the council may request in writing.  In addition, the director
23 shall certify to the council of each county, the tax rate for the

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 1 forthcoming tax year in each county by determining such tax rate
 2 by the method established in subsection (b) and by using the
 3 aggregate value of taxable real property within the county for
 4 the forthcoming year and the county's real property revenues for
 5 the current year.  Upon its determination such tax rate shall be
 6 the tax rate for the county for the forthcoming tax year, unless
 7 the county increases or decreases the tax rate as provided in
 8 subsection (a).
 9      (e)  Insofar as the validity of any tax rate is concerned,
10 the provisions of subsections (a) and (d) of this section as to
11 dates, shall be deemed directory; provided that all other
12 provisions of subsections (a) and (d) and all provisions of
13 subsections (b) and (c) shall be deemed mandatory.
14      (f)  Notwithstanding any provision to the contrary, there
15 shall be levied upon each individual parcel of real property
16 taxable under chapter 246 a minimum real property tax of $7 a
17 year."]
18                              PART V
19      SECTION 10.  If any provision of this Act, or the
20 application thereof to any person or circumstance is held
21 invalid, the invalidity does not affect other provisions or
22 applications of the Act which can be given effect without the
23 invalid provision or application, and to this end the provisions

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 1 of this Act are severable.
 2      SECTION 11.  Statutory material to be repealed is bracketed.
 3 New statutory material is underscored.
 4      SECTION 12.  This Act shall take effect upon its approval.
 6                              INTRODUCED BY:______________________