Report Title:

Parks; Bonds

Description:

Authorizes the director of finance and also the department of land and natural resources to issue revenue bonds for removal of cesspools from state parks and related improvements.

HOUSE OF REPRESENTATIVES

H.B. NO.

2060

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

AUTHORIZING THE ISSUANCE OF REVENUE BONDS FOR STATE PARKS CESSPOOL PROJECTS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The United States Environmental Protection Agency's underground injection control program regulates large capacity cesspools in order to protect underground sources of drinking water from contamination. Large capacity cesspools are included in class V injection wells and are generally located in unsewered areas where the population is also likely to depend on ground water for its drinking water. Under the new requirements of the underground injection control program, which is authorized by the Safe Drinking Water Act, existing cesspools are to be phased out by April, 2005.

The requirement of the underground injection control program will cause major problems in Hawaii's state parks if restrooms have to be closed because cesspools will no longer be allowed. The department of land and natural resources estimates that there are forty to fifty cesspools in its state parks and the cost to replace them with complying systems is nine million to eleven million dollars. Unless the replacement of state parks cesspools can be accomplished in a timely manner, Hawaii's residents and visitors will be deprived of the use of those state park facilities.

The legislature finds that nine hundred thousand dollars in transient accommodations tax revenues is deposited into the state parks special fund annually. The legislature finds that moneys in the special land and development fund can be used for the "planning, development, management, operations, or maintenance of all lands and improvements under the control and management" of the board of land and natural resources, and that the fund may also be used for the payment of debt service on revenue bonds issued by the department of land and natural resources.

The legislature finds that, if a portion of the transient accommodations tax revenues deposited into the state parks special fund is matched with funds from the special land and development fund, sufficient revenues would be available for the authorizing of revenue bonds to address the problem being faced by the department of land and natural resources with the impending closing of cesspools in Hawaii's state parks.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $5,500,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated from the state parks special fund from the portion of the transient accommodations tax revenues deposited into the fund, and the sum of $5,500,000, or so much thereof as may be necessary, is appropriated from the special land and development fund as matching funds, for the fiscal year 2004-2005, for the design and construction for the removal of cesspools, improvements and renovations to state park facilities, including sewage disposal systems, the upgrade of bathroom facilities, and other related improvements.

SECTION 3. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2007, shall lapse as of that date.

SECTION 4. The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 5. The department of land and natural resources is authorized to issue revenue bonds for state parks cesspools projects authorized and listed in section 2 of this Act and designated to be financed by revenue bond funds with debt service cost to be paid from a portion of the transient accommodations tax revenues deposited into the state parks special fund, with matching funds from the special land and development fund. The principal amount of the bonds shall be sufficient to yield the amounts appropriated for those capital improvements, and, if so determined by the department and approved by the governor, such additional amounts as may be deemed necessary by the department to pay interest on the revenue bonds during the construction period of the capital improvement projects for which the revenue bonds are issued, to establish, maintain, or increase reserves for the state parks revenue bonds, and to pay the expenses for the issuance of the bonds. The state parks revenue bonds shall be issued pursuant to part III of chapter 39, Hawaii Revised Statutes, as it may be amended from time to time. The principal of and interest on the state parks revenue bonds, to the extent not paid from the proceeds of those bonds, shall be payable solely from and secured solely by a portion of the transient accommodations tax revenues deposited into the state parks special fund and matching funds from the special land and development fund. The expenses of the issuance of the state parks revenue bonds, to the extent not paid from the proceeds of those bonds, shall be paid from the state parks special fund and the special land and development fund.

SECTION 6. This Act shall take effect on July 1, 2004, only if H.B. No.      in any form passed by the legislature, regular session of 2004, becomes an Act.

INTRODUCED BY:

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