Report Title:

Economic development; military communities

Description:

Establishes the Military Community Infrastructure Development Revolving Loan Fund to help military communities develop infrastructure to minimize the possibility of or the adverse effects of the closure or reduction in capacity of a military installation on the military community.

HOUSE OF REPRESENTATIVES

H.B. NO.

2662

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to economic development.

 

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

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

"Chapter

Economic development for military communities

"§ -1 Definitions. For the purposes of this chapter:

"Department" means the department of business, economic development, and tourism.

"Director" means the director of business, economic development, and tourism.

"Military community" means persons in a geographical area within three miles of a military installation.

"Military installation" includes any military base, airport, camp, post, station, yard, center, home-port facility for a ship, or any other military activity center that is under the jurisdiction of the United States Department of Defense.

"Person" means an individual, corporation, or partnership, and an organization or association, whether or not incorporated.

§ -2 Military community infrastructure development revolving loan fund. (a) There is established the military community infrastructure development revolving loan fund, into which shall be deposited all moneys appropriated by the legislature to the fund, contributed or transferred to the fund, and received as payment of loans and interest payments as provided in this chapter, and from which the director may make loans in accordance with this chapter.

(b) The revolving loan fund may be used only for loans made under this chapter.

(c) The department may accept gifts or grants from any source for the purposes of this chapter. The department shall deposit gifts or grants to the credit of the revolving loan fund.

(d) All unexpended and unencumbered moneys remaining in the military community infrastructure development revolving loan fund at the close of each fiscal year, which are deemed by the director of finance to be in excess of the moneys necessary to carry out the purposes of this chapter over the next following fiscal year, shall lapse to the credit of the general fund.

(e) Twenty days prior to the convening of each regular session of the legislature, the director shall report to the legislature any transfer of funds made during the current calendar year and the balance of the revolving loan fund as of December 31 of each year.

§ -3 Loans; conditions. (a) The department shall administer the military community infrastructure development revolving loan fund for assistance to persons in military communities to develop infrastructure to minimize the possibility of or mitigate the adverse effects of the closure or reduction in capacity of a military installation on the military community. The loans may be granted to persons in a military community before the military installation is closed.

(b) The department may make and condition loans from the revolving loan fund that shall:

(1) Be made at or below market interest rates;

(2) Require periodic payments of principal and interest with repayment commencing not later than one year after completion of the project for which the loan is made; and

(3) Be fully amortized not later than twenty years after completion of the project.

§ -4 Rules. The director shall adopt rules to:

(1) Carry out the purposes of this chapter; and

(2) Establish criteria and procedures for the evaluation of applications for loans under this chapter, including categories of eligible infrastructure projects for which a military community may apply for a loan."

SECTION 2. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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