Report Title:

Impact Fees; State Highways

Description:

Authorizes department of transportation and the counties to assess impact fees to help pay for highway improvements to serve new developments.

HOUSE OF REPRESENTATIVES

H.B. NO.

60

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to impact fees.

 

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

SECTION 1. This Act authorizes the department of transportation to assess impact fees on new development to help pay for state highway improvements needed to serve that development. This Act also clarifies county authority to assess impact fees for state highway improvements. Proposed amendments to county impact fee statutes are retroactive so that no questions arise concerning city and county of Honolulu Ordinance No. 02-52, "Relating to Impact Fees for Traffic and Roadway Improvements in Ewa", which took effect on October 30, 2002.

SECTION 2. Chapter 264, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART  . IMPACT FEES

§264-   Definitions. As used in this part, unless the context requires otherwise:

"Capital costs" means part or all of the cost for capital improvements. Capital costs may include costs to acquire rights-of-way, plan, design, engineer, finance, and construct improvements, including costs of administration, management, and consultant fees. Capital costs shall not include periodic maintenance and other operating costs.

"Credits" means a reduction in the assessment of impact fees.

"Department" means the department of transportation.

"Developer" means a person, corporation, organization, partnership, association, or other legal entity constructing, erecting, enlarging, or altering any structure or engaging in any other development activity.

"Development" means any grading or construction for which a county or state agency requires a grading or building permit.

"Director" means the director of transportation.

"Impact fee" means an assessment on new development used to incrementally fund a fair share of the public capital improvements reasonably needed to serve that development.

"State highway improvements" means capital improvements to the physical infrastructure of state highways.

§264-   Authority to assess impact fees. The department may assess, impose, levy, and collect impact fees for any development within the State.

§264-   Highway needs assessment. (a) In each region where impact fees are proposed, before assessing impact fees, the department shall first approve a highway needs assessment to justify the need for impact fees.

(b) Each highway needs assessment shall:

(1) Use an appropriate methodology to estimate traffic that will be generated or attracted by existing and anticipated future development;

(2) Use an appropriate methodology to determine the capacity of existing regional highway facilities and the need for state highway improvements;

(3) Use an appropriate methodology to estimate the capital costs of state highway improvements needed to accommodate projected future traffic; and

(4) Use an appropriate methodology to estimate how much of the capital costs for needed state highway improvements might fairly be assessed to anticipated future development in the region where impact fees are proposed.

§264-   Assessment of impact fees. In any region where the department has approved a highway needs assessment, the department may assess impact fees, by adoption of rules, to require developers to contribute a fair share of the capital costs of state highway improvements needed to serve their development, provided that:

(1) The rules may limit maximum impact fees to prevent economic impacts inconsistent with state policy;

(2) The rules shall establish reasonable geographic limitations on the collection and expenditure of impact fees;

(3) The rules shall list proposed state highway improvements that justify collection and expenditure of impact fees;

(4) The rules shall include a process for determining credits when a developer funds or constructs proposed state highway improvements;

(5) The rules shall require periodic reevaluation of the need, geographic limitations, use, and amount of impact fees; and

(6) The rules shall establish an administrative process by which a developer may contest the amount of impact fees assessed.

§264-   Highway development special fund. (a) There is established in the state treasury the highway development special fund, into which shall be deposited:

(1) Impact fees collected under this part; and

(2) Interest from investment of deposits.

(b) Moneys in the highway development special fund shall be used for the following purposes:

(1) Capital costs of proposed state highway improvements that justify collection of impact fees;

(2) Reevaluation of the need, geographic limitations, amount, and use of impact fees;

(3) Transfers to reimburse other special funds for expenditures that otherwise might have been funded with moneys in the highway development special fund;

(4) Transfers under sections 36-27 and 36-30, Hawaii Revised Statutes; and

(5) Administrative costs for collection of impact fees.

(c) The department may establish accounts in the highway development special fund as necessary to implement this part and rules adopted by the department.

§264-   Refund of impact fees. Upon the request of a developer or the developer's successor in title, the department shall refund impact fees not expended or encumbered within six years of collection under this part for purposes established under this part.

§264-   Payment a prerequisite for county permits. Full payment of impact fees owed to the department shall be a condition precedent to county issuance of a grading or building permit for development that has been assessed impact fees under this part. No grading or building permit issued in violation of this section shall be valid or grant any rights for development.

§264-   Administrative appeals. By adoption of rules, the department may establish procedures and time limits for administrative appeals of the department's actions under this part.

§264-   Adoption of rules. The department shall adopt necessary rules to implement this part under chapter 91.

§264-   County ordinances and rules. No county shall assess impact fees for state highway improvements without the director's consent.

§264-   Limitations on actions. A civil lawsuit contesting an action by the department or a county under this part or under part VIII of chapter 4 shall be filed within sixty calendar days of the date of the action."

SECTION 3. Section 46-143, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

"(c) The pro rata amount of each impact fee shall be based upon the development and actual capital cost of public facility expansion, or a reasonable estimate thereof, to be incurred [by the county or board].

(d) An impact fee shall be substantially related to the needs arising from the development and shall not exceed a proportionate share of the costs incurred or to be incurred [by the county or the board] in accommodating the development. The following seven factors [shall] may be considered [in determining a proportionate share of public facility capital improvement costs:] when enacting or adopting impact fees:

(1) The level of public facility capital improvements required to appropriately serve a development, based on a needs assessment study that identifies:

(A) Deficiencies in existing public facilities;

(B) The means, other than impact fees, by which existing deficiencies will be eliminated within a reasonable period of time; and

(C) Additional demands anticipated to be placed on specified public facilities by a development;

(2) The availability of other funding for public facility capital improvements, including but not limited to, user charges, taxes, bonds, intergovernmental transfers, and special taxation or assessments;

(3) The cost of existing public facility capital improvements;

(4) The methods by which existing public facility capital improvements were financed;

(5) The extent to which a developer required to pay impact fees has contributed in the previous five years to the cost of existing public facility capital improvements and received no reasonable benefit therefrom, and any credits that may be due to a development because of such contributions;

(6) The extent to which a developer required to pay impact fees over the next twenty years may reasonably be anticipated to contribute to the cost of existing public facility capital improvements through user fees, debt service payments, or other payments, and any credits that may accrue to a development because of future payments; and

(7) The extent to which a developer is required to pay impact fees as a condition precedent to the development of non-site related public facility capital improvements[, and any offsets payable to a developer because of this provision]."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon approval; provided that section 3 of this Act shall be retroactively effective as of October 1, 2002.

INTRODUCED BY:

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