Report Title:

Revenue Bonds; Improvements to State Parks

Description:

Authorizes the issuance of revenue bonds to finance State Park improvements, including the removal of non-compliance cesspools, with debt service being paid by transient accommodation tax revenues through the State Parks Special Fund and matching funds from the Special Land and Development Fund.

THE SENATE

S.B. NO.

2698

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to state parks.

 

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

SECTION 1. The United States Environmental Protection Agency's underground injection control program (EPA Program) regulates large capacity cesspools to protect underground sources of drinking water from contamination. Large capacity cesspools are included in the category of 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 EPA Program, which is authorized by the Safe Drinking Water Act, existing cesspools are to be phased out by April 2005.

The legislature finds that the EPA Program will cause major problems in Hawaii's state parks if restrooms are closed because cesspools are no longer allowed. The department of land and natural resources estimates forty to fifty cesspools in the state parks will have to be replaced with compliance-systems at a cost of $9,000,000 to $11,000,000. Unless the replacement of the state park's cesspools can be accomplished in a timely manner, Hawaii's residents will be deprived of the use of those state facilities. The legislature further finds that state parks constitute a valuable and necessary component in the success of the State's tourism industry.

The legislature also finds that $900,000 in transient accommodations tax revenues are deposited into the state parks special fund annually. 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 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 further finds that the transient accommodations tax revenues deposited in the state parks special fund and the special land and development fund can provide sufficient funds to pay the debt service and associated costs for revenue bonds to address the problems facing the state parks, including the phasing-out of cesspools.

The purpose of this Act is to:

(1) Authorize the department of land and natural resources to issue $11,000,000 in revenue bonds for the design and construction for the removal of cesspools, improvements, and renovation to state park facilities, including sewage disposal systems and upgrading bathroom facilities and other related improvements;

(2) Authorize the payment of debt service on these state parks revenue bonds with transient accommodations tax funds through the state parks special fund with matching funds from the special land and development fund; and

(3) Expand permissible expenditures of transient accommodations tax revenues in the state parks special fund to include the payment of debt service on revenue bonds.

SECTION 2. Section 184-3.4, Hawaii Revised Statutes, is amended to read as follows:

"184-3.4 State parks special fund. (a) There is established within the state treasury a fund to be known as the state parks special fund, into which shall be deposited:

(1) All proceeds collected by the state parks programs involving park user fees, any leases or concession agreements, the sale of any article purchased from the department to benefit the state parks programs, or any gifts or contributions; provided that proceeds derived from the operation of Iolani Palace shall be used to supplement its educational and interpretive programs; and

(2) Transient accommodations tax revenues pursuant to section 237D-6.5(b)(2); provided that these moneys shall be expended [in]:

(A) In response to a master plan developed in coordination with the Hawaii tourism authority[.]; and

(B) For the payment of debt service on revenue bonds issued by the department and the establishment of debt service and other reserves deemed necessary by the board.

(b) The department shall expend the moneys from the state parks special fund for the following purposes:

(1) Permanent and temporary staff positions;

(2) Planning and development of state parks programs, including the aina hoomalu state parks program;

(3) Construction, repairs, replacement, additions, and extensions of state parks facilities;

(4) The payment of debt service on revenue bonds issued by the department and the establishment of debt service and other reserves deemed necessary by the board;

[(4)] (5) Operation and maintenance costs of state parks and state parks programs; and

[(5)] (6) Administrative costs of the division of state parks."

SECTION 3. Pursuant to section 171-6(16) and chapter 39, part III, the department of land and natural resources, with the approval of the governor, is authorized to issue in one or more series revenue bonds in a total amount not to exceed $11,000,000 for the purpose of design and construction for the removal of cesspools, improvements, and renovation to state park facilities, including sewage disposal systems and upgrading bathroom facilities and other related improvements; provided that the debt service and other associated costs of the revenue bonds shall be paid by the transient accommodations tax portion in the state parks special fund; provided further that no funds from the state parks special fund shall be expended unless matched on a dollar-for-dollar basis from the transient accommodations tax portion in the special land and development fund.

SECTION 4. The authorization to issue revenue bonds under this Act shall lapse on June 30, 2007.

SECTION 5. There is appropriated out of the transient accommodations tax revenue portion of the state parks special fund the sum of $ or so much thereof as may be necessary for fiscal year 2004-2005 for the payment of debt service and associated costs of the state parks revenue bonds issued by this Act.

SECTION 6. There is appropriated out of the transient accommodations tax revenue portion of the special land and development fund the sum of $ or so much thereof as may be necessary for fiscal year 2004-2005 for the payment of debt service and associated costs of the state parks revenue bonds issued by this Act.

SECTION 7. The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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