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Government Affairs Update May 2, 2008
ONLINE VERSIONS 2) Bills that passed the legislature 3) Bills that did not pass the legislature
BILLS THAT PASSED THE LEGISLATURE BUSINESS H.B. 2224 Relating to Insurance Description: Requires group health issuers to offer small group health plans to self-employed individuals who are registered or licensed by the Department of Commerce and Consumer Affairs. It creates limits on timing of enrollment and reenrollment to control adverse selection and plan costs. It is a pilot project and will be repealed on July 1, 2013. Position: SUPPORT. In December 2007, an important membership survey was circulated to assess the needs of health insurance for REALTORS. The response rate was about 20 percent or almost 2,000 members. Of the respondents, 18 percent did not have insurance at all. And, they expressed a sincere desire to enroll in health plans that offer a benefit package, cost sharing, and premium rates that are comparable to what are offered to employees in group plans. This bill will allow providers to create a “group type” package of benefits for sole proprietors and self employed.
H.B. 2326 Relating to Mortgages Description: Enacts a new chapter, known as the “Mortgage Rescue Fraud Prevention Act”, to regulate distressed property consultants and their practices and contracts. It requires mortgage foreclosure rescuers to provide specific information and disclosures to distressed property owners and imposes specific prohibitions on mortgage foreclosure rescuers. Position: SUPPORT. HAR supports the protection of Hawaii consumers from persons who prey on homeowners facing property foreclosures, liens, or encumbrances. This bill will provide some protection for vulnerable homeowners by requiring that they be provided with adequate disclosures prior to signing a contract.
H.B. 2492 Relating to Planned Community Associations Description: Requires the minutes of meetings of the board of directors for a planned community association to record the vote of each board member present on all motions except motions voted upon in executive session and requires the inclusion of property restrictions or conditions of use in a seller's disclosure statement. Position: SUPPORT. The bill was originally introduced to require sellers of residential real property to disclose all restrictions or conditions on use relating to the property and contained in a recorded document, including any unrecorded rules or guidelines issued by any entity responsible for enforcing the restrictions or conditions. Although we supported and advocated for this portion, HAR takes no position to the requirement of board member votes, which was inserted during a committee hearing.
H.B. 2894 Relating to Planned Community Associations Description: Allows for the restatement of planned community association documents. Position: MONITOR. The bill ensures that planned community associations are able to effectively enforce assessments and restrictive covenants. It also entitled them to the rights and protections provided under the law.
HOUSING S.B. 644 Relating to Energy Resources Description: Prohibits issuance of a building permit on or after January 1, 2010 for single-family residences that do not include a solar water heater system that meets the standards set by the Public Utilities Commission and provides that renewable energy technologies tax credits for systems installed and placed in service in 2009 for single-family residential properties may not be claimed by residential home developers. Position: CONCERN. This mandate shifts energy policy away from government investment via tax credits to private sector investment in renewable energy. This mandate will merely add to the up-front cost of new residential dwellings, making the purchase for first time home buyers even more of a challenge.
S.B. 2933 Relating to Household Energy Demand Description: Allows for the use of clotheslines on any privately owned single-family residential dwelling and townhouse. Position: CONCERN. The bill unduly interferes with the governance of homeowners associations and imposes a mandate to disregard what may be existing contracts and bylaws. Without protective covenants, some communities adorned with clothes would not only hurt the beauty of the community and the enjoyment of residents, but also would adversely affect tourism. Accordingly, this permitted use will not be applicable for condominium property regimes.
S.B. 2293 Relating to Affordable Housing Description: New multi-family housing condominium developments of seventy-five units or more shall: (1) be exempt from the corporation's shared appreciation equity program; (2) be subject to three-year occupancy requirements and transfer restrictions; provided that the three-year occupancy requirement shall begin upon the sale of each unit; and (3) not be subject to the ten-year occupancy requirements and transfer restrictions. Position: MONITOR. Affordable housing for Hawaii residents and the local workforce are in a critical short supply. The bill eliminates requirements for multi-family housing developments that are on privately owned land, using private financing.
S.B. 3174 Relating to Affordable Housing Description: Increases the Hula Mae multifamily revenue bond authorization from $400,000 to $500,000. Position: SUPPORT. It will increase the availability aggregate principal amount of revenue bonds issued by the Hawaii Housing Finance and Development Corporation’s housing loan and mortgage program. Hula Mae Multi-Family Program promotes the development of new or the preservation and rehabilitation of existing affordable rental housing projects.
H.B. 2460 Relating to Condominiums Description: Allows condominium associations to invest funds in certificates of deposit through the Certificate of Deposit Account Registry Service network Position: COMMENT. HAR questioned the necessity of the bill as condominium associations are already investing funds in Certificate of Deposit Account Registry Service. This bill aims at clarifying any misperceptions on the investment of funds.
H.B. 3331 Relating to Condominiums Description: Specifies dispute resolution parameters related to the interpretation or enforcement of a condominium association's bylaws, house rules, or certain other matters and allows parties whose dispute is not resolved by mediation to file for arbitration or a hearing by the Department of Commerce and Consumer Affairs no sooner than 30 days from the termination date of mediation. It is a pilot project and will be repealed on June 30, 2009. Position. MONITOR. This bill makes a few amendments to the dispute resolution procedures relating to the interpretation or enforcement of a condominium association's declaration, bylaws, house rules, or certain other matters. LAND USE H.B. 2293 Relating to Agriculture Description: Establishes various provisions and mechanisms to allow the Agribusiness Development Corporation to acquire lands owned by the Galbraith Estate on Oahu. Position. MONITOR. It authorizes the Agribusiness Development Corporation to negotiate an agreement to acquire the Galbraith Lands. It an agreement is not reached within a reasonable time, it requires the Department of Land and Natural Resources to exercise eminent domain to acquire the Galbraith Lands.
H.B. 2450 Relating to Land Use Description: Establishes conditions for the granting of approval of petitions for boundary amendments where lands in the petition area are contiguous or adjacent to lands in the agricultural districts. Position: MONITOR. The bill was originally introduced as a 300 ft. “no-build” buffer zone bordering any farming operation. Upon hearing, it was amended to require notification to any reclassification. Specifically, if the Land Use Commission receives a request to reclassify a land district to an urban or rural district designation that is contiguous to an existing designated agricultural district, it will be required to inform the applicant requesting the reclassification of the presence of the existing agricultural and contiguous agricultural district.
S.B. 988 Relating to Photovoltaic Energy Description: Authorizes the public utilities commission to establish a ratepayer-funded photovoltaic rebate program. Position. MONITOR. Photovoltaic, or PV for short, is a technology that converts light directly into electricity. This bill authorizes the Public Utilities Commission to establish a ratepayer-funded photovoltaic rebate program. As opposed to a tax credit, this is a direct rebate to customers to reduce the initial system cost, which runs about $5,000.
S.B. 2198 Relating to Land Conservation Description: Provides a tax credit to encourage the preservation and protection of conservation land in the State. Position: MONITOR. The bill provides an incentive for private landowners to protect precious lands and offers an alternative to acquisition and government management. It will encourage the protection and preservation of land in the State by establishing a Land Conservation Incentives Tax Credits. It allows the holder of an interest in agricultural land that qualifies for the land conservation incentives tax credit to petition the Land Use Commission to designate agricultural lands as important agricultural lands.
S.B. 2423 Relating to Land Acquisition Description: Directs the governor, or the governor's designee, to acquire lands owned by Kuilima Resort Company, Oaktree Capital, LLC, and their successors in interest, commonly known as Turtle Bay Hotel and Resort located in Kahuku, Oahu. Position. MONITOR. It authorizes the Governor to negotiate on behalf of the State with private interested parties to purchase the resort property located in Kahuku, Oahu owned by Oaktree Capital Management, LLC, through its subsidiary Kuilima Resort Company and their successor in interest. The subject property under negotiation includes the lands known as the Turtle Bay Hotel and Resort.
S.B. 2646 Relating to Important Agricultural Lands Description: Limits important agricultural land farm dwellings to landowners, employees and their immediate families, “who actively and currently farm on important agricultural lands”; provides qualified agricultural tax credits to sustain viable agricultural operations; initiates IAL designation process by private landowners and State & County lands; authorizes Department of Agriculture to manage, administer and exercise control over public lands; and expedites State Land Use Commission process for the designation of 85% important agricultural lands and reclassification of 15% other lands which are consistent with County plans Position: SUPPORT. HAR encourages incentives for the preservation of important agricultural lands and the long term expansion of agriculture in Hawaii. Over the past two sessions, legislation has been introduced to create incentives to promote agriculture viability in Hawaii. In addition, attempts were also made to have the Counties enact incentives to promote agricultural viability. Neither of these efforts has resulted in meaningful incentives being put in place to stimulate interest in designating important agricultural lands.
S.B. 2808 Relating to Environmental Impact Statement Description: Clarifies that when 2 or more agencies have jurisdiction, the office of environmental quality control shall determine which agency has the responsibility of preparing an environmental assessment after consultation with and assistance from the affected state or county agencies. Position: SUPPORT. A recent court decision resulted in unintended consequences impacting every development and construction project in the State that abuts a public roadway – installation of easements, access improvements, or service connections – which would trigger environmental impact assessment. The bill would allow the Office of Environmental Quality Control to take a clear, large role in determining if and when an environmental assessment is required.
TAXATION
For the most current and detailed information on bills, go to http://www.capitol.hawaii.gov for bill status and descriptions. |
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