RELATING TO TAX INCREMENT BONDS.

SB3270

THE SENATE

S.B. NO.

3270

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to tax increment bonds
.

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

����
SECTION
1
.
�
Section 47C-1, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�47C-1
�

Definitions.
�
As used in
sections 47C-1 through 47C-6, the following words and terms shall have the
following meanings or inclusions:

����
"Chairperson
of the finance committee" shall mean the chairperson of the finance
committee of the council of the county, or if the council of the county does
not have a finance committee, the member of the council appointed by the
council to perform the functions required by this chapter to be performed by
the chairperson of the finance committee of the council.

����
"Corporation
counsel" shall mean the chief legal advisor or legal representative of the
county.

����
"County"
shall include each county of the State, including the city and county of
Honolulu.

����
"Director
of finance" shall mean the director of finance of the county, or if the
county does not have a director of finance, the officer of the county in whom
is vested the functions and powers of maintaining the treasury of the county
and issuing and selling, paying interest on, and redeeming bonds of the county.

����
"Fiscal
year" shall mean the fiscal year of the county as defined in section
46-41.

����
"Special
assessment bonds" shall mean bonds issued under special improvement
statutes when the only security for [
such
]
special assessment

bonds is the assessments or special taxes levied and assessed under those
statutes or properties subject to the assessments or special taxes.

����
As
used in sections 47C-1 through 47C-6, the words or terms "bonds",
"general obligation bonds", "net revenue", "net user
tax receipts", "reimbursable general obligation bonds",
"revenue bonds", "special purpose revenue bonds",
"tax
increment bonds",
and "user tax" shall have the respective
meanings and inclusions given to [
such
]
those
words and terms in
section 12 of article VII of the constitution."

����
SECTION

2
.
�
Section 47C-2,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�47C-2
�

Determination of funded debt.
�

Within ninety days after the first day of each fiscal year, the director
of finance of each county shall ascertain and set forth in a tabular summary
the total indebtedness of the county outstanding and unpaid as of the first day
of [
such
]
that
fiscal year.
�

The summary shall include the following:

����
(1)
�
An itemization of the total principal
amount of all general obligation bonds, reimbursable general obligation bonds,
revenue bonds, special assessment bonds, special purpose revenue bonds, and all
other bonds of the county outstanding and unpaid, including bonds [
which
]

that
may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, [
and
] 9
,
and 10
of section 13 of article VII of the constitution when determining
the funded debt of the county for the purposes of that section
,
together
with a grand total of [
such
]
the
total principal amounts[
.
]
;

����
(2)
�
The total principal amount of all bonds
of the State required by clause (7) of section 13 of article VII of the
constitution to be included when determining the funded debt of the county for
the purposes of that section[
.
]
;

����
(3)
�
A grand total of the total principal
amounts set forth in the summary pursuant to paragraphs (1) and (2)[
.
]
;

����
(4)
�
An itemization of the total of the
principal amount of all general obligation bonds, reimbursable general
obligation bonds, revenue bonds, special assessment bonds, and special purpose
revenue bonds of the county outstanding and unpaid [
which
]
that

may be excluded under clauses 1, 2, 3, 4, 5, 6, 8, and 9 of section 13
�
of article VII of the constitution when
determining the total funded debt of the county for the purposes of that
section, together with a grand total of [
such
]
the
total
principal amounts[
.
]
; and

����
(5)
�
The difference between the grand total
principal amount set forth in the summary pursuant to paragraph (3) and
the grand total principal amount set forth in the summary pursuant to paragraph
(4).

����
The
director of finance shall also prepare and attach to the tabular summary [
such
]
supporting schedules as may be required to set forth in detail the bonds
included in the itemizations required by paragraphs (1) and (4).
�
[
Such
]
The
supporting schedules
shall also set forth or make reference to the relevant statutory, charter,
ordinance, or other legal provision, and the relevant figures of
the tax
increment as defined in section 46-102,
assessment collections, revenues,
user tax receipts, cost of operation, maintenance and repair, net revenues, net
user tax receipts, reimbursements to the general fund, and other financial
information, justifying the inclusion of [
such
]
the
bonds in the
itemization required by paragraph (4).
�

The director of finance shall indicate in the supporting schedules
whether the financial findings and figures are based upon the records of the
director's office or upon audited statements and reports, and if based upon the
latter, shall identify in the schedules the audited reports and
statements."

����
SECTION

3
.
�
Section 47C-3,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�47C-3
�

Supplemental determination.
�

Whenever the county proposes to issue bonds, the director of finance
shall prepare a supplemental summary of the indebtedness of the county setting
forth therein [
such
] information and findings as of a date within thirty
days of the delivery of [
such
]
the
bonds as will bring up to date
and make current the most recent summary prepared in accordance with the
provisions of section 47C-2.
�
The
director of finance shall also prepare and attach to [
such
]
the

supplemental summary [
such
] supporting schedules as may be required to
set forth in detail the variations and changes from the summary prepared in
accordance with section 47C-2, including [
such
] legal and financial
findings as will justify any changes in the itemizations set forth in [
such
]

the
previous summary pursuant to the requirements of paragraph (4) of
section 47C-2.
�
If all the bonds proposed
to be issued may be excluded when determining the funded debt of the county for
the purposes of section 13 of article VII of the constitution by reason of the
provisions of clauses 2 [
or
]
,
4
, or 10
of that section,
the supplemental summary and supporting schedules may be limited to [
such
]

those
bonds and findings as are necessary to justify [
such
]
the

exclusion under [
such
]
those
clauses.

����
In
the event proceeds of the bonds proposed to be issued are to be applied to the
retirement in the then fiscal year of outstanding bonds, including notes issued
in anticipation of the issuance of the bonds proposed to be issued, for the
purpose of applying the provisions of clause 1 of section 13 of article VII of
the constitution to the bonds to be retired, that amount of [
such
]
proceeds to be so applied may be considered and treated as moneys irrevocably
set aside for the payment of [
such
]
those
bonds."

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

����
SECTION
5.
�
This Act shall take effect upon its
approval and upon ratification of a constitutional amendment expressly
providing that the legislature may authorize the counties to issue tax
increment bonds and excluding tax increment bonds from determinations of the
funded debt of the counties.

INTRODUCED BY:

_____________________________

Report Title:

Tax Increment Bonds; County Debt Limit Statements;
Statutory Amendments

Description:

Conforms
county debt limit statements law to permit counties to exclude tax increment
bonds from the debt limit of the counties if a constitutional amendment
authorizing the use of tax increment bonds and excluding tax increment bonds
from determinations of the counties' funded debt is ratified.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.