Hawaii 2024 Regular Session

Hawaii House Bill HB750 Compare Versions

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11 HOUSE OF REPRESENTATIVES H.B. NO. 750 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to dam and APPURTENANCE safety. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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33 HOUSE OF REPRESENTATIVES H.B. NO. 750
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3131 A BILL FOR AN ACT
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4343 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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4747 SECTION 1. The legislature finds that some plantation era reservoirs across the State, including locations on Maui county, are on lands sold by plantation landowners to developers. Following the sale, developers constructed subdivisions, often including dams and appurtenances, including reservoirs and spillways, within deeds to the homeowners or a homeowner's association. However, the dams and appurtenances located on the subdivision are not properly maintained. During periods of extreme weather, the surrounding neighborhoods face significant risks from flooding. Despite potential hazards posed by the dams and appurtenances, the department of land and natural resources consider the dams and appurtenances to be privately owned and the responsibility of homeowners or homeowner's associations to maintain proper safety standards. Costly permits are required to conduct repairs or removal, which results in dams and appurtenances remaining in an unsafe state. Therefore, the purpose of this Act is to: (1) Establish a dam and appurtenance improvement loan program for eligible expenses relating to plans, design, construction, and equipment used to improve deficient dams and appurtenances as determined by the department of land and natural resources; (2) Establish a dam and appurtenance improvement revolving fund to deposit proceeds from the dam and appurtenance improvement loan program; (3) Establish a dam and appurtenance improvement grant program to provide private dam or appurtenance owners with funds for plans, design, construction, and equipment used to improve deficient dams and appurtenances as determined by the department of land and natural resources; and (4) Establish a dam and appurtenance improvement tax credit for qualifying expenditures for the improvement of deficient dams and appurtenances. SECTION 2. Chapter 179D, Hawaii Revised Statutes, is amended by adding three new sections to part II to be appropriately designated and to read as follows: "§179D- Dam and appurtenance improvement loan program. (a) There is established a dam and appurtenance improvement loan program, which shall be a loan program as defined under section 39-51. The program shall be administered by the department in a manner consistent with chapter 39, part III. (b) Loans shall be used for plans, design, construction, and equipment that is utilized to improve deficient high hazard and significant hazard dams and appurtenances as determined by the department. Loans shall not exceed $ for a term not to exceed forty years. (c) All loans approved and administered by this section shall require board approval and shall be subject to conditions imposed by the board. §179D- Dam and appurtenance improvement grant program. (a) There is established a dam and appurtenance improvement grant program, to be developed and administered by the department for the improvement of deficient dams in the State. (b) The dam and appurtenance improvement grant program shall provide funding to private dam owners for plans, design, construction, and equipment that is used to improve deficient dams and appurtenances as determined by the department. (c) Grants awarded under the program shall not exceed $ . All awards shall be approved by the board prior to disbursement and shall be subject to conditions imposed by the board. (d) The department may award grants based on criteria that shall be developed by the department. Applicants shall meet the following requirements: (1) The applicant shall be an owner of a high hazard or significant hazard dam or appurtenance that is regulated under this chapter; (2) The applicant shall be the owner of a regulated dam or appurtenance that has been determined to have one or more deficiencies; provided that priority shall be given to dams or appurtenances rated to be in poor or unsatisfactory condition; (3) The applicant shall indicate on the application that the proposed plans, design, construction, and equipment shall be intended for remediation of the dam or appurtenance and not seek to remove the dam or appurtenance; (4) If the applicant is an organization, the entity shall: (A) Be licensed to conduct business in the State of Hawaii; and (B) Have bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflict of interest situations; (5) The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law; (6) The grant shall not be used for purposes of entertainment or perquisites; (7) All activities and improvements undertaken with funds received shall comply with applicable federal, state, and county statutes and ordinances, including applicable building codes and agency rules; (8) The applicant shall agree to make available to the department all records the applicant may have relating to the grant and allow state agencies to monitor the applicant's compliance with the purpose of this chapter; (9) The applicant shall establish, to the satisfaction of the department, that sufficient funds are available for the completion of plans, design, and construction, or equipment needed for the purpose for which the grant is awarded; and (10) The applicant shall comply with other requirements or conditions as the department or board may prescribe. §179D- Dam and appurtenance improvement revolving fund. (a) There is established within the state treasury a revolving fund to be known as the dam and appurtenance improvement revolving fund, which shall be administered by the department and into which shall be deposited all revenues from the dam and appurtenance improvement loan program and appropriations made by the legislature to the fund. (b) Moneys from the fund shall be expended by the department to support the awarding of loans or grants under the dam and appurtenance improvement loan or grant program for eligible private dam and appurtenance owners." SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235- Dam and appurtenance improvement tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit that shall be deductible from the taxpayer's net income liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. (b) The tax credit shall be in an amount equal to per cent of the qualified dam and appurtenance improvement costs incurred during the taxable year for which the credit is claimed. (c) The cost upon which the tax credit is computed shall be determined at the entity level. In the case of a partnership, S corporation, estate, trust, or other pass through entity, distribution and share of the credit shall be determined pursuant to section 235-110.7(a). If a deduction is taken under section 179 (with respect to election to expense depreciable business assets) of the Internal Revenue Code, no tax credit shall be allowed for that portion of the qualified dam and appurtenance improvement costs for which a deduction was taken. The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed. No deduction shall be allowed for that portion of otherwise deductible qualified dam and appurtenance improvement costs on which a credit is claimed under this section. (d) If the credit under this section exceeds the taxpayer's net income tax liability for the taxable year, the excess of the credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the credits allowed by this section shall be made for amounts less than $1. All claims for a tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit is claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit. (e) The director of taxation: (1) Shall prepare any forms that may be necessary to claim a credit under this section; (2) May require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section; and (3) May adopt rules pursuant to chapter 91 to effectuate this section. (f) The department of land and natural resources shall: (1) Maintain records of the total amount of qualified dam and appurtenance improvement costs for each taxpayer claiming a credit; (2) Verify the amount of the qualified dam and appurtenance improvement costs claimed; (3) Total all qualified dam and appurtenance improvement costs claimed; and (4) Certify the total amount of the tax credit for each taxable year. Upon each determination, the department of land and natural resources shall issue a certificate to the taxpayer verifying the qualifying dam and appurtenance improvement costs and the credit amount certified for each taxable year. For a taxable year, the department of land and natural resources may certify a credit for a taxpayer who could have claimed the credit in a previous taxable year, but chose not to because the maximum annual credit amount under subsection (g) was reached in that taxable year. The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation. Notwithstanding the department of land and natural resources' certification authority under this section, the director of taxation may audit and adjust certification to conform to the facts. Notwithstanding any other law to the contrary, the information required by this subsection shall be available for public inspection and dissemination under chapter 92F. (g) The department of land and natural resources may certify tax credits allowed under this section in a total amount not to exceed $ in any calendar year. (h) For purposes of this section, "qualified dam and appurtenance improvement costs" means plans, design, construction, and equipment that is used to improve deficient dams and appurtenances necessary to bring such structures up to code, as determined by the department of land and natural resources." SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the dam and appurtenance improvement revolving fund. SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment of three full-time equivalent (3.0 FTE) positions in the department of land and natural resources, to include the following: (1) One planner position; (2) One business loan officer position; and (3) One accountant position. The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act. SECTION 6. New statutory material is underscored. SECTION 7. This Act shall take effect on July 1, 2023. INTRODUCED BY: _____________________________
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4949 SECTION 1. The legislature finds that some plantation era reservoirs across the State, including locations on Maui county, are on lands sold by plantation landowners to developers. Following the sale, developers constructed subdivisions, often including dams and appurtenances, including reservoirs and spillways, within deeds to the homeowners or a homeowner's association.
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5151 However, the dams and appurtenances located on the subdivision are not properly maintained. During periods of extreme weather, the surrounding neighborhoods face significant risks from flooding. Despite potential hazards posed by the dams and appurtenances, the department of land and natural resources consider the dams and appurtenances to be privately owned and the responsibility of homeowners or homeowner's associations to maintain proper safety standards. Costly permits are required to conduct repairs or removal, which results in dams and appurtenances remaining in an unsafe state.
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5353 Therefore, the purpose of this Act is to:
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5555 (1) Establish a dam and appurtenance improvement loan program for eligible expenses relating to plans, design, construction, and equipment used to improve deficient dams and appurtenances as determined by the department of land and natural resources;
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5757 (2) Establish a dam and appurtenance improvement revolving fund to deposit proceeds from the dam and appurtenance improvement loan program;
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5959 (3) Establish a dam and appurtenance improvement grant program to provide private dam or appurtenance owners with funds for plans, design, construction, and equipment used to improve deficient dams and appurtenances as determined by the department of land and natural resources; and
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6161 (4) Establish a dam and appurtenance improvement tax credit for qualifying expenditures for the improvement of deficient dams and appurtenances.
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6363 SECTION 2. Chapter 179D, Hawaii Revised Statutes, is amended by adding three new sections to part II to be appropriately designated and to read as follows:
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6565 "§179D- Dam and appurtenance improvement loan program. (a) There is established a dam and appurtenance improvement loan program, which shall be a loan program as defined under section 39-51. The program shall be administered by the department in a manner consistent with chapter 39, part III.
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6767 (b) Loans shall be used for plans, design, construction, and equipment that is utilized to improve deficient high hazard and significant hazard dams and appurtenances as determined by the department. Loans shall not exceed $ for a term not to exceed forty years.
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6969 (c) All loans approved and administered by this section shall require board approval and shall be subject to conditions imposed by the board.
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7171 §179D- Dam and appurtenance improvement grant program. (a) There is established a dam and appurtenance improvement grant program, to be developed and administered by the department for the improvement of deficient dams in the State.
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7373 (b) The dam and appurtenance improvement grant program shall provide funding to private dam owners for plans, design, construction, and equipment that is used to improve deficient dams and appurtenances as determined by the department.
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7575 (c) Grants awarded under the program shall not exceed $ . All awards shall be approved by the board prior to disbursement and shall be subject to conditions imposed by the board.
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7777 (d) The department may award grants based on criteria that shall be developed by the department. Applicants shall meet the following requirements:
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7979 (1) The applicant shall be an owner of a high hazard or significant hazard dam or appurtenance that is regulated under this chapter;
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8181 (2) The applicant shall be the owner of a regulated dam or appurtenance that has been determined to have one or more deficiencies; provided that priority shall be given to dams or appurtenances rated to be in poor or unsatisfactory condition;
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8383 (3) The applicant shall indicate on the application that the proposed plans, design, construction, and equipment shall be intended for remediation of the dam or appurtenance and not seek to remove the dam or appurtenance;
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8585 (4) If the applicant is an organization, the entity shall:
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8787 (A) Be licensed to conduct business in the State of Hawaii; and
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8989 (B) Have bylaws or policies that describe the manner in which business is conducted, prohibit nepotism, and provide for the management of potential conflict of interest situations;
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9191 (5) The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;
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9393 (6) The grant shall not be used for purposes of entertainment or perquisites;
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9595 (7) All activities and improvements undertaken with funds received shall comply with applicable federal, state, and county statutes and ordinances, including applicable building codes and agency rules;
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9797 (8) The applicant shall agree to make available to the department all records the applicant may have relating to the grant and allow state agencies to monitor the applicant's compliance with the purpose of this chapter;
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9999 (9) The applicant shall establish, to the satisfaction of the department, that sufficient funds are available for the completion of plans, design, and construction, or equipment needed for the purpose for which the grant is awarded; and
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101101 (10) The applicant shall comply with other requirements or conditions as the department or board may prescribe.
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103103 §179D- Dam and appurtenance improvement revolving fund. (a) There is established within the state treasury a revolving fund to be known as the dam and appurtenance improvement revolving fund, which shall be administered by the department and into which shall be deposited all revenues from the dam and appurtenance improvement loan program and appropriations made by the legislature to the fund.
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105105 (b) Moneys from the fund shall be expended by the department to support the awarding of loans or grants under the dam and appurtenance improvement loan or grant program for eligible private dam and appurtenance owners."
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107107 SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
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109109 "§235- Dam and appurtenance improvement tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit that shall be deductible from the taxpayer's net income liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
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111111 (b) The tax credit shall be in an amount equal to per cent of the qualified dam and appurtenance improvement costs incurred during the taxable year for which the credit is claimed.
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113113 (c) The cost upon which the tax credit is computed shall be determined at the entity level. In the case of a partnership, S corporation, estate, trust, or other pass through entity, distribution and share of the credit shall be determined pursuant to section 235-110.7(a).
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115115 If a deduction is taken under section 179 (with respect to election to expense depreciable business assets) of the Internal Revenue Code, no tax credit shall be allowed for that portion of the qualified dam and appurtenance improvement costs for which a deduction was taken.
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117117 The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed. No deduction shall be allowed for that portion of otherwise deductible qualified dam and appurtenance improvement costs on which a credit is claimed under this section.
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119119 (d) If the credit under this section exceeds the taxpayer's net income tax liability for the taxable year, the excess of the credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the credits allowed by this section shall be made for amounts less than $1.
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121121 All claims for a tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit is claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
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123123 (e) The director of taxation:
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125125 (1) Shall prepare any forms that may be necessary to claim a credit under this section;
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127127 (2) May require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section; and
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129129 (3) May adopt rules pursuant to chapter 91 to effectuate this section.
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131131 (f) The department of land and natural resources shall:
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133133 (1) Maintain records of the total amount of qualified dam and appurtenance improvement costs for each taxpayer claiming a credit;
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135135 (2) Verify the amount of the qualified dam and appurtenance improvement costs claimed;
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137137 (3) Total all qualified dam and appurtenance improvement costs claimed; and
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139139 (4) Certify the total amount of the tax credit for each taxable year.
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141141 Upon each determination, the department of land and natural resources shall issue a certificate to the taxpayer verifying the qualifying dam and appurtenance improvement costs and the credit amount certified for each taxable year. For a taxable year, the department of land and natural resources may certify a credit for a taxpayer who could have claimed the credit in a previous taxable year, but chose not to because the maximum annual credit amount under subsection (g) was reached in that taxable year.
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143143 The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation. Notwithstanding the department of land and natural resources' certification authority under this section, the director of taxation may audit and adjust certification to conform to the facts.
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145145 Notwithstanding any other law to the contrary, the information required by this subsection shall be available for public inspection and dissemination under chapter 92F.
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147147 (g) The department of land and natural resources may certify tax credits allowed under this section in a total amount not to exceed $ in any calendar year.
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149149 (h) For purposes of this section, "qualified dam and appurtenance improvement costs" means plans, design, construction, and equipment that is used to improve deficient dams and appurtenances necessary to bring such structures up to code, as determined by the department of land and natural resources."
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151151 SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the dam and appurtenance improvement revolving fund.
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153153 SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment of three full-time equivalent (3.0 FTE) positions in the department of land and natural resources, to include the following:
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155155 (1) One planner position;
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157157 (2) One business loan officer position; and
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159159 (3) One accountant position.
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161161 The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.
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163163 SECTION 6. New statutory material is underscored.
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165165 SECTION 7. This Act shall take effect on July 1, 2023.
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169169 INTRODUCED BY: _____________________________
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171171 INTRODUCED BY:
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173173 _____________________________
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179179 Report Title: Dam and Reservoirs; Revolving Fund; Grant Program; Loan Program; Tax Credit; Appropriation Description: Establishes the dam and appurtenance loan and grant programs for plans, design, construction, and equipment that is used to improve deficient dams and appurtenances as determined by the Department of Land and Natural Resources and approved by the Board of Land and Natural Resources. Specifies eligibility requirements for dam and appurtenance improvement grants. Establishes the dam and appurtenance improvement tax credit for expenditures for dam and appurtenance improvements that bring dams and appurtenances up to code. Appropriates funds. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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185185 Report Title:
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187187 Dam and Reservoirs; Revolving Fund; Grant Program; Loan Program; Tax Credit; Appropriation
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191191 Description:
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193193 Establishes the dam and appurtenance loan and grant programs for plans, design, construction, and equipment that is used to improve deficient dams and appurtenances as determined by the Department of Land and Natural Resources and approved by the Board of Land and Natural Resources. Specifies eligibility requirements for dam and appurtenance improvement grants. Establishes the dam and appurtenance improvement tax credit for expenditures for dam and appurtenance improvements that bring dams and appurtenances up to code. Appropriates funds.
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201201 The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.