§163D-8  Project facility program.  (a) 
The corporation may develop a project to identify necessary project facilities
within a project area.



(b)  Unless and except as otherwise provided by
law, whenever the corporation undertakes, or causes to be undertaken, any
project facility as part of a project, the cost of providing the project
facilities shall be assessed against the real property in the project area
specially benefiting from the project facilities.  Subject to the express
written consent of the landowners directly affected, the corporation shall
determine the properties that will benefit from the project facilities to be
undertaken and may establish assessment areas that include the properties
specially benefiting from the project facilities.  The corporation may issue
and sell bonds in such amounts as may be authorized by the legislature to
provide funds to finance the project facilities.  The corporation shall fix the
assessments against the real property specially benefited.



(c)  Unless and except as otherwise provided by
law, the corporation may adopt rules pursuant to chapter 91 to establish the
method of undertaking and financing project facilities in a project area.



(d)  Unless and except as otherwise provided by
law, bonds issued to provide funds to finance project facilities shall be
secured solely by the real properties benefited or improved and the assessments
thereon, or by the revenues derived from the project for which the bonds were
issued, including reserve accounts and earnings thereon, insurance proceeds,
and other revenues, or any combination thereof.  The bonds may be additionally
secured by the pledge or assignment of loans and other agreements or any note
or other undertaking, obligation, or property held by the corporation.  The
bonds shall be issued according to and subject to the rules adopted pursuant to
this section.  Any other law to the contrary notwithstanding, in assessing real
property for project facilities, the corporation shall assess the real property
within a project area according to the special benefits conferred upon the real
property by the project facilities.  These methods may include assessment on a
frontage basis or according to the area of real property within a project area,
or any other assessment method that assesses the real property according to the
special benefit conferred, or any combination thereof.  No such assessment
levies against real property specially benefited under this chapter shall
constitute a tax on real property within the meaning of any law.



(e)  The rules adopted pursuant to this section
may include, but are not limited to:



(1)  The methods of establishing assessment areas
within a project area;



(2)  The method of assessing real properties specially
benefited;



(3)  The costs to be borne by the corporation, the
county in which the project facilities are situated, and the property owners;



(4)  The procedures before the corporation relating to
the creation of the assessment areas by the owners of real property therein,
including provisions for petitions, bids, contracts, bonds, and notices;



(5)  Provisions relating to assessments;



(6)  Provisions relating to financing, such as bonds,
the Hawaii agricultural development revolving fund, advances from available
funds, special funds for the payment of bonds, the payment of principal and
interest, and the sale and use of bonds;



(7)  Provisions relating to funds and the refunding of
outstanding debts; and



(8)  Provisions relating to limitations on time to
sue, and other related provisions.



(f)  Any other provisions to the contrary
notwithstanding, the corporation, at its discretion, may enter into any
agreement with the county in which project facilities are located, to implement
the purposes of this section.



(g)  All sums collected under this section
shall be deposited in the fund established by section 163D-17, except that all
moneys collected on account of assessments and interests thereon for any
specific project facilities financed by the issuance of bonds, shall be set
apart in a separate special fund and applied solely to the payment of:



(1)  The principal and interest on these bonds;



(2)  The cost of administering, operating, and
maintaining the program;



(3)  The establishment of reserves; and



(4)  Other purposes as may be authorized in the
proceedings providing for the issuance of the bonds.



If any surplus remains in any special fund
after the payment of the bonds chargeable against that special fund, the
surplus shall be credited to and become a part of the fund.  Notwithstanding
any other law to the contrary, moneys in the fund may be used to make up any
deficiencies in the special fund.



(h)  If the project facilities to be financed
through bonds by the corporation may be dedicated to the county in which the
project facilities are to be located, the corporation shall ensure that the
project facilities are designed and constructed to meet county requirements. [L
1994, c 264, pt of §1; am L 1998, c 111, §7]