HAR §17-2017-3. Relocation payments

(a) Except as provided below, any individual, family, business, or farm operation displaced by a state agency is entitled to receive a payment for actual reasonable moving expenses supported by a receipted bill or other evidences of expenses incurred. The distance of the move shall not exceed fifty miles measured in a straight line. There is no occupancy time limit for eligibility for moving expense payments. Where it is shown to be in the public interest, the executive director may give prior approval to more than one move of a displaced person. In order to obtain a moving expense payment, a displaced person must file written claim with the displacing state agency an a form approved by the corporation. Except for hardship cases, the moving expense payment shall be made only after the move is accomplished. By written prearrangement among the displacing state agency, the displaced person, and the mover, a displaced person may present an unpaid moving bill to the displacing state agency and the agency may pay the mover directly. A state agency may enter into a contract 2017-4 with independent movers on a schedule basis and furnish a displaced person with a list of movers to choose from to move the person's property. In such i~stances, the state agency shall pay the mover. (b) Optional payments: (1) In the case of a self-move, the business or farm operation may be paid an amount to be negotiated between the displacing state agency and the displaced business or farm operation not to exceed the lower of two firm bids or estimates obtained by the state agency or prepared by qualified state estimators other than the employee handling the claim. The cost of obtaining firm bids or estimates is considered eligible for reimbursement. (2) A displaced business or farm operation may elect to accept the optional payments authorized in section 111-3, HRS. {A) The term "average annual net earnings" means one-half of any net earnings of the business before federal, state, and local income taxes, during the two taxable years immediately preceding the taxable year in which the business is displaced. "Average annual net earnings" includes any compensation paid by the business to the owner, the owner's spouse, or the owner's dependents during the two-year period. Such earnings and compensation may be established by federal or state income tax returns filed by the business and its owner and the owner's spouse and dependents during the two-year period. In the case of a corporate owner of a business, 2017-5 2 6 L01 ̴̵ ̶ ̷ ̸ ̹ ̺̻̼ with independent movers on a schedule basis and furnish a displaced person with a list of movers to choose from to move the person's property . In such instances, the state agency shall pay the mover. (b) Optional payments: (1) In the case of a self-move, the business or farm operation may be paid an amount to be negotiated between the displacing state agency and the displaced business or farm operation not to exceed the lower of two firm bids or estimates obtained by the state agency or prepared by qualified state estimators other than the employee handling the claim. The cost of obtaining firm bids or estimates is considered eligible for reimbursement. (2) A displaced business or farm operation may elect to accept the optional payments authorized in section 111-3, HRS. (A) The term "average annual net earnings" means one-half of any net earnings of the business before federal, state, and local income taxes, during the two taxable years immediately preceding the taxable year in which the business is displaced. "Average annual net earnings" includes any compensation paid by the business to the owner, the owner's spouse, or the owner's dependents during the two-year period. Such earnings and compensation may be established by federal or state income tax returns filed by the business and its owner and the owner's spouse and dependents during the two-year period. In the case of a corporate owner of a business, 2017-5 2 6 01 §17-2017-3 earnings shall include any compensation paid to the spouse or dependents of the owner of a majority interest in the corporation. For the purpose of determining majority ownership, stock held by a husband, spouse wife and their dependent children shall be treated as one unit. {B) For the owner of a displaced farm operation, the displacing state agency must determine that: (i) The farm operator has discontinued farm operations at the present location; or {ii) The entire farm operation has been relocated to a new location as a result of the acquisition of real property. (C) If the displaced business or farm operation affected can show that it was in business for twelve consecutive months during the two taxable years prior to the taxable year in which it was displaced, had income during such period and is otherwise eligible, such displaced business or farm operation is eligible to receive the payment in accordance with subparagraph (A) and seqtion 111-3, HRS, and paragraph 2(A) of this section. Where the business or farm operation was in operation for twelve consecutive months or more but was not in operation during the entire two preceding years, the payment shall be computed by dividing the net earnings by the number of months the business or farm operation was 2017-6 §17-2017-3
    earnings shall include any compensation paid to the spouse or dependents of the owner of a majority interest in the corporation. For the purpose of determining majority ownership, stock held by a husband, spouse wife and their dependent children shall be treated as one unit. (B) For the owner of a displaced farm operation, the displacing state agency must determine that: (i) The farm operator has discontinued farm operations at the present location; or (ii) The entire farm operation has been relocated to a new location as a result of the acquisition of real property. (C) If the displaced business or farm operation affected can show that it was in business for twelve consecutive months during the two taxable years prior to the taxable year in which it was displaced, had income during such period and is otherwise eligible, such displaced business or farm operation is eligible to receive the payment in accordance with subparagraph (A) and section 111-3, HRS, and paragraph 2(A) of this section. Where the business or farm operation was in operation for twelve consecutive months or more but was not in operation during the entire two preceding years, the payment shall be computed by dividing the net earnings by the number of months the business or farm operation was 2017-6 operated and multiplying by twelve. (c) For the owner of a business or farm operation to be entitled to payment, the business or farm operation must provide information to support its net earnings. (d) A displaced individual or family may elect to accept the optional payments authorized in section 111-3(c), HRS. State agencies shall use the guidelines outlined in exhibit "A", Optional Fixed Payments Moving Cost Schedule Applicable to State Funded Displacements, dated NOV 'l 5 2004 , l9cated at the end of this chapter, when effecting opti6rial fixed payments to individuals and families displaced as a result of state agency action. Additionally, if federal funds should be involved in a state agency project resulting in displacement of individuals and families, the state agencies shall apply the current federal guidelines for effecting optional fixed payments to those individuals and families. (e} When necessary, a displaced person falling within subsection (a} may store personal property for a reasonable time, not to exceed one year,. pe~~g location of replacement housing. The cost of such storage shall be considered as part of the moving costs. Such costs shall be paid only after a showing of necessity for such storage and approval by the displacing state agency4 This subsection shall not apply to _2,ersons electing other optional payments. [ E ff N UV l 5 2 004 ] ( Au th : HRS § § 111-3 , 111-9 ) {Imp: HRS §§111-3, 111-9)