Bill Text: HI HB2308 | 2012 | Regular Session | Introduced

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Bill Title: Airlines; Hawaii Tourism Authority; Reimbursement Program; Appropriation

Spectrum: Partisan Bill (Democrat 19-0)

Status: (Introduced - Dead) 2012-02-01 - (H) The committee(s) on TRN recommend(s) that the measure be deferred. [HB2308 Detail]

Download: Hawaii-2012-HB2308-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2308
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to airlines.

 

 

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

 

     SECTION 1.  The legislature finds that tourism remains the State's primary industry.  Although the State is diversifying into other industries, it is important to maintain stability for tourism as an economic driver.  The legislature also finds that it is in the State's interest to share the cost of establishing new commercial flight routes in order to gain access to new visitor markets.

     The purpose of this Act is to appropriate funds to reimburse costs for airlines that add a new direct flight route to Hawaii from an airport that:

     (1)  Does not have a direct flight route to Hawaii; and

     (2)  Is located in an untapped visitor market.

     SECTION 2.  (a)  The Hawaii tourism authority shall establish a program to reimburse principal operators of commercial airlines for costs associated with certain flight routes; provided that the operator adds a direct flight route to Hawaii from an airport that:

     (1)  As of the effective date of this Act, does not have a direct flight route to Hawaii; and

     (2)  Is located in an untapped visitor market, as certified by either the Hawaii tourism authority or department of business, economic development, and tourism.

     (b)  The amount of reimbursement shall be equal to the following percentage of costs directly associated with the operations of the flight specified in subsection (a):

     (1)  One per cent; provided that the principal operator is based in the United States or Canada; provided further that the reimbursable amount claimed per one-way flight shall not exceed $300,000; or

     (2)  One and one-half per cent; provided that the principal operator is based in any country other than the United States or Canada; provided further that the reimbursable amount claimed per one-way flight shall not exceed $450,000.

     (c)  For the purposes of this Act, "costs directly associated with the operations of the flight" shall include:

     (1)  Direct labor costs for the crew of the flight, including fringe costs;

     (2)  Fuel costs;

     (3)  Aircraft lease costs calculated on a pro rata basis for the time the leased aircraft is in operation between Hawaii and its point of origin that qualifies under subsection (a) for the reimbursement;

     (4)  Food, beverages, and snacks used on the flight that are not sold; and

     (5)  Costs associated with cleaning and servicing the aircraft between flights while the aircraft is in the State.

     (d)  The following costs shall not be eligible for reimbursement:

     (1)  Any taxes, landing fees, or other government imposed fees;

     (2)  Long-term maintenance costs; or

     (3)  Administrative overhead.

     (e)  The Hawaii tourism authority shall provide reimbursement for costs incurred only during the first calendar year that the principal operator commences operation of the flight route specified in subsection (a).  Costs for flights into Hawaii and return flights shall be claimable under this Act and shall be calculated on a per flight basis.

     (f)  Prior to commencing operation of the flight route specified in subsection (a), the principal operator shall file the following with the Hawaii tourism authority:

     (1)  Certification of the flight route under subsection (a)(2); and

     (2)  Projected costs and estimated reimbursements to be claimed per year.

     (g)  The Hawaii tourism authority shall not provide reimbursement for costs incurred on flight routes that:

     (1)  Continue to a destination other than the airport designated in subsection (a); or

     (2)  Have been announced or commenced operation prior to the effective date of this Act.

     (h)  The Hawaii tourism authority shall prepare any forms that may be necessary to submit a claim for reimbursement under this Act.  The Hawaii tourism authority may also require the principal operator to furnish information to ascertain the validity of the claim for reimbursement made under this Act and may adopt rules necessary to effectuate the purposes of this Act pursuant to chapter 91, Hawaii Revised Statutes.

     (i)  Claims for reimbursement under this Act, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the calendar year for which the reimbursement may be claimed.  Failure to properly and timely claim the reimbursement shall constitute a waiver of the right to claim the reimbursement.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2012-2013 for the establishment and operation of a program to reimburse airlines for costs directly associated with certain flight routes.

     The sum appropriated shall be expended by the Hawaii tourism authority for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2012, and shall be repealed on December 31, 2013.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Airlines; Hawaii Tourism Authority; Reimbursement Program; Appropriation

 

Description:

Establishes and appropriates funds for a reimbursement program for airlines that add a new direct flight route to Hawaii.  Sunsets 12/31/13.

 

 

 

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