Hawaii-2012-HB822-Introduced

SECTION 1. The purpose of this Act is to address state revenues. More specifically, this Act:

(1) Imposes the environmental response, energy, and food security tax on aviation fuel;

(2) Requires the revenues from the tax on aviation fuel to be deposited into the airport revenue fund; and

(3) Appropriates the revenues for airport programs and projects intended for immediate employment creation in the private sector.

SECTION 2. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product [~~that is not aviation fuel~~]; provided that of the tax collected pursuant to this subsection:

(1) All revenues collected from the tax on each barrel of aviation fuel shall be deposited into the airport revenue fund established under section 248-8; and

(2) With respect to revenues collected from the tax on non-aviation fuel:

[~~(1)~~] (A) 5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

[~~(2)~~] (B) 15 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

[~~(3)~~] (C) 10 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169; and

[~~(4)~~] (D) 15 cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141-10.

The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

SECTION 3. Section 261-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except for:

(1) That portion of the payments received by the department under a contract entered into as authorized by section 261-7 and deposited in the transportation use special fund pursuant to section 261D-1;

(2) All proceeds from the passenger facility charge and deposited in the passenger facility charge special fund; and

(3) All proceeds from the rental motor vehicle customer facility charge and deposited in the rental motor vehicle customer facility charge special fund,

all moneys received by the department from rents, fees, and other charges collected pursuant to this chapter, [~~as well as~~] all aviation fuel taxes paid pursuant to section 243-4(a)(2), and all environmental response, energy, and security taxes collected from aviation fuel pursuant to section 243-3.5(a)(1), shall be paid into the airport revenue fund created by section 248-8.

All moneys paid into the airport revenue fund shall be appropriated, applied, or expended by the department for any purpose within the jurisdiction, powers, duties, and functions of the department related to the statewide system of airports, including, without limitation, the costs of operation, maintenance, and repair of the statewide system of airports and reserves therefor, and acquisitions (including real property and interests therein), constructions, additions, expansions, improvements, renewals, replacements, reconstruction, engineering, investigation, and planning for the statewide system of airports, all or any of which in the judgment of the department are necessary to the performance of its duties or functions. The department shall generate sufficient revenues from its airport properties to meet all of the expenditures of the statewide system of airports and to comply with section 39-61; provided that as long as sufficient revenues are generated to meet such expenditures, the director of transportation may, in the director's discretion, grant a rebate of the aviation fuel taxes paid into the airport revenue fund during a fiscal year pursuant to sections 243-4(a)(2) and 248-8 to any person who has paid airport use charges or landing fees during such fiscal year. Such rebate may be granted during the next succeeding fiscal year but shall not exceed one-half cent per gallon per person, and shall be computed on the total number of gallons for which the tax was paid by such person, for such fiscal year."

SECTION 4. There is appropriated out of the airport revenue fund of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for repair, maintenance, and other programs and projects at state airports that promote employment opportunities in the private sector during the fiscal year in which the moneys are appropriated.

The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

The legislature intends that the amount appropriated in each fiscal year approximate the total revenue from the environmental response, energy, and food security tax collected from aviation fuel during that fiscal year.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2011, and shall be repealed on June 30, 2015; provided that:

(1) Section 243-3.5(a), Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 30, 2010; and

(2) Section 261-5(a), Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 30, 2011.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	822
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII