THE SENATE |
S.B. NO. |
2224 |
TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 1 |
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STATE OF HAWAII |
Proposed |
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A BILL FOR AN ACT
RELATING TO TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 201B-8, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:
"§201B-8 Convention center [enterprise
special fund.] operations and maintenance special fund. (a)
There is established the convention center [enterprise special fund,] operations
and maintenance special fund, into which shall be deposited:
[(1) A portion of the revenues from the
transient accommodations tax, as provided by section 237D-6.5;
(2)] (1) All revenues or moneys derived
from the operations of the convention center to include all revenues from the
food and beverage service, all revenues from the parking facilities or from any
concession, and all revenues from the sale of souvenirs, logo items, or any
other items offered for purchase at the convention center;
[(3)] (2) Private contributions,
interest, compensation, gross or net revenues, proceeds, or other moneys
derived from any source or for any purpose arising from the use of the
convention center facility; and
[(4)] (3) Appropriations by the legislature,
including any transfers from the tourism special fund established under section
201B-11 for marketing the facility pursuant to section 201B-7(a)(7).
(b) Moneys in the convention center [enterprise]
operations and maintenance special fund shall be used by the authority
for the payment of any and all of the following:
[(1) Debt owed to the department of budget
and finance relating to the convention center; and
(2)] (1) Expenses arising from any and
all use, operation, maintenance, alteration, improvement, or any unforeseen or
unplanned repairs of the convention center, including without limitation the
food and beverage service and parking service provided at the convention center
facility, the sale of souvenirs, logo items, or other items, for any future
major repair, maintenance, and improvement of the convention center facility as
a commercial enterprise or as a world class facility for conventions,
entertainment, or public events, and for marketing the facility pursuant to
section 201B-7(a)(7)[.]; and
(2) Salaries for convention center personnel."
SECTION 2. Section 201B-11, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) Moneys in the tourism special fund shall be used by the authority for the purposes of this chapter, provided that:
(1) [Not] No more than [3.5 per cent
of this amount] $2,800,000 shall be used for administrative expenses[,
including $15,000 for a protocol fund to be expended at the discretion of the
president and chief executive officer]; and
(2) [At least $1,000,000 shall be made available
to support efforts to manage, improve, and protect Hawaii's natural environment
and areas frequented by visitors.] No more than $49,200,000 shall be
used for marketing expenses."
SECTION 3. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:
(1) $1,500,000 shall be allocated to the Turtle Bay conservation easement special fund beginning July 1, 2015, for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, the proceeds of which were used to acquire the conservation easement and other real property interests in Turtle Bay, Oahu, for the protection, preservation, and enhancement of natural resources important to the State, until the bonds are fully amortized;
[(2) $26,500,000 shall be allocated to the
convention center enterprise special fund established under section 201B-8;
(3)] (2) [$82,000,000] $52,000,000
shall be allocated to the tourism special fund established under section
201B-11; provided that[:
(A) Beginning] beginning
on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from
the tourism special fund for development and implementation of initiatives to
take advantage of expanded visa programs and increased travel opportunities for
international visitors to Hawaii[;].
[(B) Of the $82,000,000 allocated:
(i) $1,000,000 shall be allocated for
the operation of a Hawaiian center and the museum of Hawaiian music and dance
at the Hawaii convention center; and
(ii) 0.5 per cent of the $82,000,000
shall be transferred to a sub-account in the tourism special fund to provide
funding for a safety and security budget, in accordance with the Hawaii tourism
strategic plan 2005-2015; and
(C) Of the revenues remaining in the
tourism special fund after revenues have been deposited as provided in this
paragraph and except for any sum authorized by the legislature for expenditure
from revenues subject to this paragraph, beginning July 1, 2007, funds shall be
deposited into the tourism emergency special fund, established in section
201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the
tourism emergency special fund;
(4)] (3) $103,000,000 shall be
allocated as follows: Kauai county shall receive 14.5 per cent, Hawaii county
shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per
cent, and Maui county shall receive 22.8 per cent; provided that commencing
with fiscal year 2018-2019, a sum that represents the difference between a
county public employer's annual required contribution for the separate trust
fund established under section 87A-42 and the amount of the county public
employer's contributions into that trust fund shall be retained by the state
director of finance and deposited to the credit of the county public employer's
annual required contribution into that trust fund in each fiscal year, as
provided in section 87A-42, if the respective county fails to remit the total
amount of the county's required annual contributions, as required under section
87A-43; [and
(5)] (4) $3,000,000 shall be allocated
to the special land and development fund established under section 171-19;
provided that the allocation shall be expended [in accordance with the
Hawaii tourism authority strategic plan] for:
(A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
(B) Planning, construction, and repair of facilities; and
(C) Operation and maintenance costs of public
lands, including beaches, connected with enhancing the visitor experience[.];
(5) $ shall be allocated to the department of business, economic development, and tourism; provided that the funds allocated shall be expended for other economic development initiatives and programs;
(6) $ shall be allocated to the department of education and University of Hawaii; provided that the funds allocated shall be expended for career technical education programs for the tourism industry;
(7) $ shall be allocated to University of Hawaii athletics; provided that the funds allocated shall be expended for student athlete travel;
(8) $ shall be allocated to the department of land and natural resources; provided that the funds allocated shall be expended to address the impact of tourism on the natural resources of the State;
(9) $ shall be allocated to the department of public safety; provided that the funds allocated shall be expended for ; and
(10) $ shall be allocated to the state foundation on culture and the arts; provided that the funds allocated shall be expended for the perpetuation of the Hawaiian culture.
All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection.
As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."
PART II
SECTION 4. Section 87A-42, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) In any fiscal year subsequent to the
2017-2018 fiscal year in which a county public employer's contributions into
the fund are less than the amount of the annual required contribution, the
amount that represents the excess of the annual required contribution over the
county public employer's contributions shall be deposited into the fund from a
portion of all transient accommodations tax revenues collected by the
department of taxation under section [237D-6.5(b)(4).] 237D‑6.5(b)(3).
The director of finance shall deduct the amount necessary to meet the county
public employer's annual required contribution from the revenues derived under
section [237D‑6.5(b)(4)] 237D-6.5(b)(3) and transfer the
amount to the board for deposit into the appropriate account of the separate
trust fund."
SECTION 5. Section 171-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is created in the department a
special fund to be designated as the "special land and development
fund". Subject to the Hawaiian Homes Commission Act of 1920, as amended,
and section 5(f) of the Admission Act of 1959, all proceeds of sale of public
lands, including interest on deferred payments; all moneys collected under
section 171-58 for mineral and water rights; all rents from leases, licenses,
and permits derived from public lands; all moneys collected from lessees of
public lands within industrial parks; all fees, fines, and other administrative
charges collected under this chapter and chapter 183C; a portion of the highway
fuel tax collected under chapter 243; all moneys collected by the department
for the commercial use of public trails and trail accesses under the
jurisdiction of the department; transient accommodations tax revenues collected
pursuant to section [237D-6.5(b)(5);] 237D-6.5(b)(4); and private
contributions for the management, maintenance, and development of trails and
accesses shall be set apart in the fund and shall be used only as authorized by
the legislature for the following purposes:
(1) To reimburse the general fund of the State for advances made that are required to be reimbursed from the proceeds derived from sales, leases, licenses, or permits of public lands;
(2) For the planning, development, management, operations,
or maintenance of all lands and improvements under the control and management
of the board pursuant to title 12, including but not limited to permanent or
temporary staff positions who may be appointed without regard to chapter 76;
provided that transient accommodations tax revenues allocated to the fund shall
be expended as provided in section [237D‑6.5(b)(5);] 237D-6.5(b)(4);
(3) To repurchase any land, including improvements, in the exercise by the board of any right of repurchase specifically reserved in any patent, deed, lease, or other documents or as provided by law;
(4) For the payment of all appraisal fees; provided that all fees reimbursed to the board shall be deposited in the fund;
(5) For the payment of publication notices as required under this chapter; provided that all or a portion of the expenditures may be charged to the purchaser or lessee of public lands or any interest therein under rules adopted by the board;
(6) For the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department;
(7) For the payment to private land developers who have contracted with the board for development of public lands under section 171-60;
(8) For the payment of debt service on revenue bonds issued by the department, and the establishment of debt service and other reserves deemed necessary by the board;
(9) To reimburse the general fund for debt service on general obligation bonds issued to finance departmental projects, where the bonds are designated to be reimbursed from the special land and development fund;
(10) For the protection, planning, management, and regulation of water resources under chapter 174C; and
(11) For other purposes of this chapter."
SECTION 6. Section 201B-2, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f) The board shall appoint one person
to serve as president and chief executive officer, exempt from chapters 76 and
88 who shall oversee the authority staff; provided that the compensation
package, including salary, shall not exceed fifteen per cent of the [3.5 per
cent] $2,800,000 authorized for administrative expenses under
section 201B-11(c); and provided further that the compensation package shall
not include private sector moneys or other contributions. The board shall set
the president and chief executive officer's duties, responsibilities, holidays,
vacations, leaves, hours of work, and working conditions. It may grant other benefits
as it deems necessary."
SECTION 7. Section 201B-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established outside the state
treasury a tourism emergency special fund to be administered by the board, into
which shall be deposited the revenues prescribed by [section 237D‑6.5(b).]
. All
investment earnings from moneys in the special fund shall be credited to the
tourism special fund established pursuant to section 201B-11."
SECTION 8. Sections 36-27(a) and 36-30(a), Hawaii Revised Statutes, are amended by substituting the phrase "convention center operations and maintenance special fund", or a similar phrase, wherever the phrase "convention center enterprise special fund", or a similar phrase, appears, as the context requires.
PART III
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 2018.
Report Title:
Hawaii Tourism Authority; Convention Center Operations and Maintenance Special Fund; Transient Accommodations Tax
Description:
Renames the convention center enterprise special fund as the convention center operations and maintenance special fund and repeals the allocation of TAT revenues to that fund, and amends the allowable uses of that fund. Redistributes transient accommodations tax revenue from the Hawaii tourism authority to different state agencies for certain purposes. (Proposed SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.