Bill Text: HI SB2328 | 2012 | Regular Session | Introduced
Bill Title: Hawaii Tourism Authority; County Tourism Surcharge Tax
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-23 - (S) Referred to TSM/EDT/PGM, WAM. [SB2328 Detail]
Download: Hawaii-2012-SB2328-Introduced.html
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THE SENATE |
S.B. NO. |
2328 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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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. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . Tourism
§201-A Definitions. As used in this part:
"Department" means the department of business, economic development, and tourism.
"Director" means the director of business, economic development, and tourism.
§201-B Powers and duties. (a) With regard to tourism functions, the department may:
(1) Sue and be sued;
(2) Have a seal and alter the same at pleasure;
(3) Through its director make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the department may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; provided further that the department may enter into agreements for the use of the convention center facility for a period of up to ten years;
(4) Make and alter bylaws for its organization and internal management;
(5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;
(6) Through its director, represent the department in communications with the governor and the legislature;
(7) Through its director, provide for the appointment of officers, agents, a sports coordinator, and employees, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if there is no anticipated revenue shortfall in the tourism special fund and funds have been appropriated by the legislature and allotted as provided by law;
(8) Through its director, purchase supplies, equipment, or furniture;
(9) Through its director, allocate the space or spaces that are to be occupied by the department and appropriate staff;
(10) Through its director, engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the department;
(11) Through its director, engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
(12) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;
(13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source, including any revenues or proceeds arising from the operation or use of the convention center;
(14) Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State and its natural resources infrastructure; provided that the department shall support the efforts of other state and county departments or agencies to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors;
(15) Have a permanent, strong focus on marketing and promotion;
(16) Conduct market development-related research as necessary;
(17) Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources;
(18) Work to eliminate or reduce barriers to travel to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development;
(19) Market and promote sports-related activities and events;
(20) Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, culture, health and wellness, education, technology, agriculture, and nature tourism;
(21) Establish a public information and educational program to inform the public of tourism and tourism-related problems;
(22) Encourage the development of tourism educational, training, and career counseling programs;
(23) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary;
(24) Develop and implement emergency measures to respond to any adverse effects on the tourism industry;
(25) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;
(26) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and
(27) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility.
(b) The department shall be responsible for:
(1) Promoting, marketing, and developing the tourism industry in the State;
(2) Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning social, economic, and environmental aspects of tourism development in the State; provided that, where public disclosure of information gathered by the department may place businesses at a competitive disadvantage and impair or frustrate the department's ability to obtain information for a legitimate government function, the department may withhold from public disclosure competitively sensitive information, including:
(A) Completed survey and questionnaire forms;
(B) Coding sheets; and
(C) Database records of the information;
(3) Providing technical or other assistance to agencies and private industry upon request;
(4) Creating a vision and developing a long-range strategic plan for tourism in Hawaii; and
(5) Reviewing annually the expenditure of public funds by any visitor industry organization with which the department contracts to perform tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of tourism. The department shall also prepare annually a report of expenditures, including descriptions and evaluations of programs funded, together with any recommendations the department may make and shall submit the report to the governor and the legislature as part of the department's annual report.
(c) The department shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this chapter, and to perform other functions required or authorized by law.
§201-C Tourism special fund. (a) There is established the tourism special fund to be administered by the department into which shall be deposited:
(1) A portion of the revenues from any transient accommodations tax, as provided by section 237D-6.5;
(2) Appropriations by the legislature to the tourism special fund; and
(3) Gifts, grants, and other funds accepted by the department.
(b) Moneys in the tourism special fund may be:
(1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or
(2) Invested by the department until such time as the moneys may be needed; provided that the department shall limit its investments to those listed in section 36-21.
All interest accruing from the investment of these moneys shall be credited to the tourism special fund.
(c) Until June 30, 2015, pursuant to Act 102, Session Laws of Hawaii 2010, moneys in the tourism special fund shall be used by the department for the purposes of this chapter; provided that:
(1) Not more than five per cent of this amount shall be used for administrative expenses, including $15,000 for a protocol fund to be expended at the discretion of the director; 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.
§201-D Convention center enterprise special fund. (a) There is established the convention center enterprise 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) 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) 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) Appropriations by the legislature, including any transfers from the tourism special fund established under section 201-C or marketing the facility.
(b) Moneys in the convention center enterprise special fund shall be used by the department for the payment of any and all debt service relating to the convention center, any expense 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.
(c) Moneys in the convention center enterprise special fund may be:
(1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or
(2) Invested by the department until such time as the moneys may be needed; provided that the department shall limit its investments to those listed in section 36-21.
All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund.
§201-E Tourism marketing plan; measures of effectiveness. (a) The department shall be responsible for developing a tourism marketing plan that shall be updated every year and includes the following:
(1) Statewide promotional efforts and programs;
(2) Targeted markets;
(3) Efforts to enter into brand marketing projects that make effective use of cooperative advertising programs;
(4) Program performance goals and targets that can be monitored as market gauges and used as attributes to evaluate the department's promotional programs; and
(5) Coordination of marketing plans of all destination marketing organizations receiving state funding prior to finalization of the department's marketing plan.
(b) In accordance with subsection (a), the department shall develop measures of effectiveness to assess the overall benefits and effectiveness of the marketing plan and include documentation of the progress of the marketing plan toward achieving the department's strategic plan goals.
§201-F Tourism-related activities. (a) The department may enter into contracts and agreements that include the following:
(1) Tourism promotion, marketing, and development;
(2) Market development-related research;
(3) Product development and diversification issues focused on visitors;
(4) Promotion, development, and coordination of sports-related activities and events;
(5) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;
(6) Reduction of barriers to travel;
(7) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2003, and thereafter, the contract for management of the convention center facility shall include marketing for all uses of the facility;
(8) Tourism research and statistics to:
(A) Measure and analyze tourism trends;
(B) Provide information and research to assist in the development and implementation of state tourism policy;
(C) Provide tourism information on:
(i) Visitor arrivals, visitor characteristics, and expenditures;
(ii) The number of transient accommodation units available, occupancy rates, and room rates;
(iii) Airline-related data including seat capacity and number of flights;
(iv) The economic, social, and physical impacts of tourism on the State; and
(v) The effects of the marketing programs of the department on the measures of effectiveness developed; and
(9) Any and all other activities necessary to carry out the intent of this chapter;
provided that the department shall periodically submit a report of the contracts and agreements entered into by the department to the governor, the speaker of the house of representatives, and the president of the senate.
(b) The department may delegate to staff the responsibility for soliciting, awarding, and executing contracts, and monitoring and facilitating any and all functions developed in accordance with subsection (a).
§201-G Applicability of Hawaii public procurement code; convention center contractor; construction contracts. The construction contracts for the maintenance of the convention center facility by the private contractor that operates the convention center, by its direct or indirect receipt of, and its expenditure of, public funds from the department shall be subject to part III of chapter 103D.
§201-H Tourism emergency. (a) If the department determines that the occurrence of a world conflict, terrorist threat, national or global economic crisis, natural disaster, outbreak of disease, or other catastrophic event adversely affects Hawaii's tourism industry by resulting in a substantial interruption in the commerce of the State and adversely affecting the welfare of its people, the department shall submit a request to the governor to declare that a tourism emergency exists.
(b) Upon declaration by the governor that a tourism emergency exists pursuant to subsection (a), the department shall develop and implement measures to respond to the tourism emergency, including providing assistance to tourists during the emergency; provided that any tourism emergency response measure implemented pursuant to this subsection shall not include any provision that would adversely affect the organized labor force in tourism-related industries. With respect to a national or global economic crisis only, in addition to the governor's declaration of the existence of a tourism emergency, no action in response to the tourism emergency declaration may be taken by the department without the governor's express approval.
§201-I Tourism emergency trust fund. (a) There is established outside the state treasury a tourism emergency trust fund to be administered by the department into which shall be deposited the revenues prescribed by section 237D‑6.5(b). All investment earnings from moneys in the trust fund shall be credited to the tourism special fund.
(b) Moneys in the trust fund shall be used exclusively to provide for the development and implementation of emergency measures to respond to any tourism emergency, including providing emergency assistance to tourists during the tourism emergency.
(c) Use of the trust fund, consistent with subsection (b), shall be provided for in articles, bylaws, resolutions, or other instruments executed by the department for the trust fund."
SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is amended to read as follows:
"§237D-6.5 Remittances[;
distribution to counties]. (a) All remittances of taxes imposed under
this chapter shall be made by cash, bank drafts, cashier's check, money order,
or certificate of deposit to the office of the taxation district to which the
return was transmitted.
(b) Revenues collected under this chapter, except for revenues collected under section 237D-2(b), shall be distributed as follows, with the excess revenues to be deposited into the general fund:
(1) 17.3 per cent of the revenues collected under
this chapter shall be deposited into the convention center enterprise special
fund established under section [201B-8;] 201-D; provided that
beginning January 1, 2002, if the amount of the revenue collected under this
paragraph exceeds $33,000,000 in any calendar year, revenues collected in
excess of $33,000,000 shall be deposited into the general fund; and
(2) 34.2 per cent of the revenues collected under
this chapter shall be deposited into the tourism special fund established under
section [201B-11] 201-C for tourism promotion and visitor
industry research; provided that for any period beginning on July 1, 2011, and
ending on June 30, 2015, no more than $69,000,000 per fiscal year shall be
deposited into the tourism special fund established under section [201B-11;]
201-C; and provided further that beginning on July 1, 2002, of the first
$1,000,000 in revenues deposited:
(A) Ninety per cent shall be deposited into the state parks special fund established in section 184‑3.4; and
(B) Ten per cent shall be deposited into the special land and development fund established in section 171-19 for the Hawaii statewide trail and access program;
provided that of the 34.2 per cent, 0.5 per cent
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; provided further that 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 trust fund, established in section [201B-10,]
201-I, in a manner sufficient to maintain a fund balance of $5,000,000
in the tourism emergency trust [fund; and] fund.
[(3) 44.8 per cent of the revenues
collected under this chapter shall be transferred 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 for any period beginning on July 1, 2011,
and ending on June 30, 2015, the total amount transferred to the counties shall
not exceed $93,000,000 per fiscal year.]
Revenues collected under section 237D-2(b) shall be deposited into the general fund. 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.
[(c) On or before January or July 1 of each
year or after the disposition of any tax appeal with respect to an assessment
for periods after June 30, 1990, the state director of finance shall compute
and pay the amount due as provided in subsection (b) to the director of finance
of each county to become a general realization of the county expendable as
such, except as otherwise provided by law."]
SECTION 3. Chapter 201B, Hawaii Revised Statutes, is repealed.
SECTION 4. Upon the effective date of this Part, any balance of moneys in the tourism special fund, the convention center enterprise special fund, and tourism emergency trust fund under chapter 201B, Hawaii Revised Statutes, shall be transferred respectively to the corresponding tourism special fund, convention center enterprise special fund, and tourism emergency trust fund under the respective new sections of chapter 201, Hawaii Revised Statutes, created by section 1 of this Act.
SECTION 5. Upon the effective date of this Part, any balance of moneys in the budget of the Hawaii tourism authority shall be transferred to the budget of the department of business, economic development, and tourism.
SECTION 6. All rights, powers, functions, and duties of the Hawaii tourism authority are transferred to the department of business, economic development, and tourism.
All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.
No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.
If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.
SECTION 7. The amendments made to section 237D-6.5, Hawaii Revised Statutes, by section 2 of this Act shall not be repealed when that section is reenacted on June 30, 2015, pursuant to Act 61, Session Laws of Hawaii 2009.
PART II
SECTION 8. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:
(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;
(2) By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide such representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;
(3) By the legislative reference bureau;
(4) By any compilation commission that may be constituted from time to time;
(5) By the real estate commission for any action involving the real estate recovery fund;
(6) By the contractors license board for any action involving the contractors recovery fund;
(7) By the office of Hawaiian affairs;
(8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;
(9) As grand jury counsel;
(10) By the Hawaiian home lands trust individual claims review panel;
(11) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;
(12) By the auditor;
(13) By the office of ombudsman;
(14) By the insurance division;
(15) By the University of Hawaii;
(16) By the Kahoolawe island reserve commission;
(17) By the division of consumer advocacy;
(18) By the office of elections;
(19) By the campaign spending commission;
[(20) By the Hawaii tourism authority, as
provided in section 201B-2.5;
(21)] (20) By the division of financial
institutions for any action involving the mortgage loan recovery fund; or
[(22)] (21) By a department, in the event
the attorney general, for reasons deemed by the attorney general to be good and
sufficient, declines to employ or retain an attorney for a department; provided
that the governor waives the provision of this section."
2. By amending subsection (c) to read:
"(c) Every
attorney employed by any department on a full-time basis, except an attorney
employed by the public utilities commission, the labor and industrial relations
appeals board, the Hawaii labor relations board, the office of Hawaiian
affairs, the Hawaii health systems corporation or its regional system boards,
the department of commerce and consumer affairs in prosecution of consumer
complaints, insurance division, the division of consumer advocacy, the
University of Hawaii, [the Hawaii tourism authority as provided in section
201B-2.5,] the Hawaiian home lands trust individual claims review panel, or
as grand jury counsel, shall be a deputy attorney general."
SECTION 9. Section 40-1, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) With respect to the executive
branch, except the University of Hawaii until June 30, 2016, [the Hawaii
tourism authority,] and the department of education until June 30, 2015,
the comptroller shall have complete supervision of all accounts. The
comptroller shall preaudit all proposed payments of $10,000 or more to determine
the propriety of expenditures and compliance with executive orders and rules
that may be in effect. When necessary, the comptroller shall withhold approval
of any payment. Whenever approval is withheld, the department or agency
concerned shall be promptly notified. With respect to the University of Hawaii[,
the Hawaii tourism authority,] and the department of education, the
comptroller shall issue warrants for the release of funds for the operating
costs of the university[, the Hawaii tourism authority,] or the
department of education, as applicable, in amounts and at times mutually agreed
upon by the governor or director of finance and the university[, the Hawaii
tourism authority,] or department of education, as applicable; provided
that:
(1) The amounts released shall not exceed the
allotment ceilings for the respective funding sources of the university's or
the department of education's appropriations established by the governor for an
allotment period pursuant to section 37-34, or in the case of [the Hawaii
tourism authority,] revenues received by the convention center enterprise
special fund and the tourism special fund pursuant to section 237D-6.5; and
(2) The comptroller may issue warrants as an advance
from the state treasury to the University of Hawaii[, the Hawaii tourism
authority,] and the department of education to establish a checking account
and provide working capital in amounts and at times mutually agreed upon by the
governor or director of finance and the University of Hawaii[, the Hawaii
tourism authority,] and the department of education.
The University of Hawaii and the department of
education shall preaudit all proposed payments of $10,000 or more and shall
preaudit samples of the population of proposed payments of less than $10,000;
provided that the sample size comprises at least five per cent of the
population, and is of a size that the chief financial officers of the
University of Hawaii and the department of education, as applicable, determine
appropriate, to determine the propriety of expenditures and compliance with
applicable laws, executive orders, and rules. [The Hawaii tourism authority
shall preaudit all proposed payments to determine the propriety of expenditures
and compliance with applicable laws, executive orders, and rules as may be in
effect.] The University of Hawaii[, the Hawaii tourism authority,] and
the department of education shall make disbursements for operating expenses
from the amounts released by the comptroller and maintain records and documents
necessary to support those disbursements at times mutually agreed upon by the
university president[, the executive director of the Hawaii tourism
authority,] or the superintendent of education, as applicable, and the
comptroller; provided that when requested by the university[,] or
the [Hawaii tourism authority, or] department of education, the
comptroller shall make all disbursements for the university[, the Hawaii
tourism authority,] or department of education, as applicable, subject to
available allotment. Funds released pursuant to this section shall be
deposited by the university[, the Hawaii tourism authority,] or
department of education, as applicable, in accordance with the provisions
applicable to the director of finance by chapter 38. Except for moneys
deposited by the [Hawaii tourism authority] department of
business, economic development, and tourism in the convention center
enterprise special fund pursuant to section [201B-8,] 201-D, and
in the tourism special fund pursuant to section [201B-11,] 201-C,
any interest earned on the deposit of funds released pursuant to this section
shall be deposited in the state treasury at the end of each fiscal year."
SECTION 10. Section 40-4, Hawaii Revised Statutes, is amended to read as follows:
"§40-4 Publication of
statements. The comptroller shall prepare and submit to the governor,
immediately following the close of each fiscal year, a statement of income and
expenditure by funds, showing the principal sources of revenue, the function or
purpose for which expenditures were made, together with a consolidated
statement showing similar information for all funds; also a statement showing
the balance in each fund at the beginning of the fiscal year, plus the
receipts, minus the disbursements, and the balance on hand at the close of the
fiscal year after deducting outstanding warrants and vouchers. The comptroller
may request all agencies, the judiciary, the University of Hawaii until June
30, 2016, [the Hawaii tourism authority,] the department of education until
June 30, 2011, and the legislature to provide such information as may be
required for the preparation of statements."
SECTION 11. Section 40-6, Hawaii Revised Statutes, is amended to read as follows:
"§40-6 Approval of business and
accounting forms. The comptroller shall determine the forms required to
adequately supply accounting and statistical data for the state government.
The comptroller shall require heads of departments and establishments of the
state government to submit proposed new forms or proposed changes in current
business and accounting forms for review and approval before ordering the same
printed; except that the University of Hawaii until June 30, 2016, [the
Hawaii tourism authority,] and the department of education until June 30,
2011, shall be subject to this requirement only with respect to uniform
business and accounting forms of statewide use in the State's accounting
system. All standard state forms shall be classified, numbered, and
standardized in design, dimensions, color, and grade of paper and recorded in a
catalogue of accounting and statistical forms by the comptroller."
SECTION 12. Section 5 of Act 102, Session Laws of Hawaii 2010, is amended to read as follows:
"SECTION 5. Act 58, Session Laws of Hawaii 2004, as amended by section 50 of Act 22, Session Laws of Hawaii 2005, as amended by section 1 of Act 306, Session Laws of Hawaii 2006, as amended by section 12 of Act 5, Special Session Laws of Hawaii 2009, is amended by amending section 14 to read as follows:
"SECTION
14. This Act shall take effect upon its approval; provided that:
(1) The amendments made to sections 40-1, 40-4, and 40-6, Hawaii Revised Statutes, by part I of this Act shall not be repealed when those sections are reenacted on June 30, 2006, by section 1 of Act 137, Session Laws of Hawaii 2005;
(2) Sections 3, 4, 5,
6, and 7 of part I shall be repealed on June 30, 2015, [and:
(A) Sections 201B-2 and 201B-11,
Hawaii Revised Statutes, shall be reenacted in the form in which they read on
May 5, 2004; except that the amendments made by Act 5, Special Session Laws of
Hawaii 2009, to section 201B-2, Hawaii Revised Statutes, and subsection (c) of
section 201B-11, Hawaii Revised Statutes, shall not be repealed; and
(B) Sections]
and sections 40-1, 40-4, and 40-6, Hawaii Revised Statutes, shall be
reenacted in the form in which they read on June 30, 1986; and
(3) Section 9 shall take effect on July 1, 2004."
SECTION 13. The amendments made to sections 40-1, 40-4, and 40-6, Hawaii Revised Statutes, by sections 9, 10, and 11, respectively, of this Act shall not be repealed when those sections are reenacted on June 30, 2015, pursuant to Act 102, Session Laws of Hawaii 2010.
PART III
SECTION 14. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46‑ County tourism surcharge tax. (a) Each county may establish by ordinance a county tourism surcharge tax at the rates provided in sections 237‑ and 238‑ ; provided that the director of taxation, in cooperation with each county, shall levy, assess, collect, and otherwise administer the county tourism surcharge tax; provided further that no county tourism surcharge tax shall be levied prior to January 1, 2013."
SECTION 15. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237‑ County tourism surcharge tax. (a) Beginning January 1, 2013, pursuant to section 46‑ , in addition to all other taxes imposed under this chapter, each county may levy, assess, and collect a county tourism surcharge tax at the rate of not more than two per cent on:
(1) Gross proceeds and gross income taxable under this chapter that occur within that county; and
(2) Gross proceeds or gross income of all written contracts that require the passing on of the taxes imposed under this chapter; provided that if the gross proceeds or gross income are received as payments beginning in the taxable year in which the taxes become effective, on contracts entered into before June 30 of the year prior to the taxable year in which the taxes become effective, and the written contracts do not provide for the passing on of increased rates of taxes, the county tourism surcharge tax shall not be imposed on the gross proceeds or gross income covered under the written contracts. The county tourism surcharge tax shall be imposed on the gross proceeds or gross income from all contracts entered into on or after June 30 of the year prior to the taxable year in which the taxes become effective, regardless of whether the contract allows for the passing on of any tax or any tax increases.
(b) No county tourism surcharge tax shall be established under this chapter upon any transaction that is not subject to taxation or that is exempt from taxation under this chapter.
(c) A county electing to establish a county tourism surcharge tax shall do so by adoption of county ordinance.
(d) Revenue received by a county from a county tourism surcharge tax shall be deposited into each respective county's general fund for use by that county.
(e) The director of finance of each county electing to establish a county tourism surcharge tax shall provide the necessary filing forms.
(f) The penalties provided by section 231-39 for failure to file a tax return shall be imposed on the amount of county tourism surcharge tax due on the return being filed for the failure to file the schedule required to accompany the return; provided that the county, in conjunction with the department of taxation, shall be responsible for the enforcement of the county tourism surcharge tax. In addition, there shall be added to the tax an amount equal to ten per cent of the amount of the surcharge and tax due on the return being filed for the failure to file the schedule or the failure to correctly report the assignment of the county tourism surcharge tax.
(g) All taxpayers who file on a fiscal year basis whose fiscal year ends after December 31 of the year prior to the taxable year in which the taxes become effective, shall file a short period annual return for the period preceding January 1 of the taxable year in which the taxes become effective. Each fiscal year taxpayer shall also file a short period annual return for the period starting on January 1 of the taxable year in which the taxes become effective, and ending before January 1 of the following year."
SECTION 16. Chapter 238, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§238‑ County tourism surcharge tax. (a) Beginning January 1, 2013, pursuant to section 46‑ , in addition to all other taxes imposed under this chapter, each county may levy, assess, and collect a county tourism surcharge tax at the rate of not more than two per cent on the value of property and services taxable under this chapter. Except as provided in this section, all provisions of this chapter shall apply to the county tourism surcharge tax.
(b) A county electing to establish a county tourism surcharge tax shall do so by adoption of county ordinance.
(c) Revenue received by a county from a county tourism surcharge tax shall be deposited into each respective county's general fund for use by that county.
(d) The county director of finance shall also have the exclusive rights and power to determine the imports or purchases of tangible personal property that are subject to the county tourism surcharge tax.
(e) No county tourism surcharge tax shall be established upon any use taxable under this chapter that is exempt from taxation under this chapter.
(f) The director of finance of each county electing to establish a county tourism surcharge tax shall provide the necessary filing forms.
(g) The penalties provided by section 231-39 for failure to file a tax return shall be imposed on the amount of surcharge due on the return being filed for the failure to file the schedule required to accompany the return. In addition, there shall be added to the tax an amount equal to ten per cent of the amount of the surcharge and tax due on the return being filed for the failure to file the schedule or the failure to correctly report the assignment of the use tax by taxation district on the schedule required under this subsection.
(h) All taxpayers who file on a fiscal year basis whose fiscal year ends after December 31 of the year prior to the taxable year in which the taxes become effective, shall file a short period annual return for the period preceding January 1 of the taxable year in which the taxes become effective. Each fiscal year taxpayer shall also file a short period annual return for the period starting on January 1 of the taxable year in which the taxes become effective, and ending before January 1 of the following year."
PART IV
SECTION 17. In codifying this Act, the revisor shall substitute the appropriate numbered section designations for the letter designations used in this Act.
SECTION 18. In codifying this Act, the revisor shall substitute the term "department of business, economic development, and tourism" or "department", as appropriate, for the term "Hawaii tourism authority" wherever that term appears in statute in other statutory sections than those amended in this Act.
SECTION 19. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 20. This Act shall take effect on January 1, 2013.
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Report Title:
Hawaii Tourism Authority; County Tourism Surcharge Tax
Description:
Repeals Hawaii tourism authority. Transfers the functions of the Hawaii tourism authority to DBEDT. Eliminates distribution of funds to counties from transient accommodations tax. Allows counties to assess county tourism surcharge tax.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
