Bill Text: HI SB534 | 2015 | Regular Session | Introduced

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Bill Title: Tourism Special Fund; Conservation and Resources Enforcement Special Fund; Transient Accommodations Tax; Appropriation ($)

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2015-02-18 - The committee on PSM deferred the measure. [SB534 Detail]

Download: Hawaii-2015-SB534-Introduced.html

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THE SENATE	S.B. NO.	534
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TRANSIENT ACCOMMODATIONS TAX.

 

 

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

 

     SECTION 1.  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)(2); 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, 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 deposited into the special land and development fund pursuant to section 237D-6.5(b)(6)(B) shall be expended subject to the mutual agreement of the board of land and natural resources and the board of directors of the Hawaii tourism authority an in accordance with the Hawaii tourism authority strategic plan;

     (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 2.  Section 237D-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is levied and shall be assessed and collected each month a tax of:

     (1)  Five per cent for the period beginning on January 1, 1987, to June 30, 1994;

     (2)  Six per cent for the period beginning on July 1, 1994, to December 31, 1998;

     (3)  7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009;

     (4)  8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010; [and]

     (5)  9.25 per cent for the period beginning on July 1, 2010, and thereafter; and

     (6)        per cent for the period beginning July 1, 2016, and thereafter;

on the gross rental or gross rental proceeds derived from furnishing transient accommodations."

     SECTION 3.  Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Revenues collected under this chapter shall be distributed as follows, with the excess revenues to be deposited into the general fund:

     (1)  $26,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;

     (2)  $82,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:

         (A)  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 trust fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency trust fund;

     (3)  $103,000,000 for fiscal year 2014-2015, $103,000,000 for fiscal year 2015-2016, and [$93,000,000] for each fiscal year thereafter 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];

         (A)  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;

         (B)  Each county shall expend moneys received under this paragraph exclusively to market and promote tourism and tourism-related activities and events within the respective county; and

          (C)  Each county shall report to the legislature annually on its expenditures pursuant to this paragraph;

     (4)  $3,000,000 shall be allocated to the Turtle Bay conservation easement special fund established under section 201B-8.6 for the payment of debt service on revenue bonds, the proceeds of which were used to acquire the conservation easement in Turtle Bay, Oahu, until the bonds are fully amortized; [and]

     (5)  Of the excess revenues deposited into the general fund pursuant to this subsection, $3,000,000 shall be allocated subject to the mutual agreement of the board of land and natural resources and the board of directors of the Hawaii tourism authority in accordance with the Hawaii tourism authority strategic plan for:

         (A)  The protection, preservation, and enhancement of natural resources important to the visitor industry;

         (B)  Planning, construction, and repair of facilities; and

         (C)  Operation and maintenance costs of public lands connected with enhancing the visitor experience[.]; and

     (6)  1 per cent of the revenues collected under this chapter, not to exceed $4,000,000, shall be deposited as follows:

          (A)  $2,000,000 into the state parks special fund established in section 184-3.4; provided that any expenditure of funds deposited into the state parks special fund pursuant to this subparagraph shall be matched dollar-for-dollar with appropriations from the general fund and matched dollar-for-dollar by the county in which the park is located;

          (B)  The amount in excess of $2,000,000 into the special land and development fund established in section 171-19 to be expended for:

              (i)  The protection, preservation, and enhancement of natural resources important to the visitor industry;

             (ii)  Planning, construction, and repair of facilities;

            (iii)  Operation and maintenance costs of public lands connected with enhancing the visitor experience; and

             (iv)  Administrative costs, including salaries for permanent and temporary staff positions.

     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."

     SECTION 4.  Of the amount deposited into the special land and development fund pursuant to this Act, for fiscal year 2015-2016, $400,000 shall be transferred to the beach restoration special fund under section 171-156, Hawaii Revised Statutes, to provide matching funds for the environmental impact statement associated with the planned beach nourishment project at Kapua on the island of Hawaii.

     SECTION 5. There is appropriated out of the beach restoration special fund the sum of $400,000 or so much thereof as may be necessary for fiscal year 2015-2016 to be matched dollar-for-dollar by the county of Hawaii, for the environmental impact statement associated with the planned beach nourishment project at Kapua on the island of Hawaii; provided that no funds appropriated pursuant to this section shall be expended unless matched dollar-for-dollar with private funds.

     The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

     SECTION 6.  The department of land and natural resources and the Hawaii tourism authority shall seek additional or supplemental funding from the counties, the federal government, and private entities to accomplish the purposes of this Act.

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2015.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Tourism Special Fund; Conservation and Resources Enforcement Special Fund; Transient Accommodations Tax; Appropriation

 

Description:

Amends the rate of the transient accommodations tax (TAT) beginning July 1, 2016.  Changes the allocation of TAT revenues to each county.  Requires each county to expend moneys received from TAT exclusively to market and promote tourism and tourism-related activities and events within the respective county.  Requires each county to report to the legislature annually on its expenditures of the TAT.  Allocates a percentage of TAT revenues to the state parks special fund and to the special land and development fund.  Requires TAT revenues deposited into the special land and development fund to be expended subject to the mutual agreement of the board of land and natural resources and the board of directors of the Hawaii tourism authority an in accordance with the Hawaii tourism authority strategic plan.  Transfers a portion of the amounts deposited into the special land and development fund to the beach restoration special fund and appropriates those funds as matching funds for the environmental impact statement associated with the planned beach nourishment project at Kapua on the island of Hawaii.  Requires the department of land and natural resources and the Hawaii tourism authority to seek additional or supplemental funding from the counties, the federal government, and private entities to accomplish the purposes of this Act.

 

 

 

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