REPORT TITLE:
Cruise ships


DESCRIPTION:
Transfers certain PSC taxes to the harbor special fund for the
improvement of cruise ship facilities.  (HB2212 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2212
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT
RELATING TO HARBORS.



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

 1      SECTION 1.  The legislature finds that the cruise ship
 
 2 industry has experienced large growth rates and will contribute
 
 3 substantially to Hawaii's economy in the form of new jobs and an
 
 4 increase in tax revenues to the State.  The State's passenger
 
 5 terminal infrastructure and facilities need improvement to
 
 6 accommodate the anticipated increase in cruise ship passengers in
 
 7 Hawaii.
 
 8      The legislature further finds that American Hawaii Cruises
 
 9 has been sailing the SS Independence on weekly cruises in Hawaii
 
10 for the past twenty years.  American Hawaii Cruises has three new
 
11 vessels scheduled to be placed in service in Hawaii over the next
 
12 four years if sufficient facilities are available.
 
13      The purpose of this Act is to allocate part of the Public
 
14 Service Company tax revenue stream of vessels placed in service
 
15 after December 31, 2000, over a nine-year period to finance the
 
16 necessary passenger cruise facilities around the State as
 
17 identified in the Leo A. Daly Statewide Passenger Cruise Facility
 
18 Study.  Those public service tax revenues identified shall be
 
19 transferred to the department of transportation's harbor fund for
 
20 this purpose.
 
21      SECTION 2.  Section 239-10, Hawaii Revised Statutes, is
 

 
Page 2                                                     2212
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "§239-10  Disposition of revenues.  All taxes collected
 
 3 under this chapter shall be state realizations[.]; provided that
 
 4 tax revenues from contract carriers by water engaged primarily in
 
 5 the business of transporting persons between harbors or wharves
 
 6 of the various counties for interisland cruises within the State
 
 7 shall be divided as follows:
 
 8      (1)  The first $3,000,000 of tax revenues from the gross
 
 9           income of contract carriers received from passenger
 
10           ticket revenue from all vessels in service in Hawaii
 
11           shall be deposited into the general fund;
 
12      (2)  Tax revenues from the gross income of contract carriers
 
13           received from passenger ticket revenue from all vessels
 
14           in service in Hawaii in any year in excess of the
 
15           amount of three million dollars ($3,000,000) shall be
 
16           deposited into the harbor special fund established
 
17           under section 266-19 and expended for making
 
18           improvements and additions to the passenger cruise
 
19           facilities under its jurisdiction as identified in the
 
20           Leo A. Daly Statewide Passenger Cruise Facility Study,
 
21           or reimbursement of the harbor special fund for
 
22           expenditures made for such purpose, until the total
 

 
 
 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           amount of deposits pursuant to this section is equal to
 
 2           the lesser of (i) ninety-seven million two hundred
 
 3           thousand dollars ($97,200,000) or (ii) the amount
 
 4           reported by the department of transportation, harbors
 
 5           division to the legislature as the amount necessary to
 
 6           make the required improvements and additions to the
 
 7           passenger cruise facilities under its jurisdiction as
 
 8           identified in the Leo A. Daly Statewide Passenger
 
 9           Cruise Facility Study.
 
10      SECTION 3.  Section 266-19, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§266-19  Creation of harbor special fund; disposition of
 
13 harbor special fund.(a)  There is created in the treasury of
 
14 the State the harbor special fund.  All moneys received by the
 
15 department of transportation from the rates and fees pursuant to
 
16 section 266-17(a)(1) shall be paid into the harbor special fund.
 
17 The harbor special fund and the second separate harbor special
 
18 fund heretofore created shall be consolidated into the harbor
 
19 special fund at such time as there are no longer any revenue
 
20 bonds payable from the second separate harbor special fund.  The
 
21 harbor reserve fund heretofore created is abolished.
 
22      All moneys derived pursuant to this chapter from harbor
 
23 properties of the statewide system of harbors (excluding
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 properties principally used for recreation or the landing of
 
 2 fish, except properties located at Kewalo Basin, ewa of Ala Moana
 
 3 Park, Honolulu) shall be paid into the harbor special fund and
 
 4 each fiscal year shall be appropriated, applied, or expended by
 
 5 the department of transportation for the statewide system of
 
 6 harbors for any purpose within the jurisdiction, powers, duties,
 
 7 and functions of the department of transportation related to the
 
 8 statewide system of harbors (excluding properties principally
 
 9 used for recreation or the landing of fish, except the properties
 
10 located at Kewalo Basin, ewa of Ala Moana Park, Honolulu),
 
11 including, without limitation, the costs of operation,
 
12 maintenance and repair of the statewide system of harbors and
 
13 reserves therefor, and acquisitions (including real property and
 
14 interests therein), constructions, additions, expansions,
 
15 improvements, renewals, replacements, reconstruction,
 
16 engineering, investigation, and planning, for the statewide
 
17 system of harbors, all or any of which in the judgment of the
 
18 department of transportation are necessary to the performance of
 
19 its duties or functions.
 
20      (b)  At any time the director of transportation may transfer
 
21 from the harbor special fund created by [paragraph] subsection
 
22 (a) [of this section], all or any portion of available moneys on
 
23 deposit in the harbor special fund, except moneys under
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 subsection (c), determined by the director of transportation to
 
 2 be in excess of one hundred fifty per cent of the requirements
 
 3 for the ensuing twelve months for the harbor special fund as
 
 4 permitted by and in accordance with section 37-53.  For purposes
 
 5 of such determination, the director of transportation shall take
 
 6 into consideration the amount of federal funds and bond funds on
 
 7 deposit in, and budgeted to be expended from, the harbor special
 
 8 fund during such period, amounts on deposit in the harbor special
 
 9 fund which are encumbered or otherwise obligated, budgeted
 
10 amounts payable from the harbor special fund during such period,
 
11 and revenues anticipated to be received by and expenditures to be
 
12 made from the harbor special fund during such period based on
 
13 existing agreements and other information for the ensuing twelve
 
14 months, and such other factors as the director of transportation
 
15 shall deem appropriate.
 
16      (c) All moneys received under section 239-10, other sections
 
17 under which the passenger head tax is assessed, and any other
 
18 sections under which passenger vessels contribute funds to the
 
19 harbor special fund, shall be used exclusively by the department
 
20 of transportation to finance the necessary cruise facilities
 
21 around the State as identified in the Leo A. Daly Statewide
 
22 Passenger Cruise Facility Study.  Funds deposited in the harbor
 
23 special fund from other sources may not be used for such purpose.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1     [(c)] (d)  All expenditures by the department shall be made
 
 2 on vouchers duly approved by the director of transportation or
 
 3 such other officer as may be designated by the director of
 
 4 transportation."
 
 5      SECTION 4.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 5.  This Act shall take effect on July 1, 2025.