REPORT TITLE:
Fireworks


DESCRIPTION:
Increases penalties and licensing fees for fireworks.  Increases
the excise tax on fireworks to 150%.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1630
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO FIREWORKS REGULATION.



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

 1      SECTION 1.  The legislature finds that the use of fireworks
 
 2 on New Year's Eve is considered a nuisance by some residents
 
 3 while others embrace this practice as a part of their heritage.
 
 4 Fireworks in Hawaii have been a way of life for most of the
 
 5 people of Hawaii and, as culture dictates, it should continue.
 
 6 However, there is concern for the health and safety of our
 
 7 residents.
 
 8      Therefore, the legislature shall convene a task force of
 
 9 culturally responsible persons representing organizations who
 
10 will provide us with the guidelines for the use of fireworks from
 
11 a cultural perspective.  The legislature also feels that the
 
12 current law requires enforcement and accompanying stiff penalties
 
13 for those who choose to violate the law.  In addition, the
 
14 legislature shall include in the statute that expended fireworks
 
15 shall be considered evidence and shall not be expended on public
 
16 property.
 
17      SECTION 2.  Section 132D-3, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "[[]§132D-3[]]  Permissible uses of non-aerial common
 

 


 

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 1 fireworks.  Non-aerial common fireworks may be set off, ignited,
 
 2 discharged, or otherwise caused to explode within the State only:
 
 3      (1)  From 9:00 p.m. on New Year's Eve to 1:00 a.m. on New
 
 4           Year's Day; from [9:00 p.m.]            Chinese New
 
 5           Year's Eve to [1:00 a.m. Chinese New Year's Day;]
 
 6                      Chinese New Year's Eve; and from 9:00 p.m.
 
 7           on the Fourth of July to 1:00 a.m. on July 5; or
 
 8      (2)  From 9:00 a.m. to 9:00 p.m. as allowed by permit
 
 9           pursuant to section 132D-10 if the proposed use is to
 
10           occur at any time other than during the periods
 
11           prescribed in paragraph (1)."
 
12      SECTION 3.  Section 132D-11, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "[[]§132D-11[]]  Fee.  The fee for the license required
 
15 under section 132D-7 shall not [exceed $110] be less than $1,000
 
16 for each year or fraction of a year in which the licensee plans
 
17 to conduct business and shall be payable to the department.  The
 
18 fee for the permit required under section 132D-7 shall be no
 
19 [greater than $25 for each year or fraction of a year in which]
 
20 less than $100 for each retail location where the permittee plans
 
21 to conduct business and shall be payable to the county in which
 
22 the permitted activity is to occur."
 
23      SECTION 4.  Section 132D-14, Hawaii Revised Statutes, is
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "[[]§132D-14[]]  Penalty.(a)  Any person importing aerial
 
 3 common fireworks or special fireworks into the State without
 
 4 first having obtained a license as required by section 132D-7
 
 5 shall be guilty [of a class C felony.] as follows:
 
 6      (1)  For a first offense, a class C felony, but subject to a
 
 7           minimum fine of $10,000;
 
 8      (2)  For a second offense occurring within two years of a
 
 9           previous offense, a class B felony, but subject to a
 
10           minimum fine of $25,000; and
 
11      (3)  For a third or subsequent offense occurring within two
 
12           years of a previous offense, a class A felony, but
 
13           subject to a minimum fine of $250,000.
 
14      (b)  Except as provided in subsection (a), any person
 
15 violating any other provision of this chapter, shall be guilty of
 
16 a petty misdemeanor.  The person shall also be subject to a
 
17 minimum fine of $1,000 for the following:
 
18      (1)  A violation of section 132D-13;
 
19      (2)  A violation of section 132D-3;
 
20      (3)  A violation of section 132D-10; provided that each
 
21           incident of unlawful setting off, ignition, or
 
22           discharge of fireworks shall constitute a separate
 
23           violation; and
 

 
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 1      (4)  Evidence of expended fireworks on public property."
 
 2      SECTION 5.  Section 237-13, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§237-13  Imposition of tax.  There is hereby levied and
 
 5 shall be assessed and collected annually privilege taxes against
 
 6 persons on account of their business and other activities in the
 
 7 State measured by the application of rates against values of
 
 8 products, gross proceeds of sales, or gross income, whichever is
 
 9 specified, as follows:
 
10      (1)  Tax on manufacturers.
 
11           (A)  Upon every person engaging or continuing within
 
12                the State in the business of manufacturing,
 
13                including compounding, canning, preserving,
 
14                packing, printing, publishing, milling,
 
15                processing, refining, or preparing for sale,
 
16                profit, or commercial use, either directly or
 
17                through the activity of others, in whole or in
 
18                part, any article or articles, substance or
 
19                substances, commodity or commodities, the amount
 
20                of the tax to be equal to the value of the
 
21                articles, substances, or commodities,
 
22                manufactured, compounded, canned, preserved,
 
23                packed, printed, milled, processed, refined, or
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                prepared, for sale, as shown by the gross proceeds
 
 2                derived from the sale thereof by the manufacturer
 
 3                or person compounding, preparing, or printing
 
 4                them, multiplied by one-half of one per cent.
 
 5           (B)  The measure of the tax on manufacturers is the
 
 6                value of the entire product for sale, regardless
 
 7                of the place of sale or the fact that deliveries
 
 8                may be made to points outside the State.
 
 9           (C)  If any person liable for the tax on manufacturers
 
10                ships or transports the person's product, or any
 
11                part thereof, out of the State, whether in a
 
12                finished or unfinished condition, or sells the
 
13                same for delivery outside of the State (for
 
14                example, consigned to a mainland purchaser via
 
15                common carrier f.o.b. Honolulu), the value of the
 
16                products in the condition or form in which they
 
17                exist immediately before entering interstate or
 
18                foreign commerce, determined as hereinafter
 
19                provided, shall be the basis for the assessment of
 
20                the tax imposed by this paragraph.  This tax shall
 
21                be due and payable as of the date of entry of the
 
22                products into interstate or foreign commerce,
 
23                whether the products are then sold or not.  The
 

 
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 1                department of taxation shall determine the basis
 
 2                for assessment, as provided by this paragraph, as
 
 3                follows:
 
 4                (i)  If the products at the time of their entry
 
 5                     into interstate or foreign commerce already
 
 6                     have been sold, the gross proceeds of sale,
 
 7                     less the transportation expenses, if any,
 
 8                     incurred in realizing the gross proceeds for
 
 9                     transportation from the time of entry of the
 
10                     products into interstate or foreign commerce,
 
11                     including insurance and storage in transit,
 
12                     shall be the measure of the value of the
 
13                     products.
 
14               (ii)  If the products have not been sold at the
 
15                     time of their entry into interstate or
 
16                     foreign commerce, and in cases governed by
 
17                     clause (i) in which the products are sold
 
18                     under circumstances such that the gross
 
19                     proceeds of sale are not indicative of the
 
20                     true value of the products, the value of the
 
21                     products constituting the basis for
 
22                     assessment shall correspond as nearly as
 
23                     possible to the gross proceeds of sales for
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                     delivery outside the State, adjusted as
 
 2                     provided in clause (i), or if sufficient data
 
 3                     are not available, sales in the State, of
 
 4                     similar products of like quality and
 
 5                     character and in similar quantities, made by
 
 6                     the taxpayer (unless not indicative of the
 
 7                     true value) or by others.  Sales outside the
 
 8                     State, adjusted as provided in clause (i),
 
 9                     may be considered when they constitute the
 
10                     best available data.  The department shall
 
11                     prescribe uniform and equitable rules for
 
12                     ascertaining the values.
 
13              (iii)  At the election of the taxpayer and with the
 
14                     approval of the department, the taxpayer may
 
15                     make the taxpayer's returns under clause (i)
 
16                     even though the products have not been sold
 
17                     at the time of their entry into interstate or
 
18                     foreign commerce.
 
19               (iv)  In all cases in which products leave the
 
20                     State in an unfinished condition, the basis
 
21                     for assessment shall be adjusted so as to
 
22                     deduct the portion of the value as is
 
23                     attributable to the finishing of the goods
 

 
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 1                     outside the State.
 
 2      (2)  Tax on business of selling tangible personal property;
 
 3           producing.
 
 4           (A)  Upon every person engaging or continuing in the
 
 5                business of selling any tangible personal property
 
 6                whatsoever (not including, however, bonds or other
 
 7                evidence of indebtedness, or stocks), there is
 
 8                likewise hereby levied, and shall be assessed and
 
 9                collected, a tax equivalent to four per cent of
 
10                the gross proceeds of sales of the business;
 
11                provided that insofar as certain retailing is
 
12                taxed by section 237-16, the tax shall be that
 
13                levied by section 237-16, and in the case of a
 
14                wholesaler, the tax shall be equal to one-half of
 
15                one per cent of the gross proceeds of sales of the
 
16                business.  Upon every person engaging or
 
17                continuing within this State in the business of a
 
18                producer, the tax shall be equal to one-half of
 
19                one per cent of the gross proceeds of sales of the
 
20                business, or the value of the products, for sale,
 
21                if sold for delivery outside the State or shipped
 
22                or transported out of the State, and the value of
 
23                the products shall be determined in the same
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                manner as the value of manufactured products
 
 2                covered in the cases under paragraph (1)(C).
 
 3           (B)  Gross proceeds of sales of tangible property in
 
 4                interstate and foreign commerce shall constitute a
 
 5                part of the measure of the tax imposed on persons
 
 6                in the business of selling tangible personal
 
 7                property, to the extent, under the conditions, and
 
 8                in accordance with the provisions of the
 
 9                Constitution of the United States and the Acts of
 
10                the Congress of the United States which may be now
 
11                in force or may be hereafter adopted, and whenever
 
12                there occurs in the State an activity to which,
 
13                under the Constitution and Acts of Congress, there
 
14                may be attributed gross proceeds of sales, the
 
15                gross proceeds shall be so attributed.
 
16           (C)  No manufacturer or producer, engaged in such
 
17                business in the State and selling the
 
18                manufacturer's or producer's products for delivery
 
19                outside of the State (for example, consigned to a
 
20                mainland purchaser via common carrier f.o.b.
 
21                Honolulu), shall be required to pay the tax
 
22                imposed in this chapter for the privilege of so
 
23                selling the products, and the value or gross
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                proceeds of sales of the products shall be
 
 2                included only in determining the measure of the
 
 3                tax imposed upon the manufacturer or producer.
 
 4           (D)  When a manufacturer or producer, engaged in such
 
 5                business in the State, also is engaged in selling
 
 6                the manufacturer's or producer's products in the
 
 7                State at wholesale, retail, or in any other
 
 8                manner, the tax for the privilege of engaging in
 
 9                the business of selling the products in the State
 
10                shall apply to the manufacturer or producer as
 
11                well as the tax for the privilege of manufacturing
 
12                or producing in the State, and the manufacturer or
 
13                producer shall make the returns of the gross
 
14                proceeds of the wholesale, retail, or other sales
 
15                required for the privilege of selling in the
 
16                State, as well as making the returns of the value
 
17                or gross proceeds of sales of the products
 
18                required for the privilege of manufacturing or
 
19                producing in the State.  The manufacturer or
 
20                producer shall pay the tax imposed in this chapter
 
21                for the privilege of selling its products in the
 
22                State, and the value or gross proceeds of sales of
 
23                the products, thus subjected to tax, may be
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                deducted insofar as duplicated as to the same
 
 2                products by the measure of the tax upon the
 
 3                manufacturer or producer for the privilege of
 
 4                manufacturing or producing in the State; except
 
 5                that no producer of agricultural products who
 
 6                sells the products to a purchaser who will process
 
 7                the products outside the State shall be required
 
 8                to pay the tax imposed in this chapter for the
 
 9                privilege of producing or selling those products.
 
10           (E)  A taxpayer selling to a federal cost-plus
 
11                contractor may make the election provided for by
 
12                paragraph (3)(C), and in that case the tax shall
 
13                be computed pursuant to the election,
 
14                notwithstanding this paragraph or paragraph (1) to
 
15                the contrary.
 
16           (F)  The department, by rule, may provide that a seller
 
17                may take from the purchaser of tangible personal
 
18                property a certificate, in a form as the
 
19                department shall prescribe, certifying that the
 
20                sale is a sale at wholesale.  If the certificate
 
21                is so provided for by rule of the department:
 
22                (i)  Any purchaser who furnishes a certificate
 
23                     shall be obligated to pay to the seller, upon
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                     demand, if the sale in fact is not at
 
 2                     wholesale, the amount of the additional tax
 
 3                     which by reason thereof is imposed upon the
 
 4                     seller; and
 
 5               (ii)  The absence of a certificate, unless the
 
 6                     sales of the business are exclusively at
 
 7                     wholesale, in itself shall give rise to the
 
 8                     presumption that the sale is not at
 
 9                     wholesale.
 
10      (3)  Tax upon contractors.
 
11           (A)  Upon every person engaging or continuing within
 
12                the State in the business of contracting, the tax
 
13                shall be equal to four per cent of the gross
 
14                income of the business; provided that insofar as
 
15                the business of contracting is taxed by section
 
16                237-16, which relates to certain retailing, the
 
17                tax shall be that levied by section 237-16.
 
18           (B)  In computing the tax levied under this paragraph
 
19                or section 237-16, there shall be deducted from
 
20                the gross income of the taxpayer so much thereof
 
21                as has been included in the measure of the tax
 
22                levied under subparagraph (A) or section 237-16,
 
23                on:
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                (i)  Another taxpayer who is a contractor, as
 
 2                     defined in section 237-6;
 
 3               (ii)  A specialty contractor, duly licensed by the
 
 4                     department of commerce and consumer affairs
 
 5                     pursuant to section 444-9, in respect of the
 
 6                     specialty contractor's business; or
 
 7              (iii)  A specialty contractor who is not licensed by
 
 8                     the department of commerce and consumer
 
 9                     affairs pursuant to section 444-9, but who
 
10                     performs contracting activities on federal
 
11                     military installations and nowhere else in
 
12                     this State;
 
13                but any person claiming a deduction under this
 
14                paragraph shall be required to show in the
 
15                person's return the name and general excise number
 
16                of the person paying the tax on the amount
 
17                deducted by the person.
 
18           (C)  In computing the tax levied under this paragraph
 
19                against any federal cost-plus contractor, there
 
20                shall be excluded from the gross income of the
 
21                contractor so much thereof as fulfills the
 
22                following requirements:
 
23                (i)  The gross income exempted shall constitute
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                     reimbursement of costs incurred for
 
 2                     materials, plant, or equipment purchased from
 
 3                     a taxpayer licensed under this chapter, not
 
 4                     exceeding the gross proceeds of sale of the
 
 5                     taxpayer on account of the transaction; and
 
 6               (ii)  The taxpayer making the sale shall have
 
 7                     certified to the department that the taxpayer
 
 8                     is taxable with respect to the gross proceeds
 
 9                     of the sale, and that the taxpayer elects to
 
10                     have the tax on gross income computed the
 
11                     same as upon a sale to the state government.
 
12           (D)  A person who, as a business or as a part of a
 
13                business in which the person is engaged, erects,
 
14                constructs, or improves any building or structure,
 
15                of any kind or description, or makes, constructs,
 
16                or improves any road, street, sidewalk, sewer, or
 
17                water system, or other improvements on land held
 
18                by the person (whether held as a leasehold, fee
 
19                simple, or otherwise), upon the sale or other
 
20                disposition of the land or improvements, even if
 
21                the work was not done pursuant to a contract,
 
22                shall be liable to the same tax as if engaged in
 
23                the business of contracting, unless the person
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                shows that at the time the person was engaged in
 
 2                making the improvements it was, and for the period
 
 3                of at least one year after completion of the
 
 4                building, structure, or other improvements, it
 
 5                continued to be the person's purpose to hold and
 
 6                not sell or otherwise dispose of the land or
 
 7                improvements.  The tax in respect of the
 
 8                improvements shall be measured by the amount of
 
 9                the proceeds of the sale or other disposition that
 
10                is attributable to the erection, construction, or
 
11                improvement of such building or structure, or the
 
12                making, constructing, or improving of the road,
 
13                street, sidewalk, sewer, or water system, or other
 
14                improvements.  The measure of tax in respect of
 
15                the improvements shall not exceed the amount which
 
16                would have been taxable had the work been
 
17                performed by another, subject as in other cases to
 
18                the deductions allowed by subparagraph (B).  Upon
 
19                the election of the taxpayer, this paragraph may
 
20                be applied notwithstanding the improvements were
 
21                not made by the taxpayer, or were not made as a
 
22                business or as a part of a business, or were made
 
23                with the intention of holding the same.  However,
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1                this paragraph shall not apply in respect of any
 
 2                proceeds that constitute or are in the nature of
 
 3                rent; all such gross income shall be taxable under
 
 4                paragraph [(10);] (11); provided that insofar as
 
 5                the business of renting or leasing real property
 
 6                under a lease is taxed under section 237-16.5, the
 
 7                tax shall be levied by section 237-16.5.
 
 8      (4)  Tax upon theaters, amusements, radio broadcasting
 
 9           stations, etc.  Upon every person engaging or
 
10           continuing within the State in the business of
 
11           operating a theater, opera house, moving picture show,
 
12           vaudeville, amusement park, dance hall, skating rink,
 
13           radio broadcasting station, or any other place at which
 
14           amusements are offered to the public, the tax shall be
 
15           equal to four per cent of the gross income of the
 
16           business.
 
17      (5)  Tax upon sales representatives, etc.  Upon every person
 
18           classified as a representative or purchasing agent
 
19           under section 237-1, engaging or continuing within the
 
20           State in the business of performing services for
 
21           another, other than as an employee, there is likewise
 
22           hereby levied and shall be assessed and collected a tax
 
23           equal to four per cent of the commissions and other
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1           compensation attributable to the services so rendered
 
 2           by the person.
 
 3      (6)  Tax on service business.  Upon every person engaging or
 
 4           continuing within the State in any service business or
 
 5           calling not otherwise specifically taxed under this
 
 6           chapter, there is likewise hereby levied and shall be
 
 7           assessed and collected a tax equal to four per cent of
 
 8           the gross income of the business; provided that where
 
 9           any person engaging or continuing within the State in
 
10           any service business or calling renders those services
 
11           upon the order of or at the request of another taxpayer
 
12           who is engaged in the service business and who, in
 
13           fact, acts as or acts in the nature of an intermediary
 
14           between the person rendering those services and the
 
15           ultimate recipient of the benefits of those services,
 
16           so much of the gross income as is received by the
 
17           person rendering the services shall be subjected to the
 
18           tax at the rate of one-half of one per cent and all of
 
19           the gross income received by the intermediary from the
 
20           principal shall be subjected to a tax at the rate of
 
21           four per cent; and provided that where any person is
 
22           engaged in the business of selling interstate or
 
23           foreign common carrier telecommunication services
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1           within and without the State, the tax shall be imposed
 
 2           on that portion of gross income received by a person
 
 3           from service which is originated or terminated in this
 
 4           State and is charged to a telephone number, customer,
 
 5           or account in this State notwithstanding any other
 
 6           state law (except for the exemption under section
 
 7           237-23(a)(1)) to the contrary.  If, under the
 
 8           Constitution and laws of the United States, the entire
 
 9           gross income as determined under this paragraph of a
 
10           business selling interstate or foreign common carrier
 
11           telecommunication services cannot be included in the
 
12           measure of the tax, the gross income shall be
 
13           apportioned as provided in section 237-21; provided
 
14           that the apportionment factor and formula shall be the
 
15           same for all persons providing those services in the
 
16           State.
 
17      (7)  Tax on insurance solicitors and agents.  Upon every
 
18           person engaged as a licensed solicitor, general agent,
 
19           or subagent pursuant to chapter 431, there is hereby
 
20           levied and shall be assessed and collected a tax equal
 
21           to .15 per cent of the commissions due to that
 
22           activity.
 
23      (8)  Professions.  Upon every person engaging or continuing
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1           within the State in the practice of a profession,
 
 2           including those expounding the religious doctrines of
 
 3           any church, there is likewise hereby levied and shall
 
 4           be assessed and collected a tax equal to four per cent
 
 5           of the gross income on the practice or exposition.
 
 6      (9)  Tax on receipts of sugar benefit payments.  Upon the
 
 7           amounts received from the United States government by
 
 8           any producer of sugar (or the producer's legal
 
 9           representative or heirs), as defined under and by
 
10           virtue of the Sugar Act of 1948, as amended, or other
 
11           Acts of the Congress of the United States relating
 
12           thereto, there is hereby levied a tax of one-half of
 
13           one per cent of the gross amount received, provided
 
14           that the tax levied hereunder on any amount so received
 
15           and actually disbursed to another by a producer in the
 
16           form of a benefit payment shall be paid by the person
 
17           or persons to whom the amount is actually disbursed,
 
18           and the producer actually making a benefit payment to
 
19           another shall be entitled to claim on the producer's
 
20           return a deduction from the gross amount taxable
 
21           hereunder in the sum of the amount so disbursed.  The
 
22           amounts taxed under this paragraph shall not be taxable
 
23           under any other paragraph, subsection, or section of
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1           this chapter.
 
 2     (10)  Tax on fireworks licensees.  Upon every person engaging
 
 3           or continuing within the State in any activity for
 
 4           which a license is required under section 132D-7
 
 5           relating to the importation, storage, or sale of
 
 6           fireworks, there is hereby levied and shall be assessed
 
 7           and collected, a tax equal to one hundred fifty per
 
 8           cent of the gross income thereof.
 
 9     (11)  Tax on other business.  Upon every person engaging or
 
10           continuing within the State in any business, trade,
 
11           activity, occupation, or calling not included in the
 
12           preceding paragraphs or any other provisions of this
 
13           chapter, there is likewise hereby levied and shall be
 
14           assessed and collected, a tax equal to four per cent of
 
15           the gross income thereof.  In addition, the rate
 
16           prescribed by this paragraph shall apply to a business
 
17           taxable under one or more of the preceding paragraphs
 
18           or other provisions of this chapter, as to any gross
 
19           income thereof not taxed thereunder as gross income or
 
20           gross proceeds of sales or by taxing an equivalent
 
21           value of products, unless specifically exempted."
 
22      SECTION 6.  Section 237-31, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1      "§237-31  Remittances.  All remittances of taxes imposed by
 
 2 this chapter shall be made by money, bank draft, check, cashier's
 
 3 check, money order, or certificate of deposit to the office of
 
 4 the department of taxation to which the return was transmitted.
 
 5 The department shall issue its receipts therefor to the taxpayer
 
 6 and shall pay the moneys into the state treasury as a state
 
 7 realization, to be kept and accounted for as provided by law;
 
 8 provided that [the]:
 
 9      (1)  The sum from all general excise tax revenues realized
 
10           by the State, excluding revenues realized under section
 
11           237-13(10), that represents the difference between
 
12           $90,000,000 and the proceeds from the sale of any
 
13           general obligation bonds authorized for that fiscal
 
14           year for the purposes of the state educational
 
15           facilities improvement special fund shall be deposited
 
16           in the state treasury in each fiscal year to the credit
 
17           of the state educational facilities improvement special
 
18           fund; [provided further that a]
 
19      (2)  A sum, not to exceed $5,000,000, from all general
 
20           excise tax revenues realized by the State shall be
 
21           deposited in the state treasury in each fiscal year to
 
22           the credit of the compound interest bond reserve
 
23           fund[.]; and
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1      (3)  The sum from all excise tax revenues realized by the
 
 2           State under section 237-13(10) on the importation,
 
 3           storage, and sale of fireworks shall be distributed as
 
 4           follows:
 
 5           (A)  Two-thirds of the revenues collected under this
 
 6                section shall be retained by the State; and
 
 7           (B)  Of the remainder, each county shall receive a
 
 8                proportionate share based on the relationship that
 
 9                the revenues collected under section 237-13(10)
 
10                for a county bears to the total revenues collected
 
11                under section 237-13(10) for all counties;
 
12                provided that for each county, the county's
 
13                proportionate share of the revenues shall be
 
14                distributed equally between the county departments
 
15                providing police and fire protection services."
 
16      SECTION 7.  There is created a fireworks cultural task force
 
17 to study the significance of fireworks as it relates to Asian-
 
18 Pacific cultural groups.  The task force shall be
 
19 administratively attached to the state fire council.
 
20      The commission shall consist of twelve members, which shall
 
21 be appointed by the director of labor and industrial relations
 
22 from lists of nominees submitted by Asian-Pacific cultural
 
23 groups, organizations, and associations who have been registered
 

 
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                                     S.B. NO.           1630
                                                        
                                                        

 
 1 with the department of commerce and consumer affairs as of
 
 2 January 1, 1999.  The appointments shall be exempt from section
 
 3 26-34.  Five of the members shall represent Chinese and Japanese
 
 4 cultural groups, organizations, and associations.  The remaining
 
 5 seven members may represent Filipino, Portuguese, or Korean
 
 6 cultural groups, organizations, and associations.  If a vacancy
 
 7 occurs, the vacancy shall be filled for the unexpired term in the
 
 8 same manner as the office was previously filled.  The members
 
 9 shall serve without compensation but shall be reimbursed for all
 
10 necessary expenses, including travel expenses, incurred in the
 
11 performance of their official duties.
 
12      The task force shall submit its findings and recommendations
 
13 to the legislature no later than twenty days prior to the
 
14 convening of the regular session of 2000, at which time the task
 
15 force will disband.
 
16      SECTION 8.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 9.  This Act shall take effect upon its approval.
 
19 
 
20                           INTRODUCED BY:  _______________________