REPORT TITLE:
Cruise ships


DESCRIPTION:
Transfers certain PSC taxes to the harbor special fund and
boating special fund for additions and improvements of passenger
cruise ship facilities.  (SB2303 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2303
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                H.D. 2
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 is experiencing tremendous growth 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.  However, to accommodate
 
 5 the anticipated increase in cruise ship passengers in Hawaii, the
 
 6 State's passenger terminal infrastructure and facilities need
 
 7 improvement.
 
 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 passenger cruise vessels to
 
15 finance the improvements and additions to passenger cruise
 
16 facilities around the State as identified in the Leo A. Daly
 
17 Statewide Passenger Cruise Facility Study.  Those public service
 
18 company tax revenues identified shall be transferred to the
 
19 department of transportation's harbor special fund and the
 
20 department of land and natural resources' boating special fund
 
21 for this purpose.
 

 
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 1      SECTION 2.  Section 239-10, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§239-10  Disposition of revenues.  (a)  All taxes collected
 
 4 under this chapter shall be state realizations[.]; provided that
 
 5 tax revenues from contract carriers by water engaged primarily in
 
 6 the business of transporting persons between harbors or wharves
 
 7 of the various counties for interisland cruises within the State:
 
 8      (1)  Shall be deposited as follows:
 
 9           (A)  Tax revenues from the gross income of contract
 
10                carriers received from passenger ticket revenue
 
11                from all vessels in service in Hawaii shall be
 
12                deposited into the general fund except those
 
13                deposited in the harbor special fund established
 
14                under section 266-19 or in the boating special
 
15                fund established under section 248-8 pursuant to
 
16                subparagraph (B);
 
17           (B)  Tax revenues from the gross income of contract
 
18                carriers received from passenger ticket revenue
 
19                from all vessels in service in Hawaii in any year
 
20                shall be deposited into the harbor special fund
 
21                established under section 266-19 and the boating
 
22                special fund established under section 248-8 in
 
23                the following amounts for the following fiscal
 
24                years:
 

 
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 1             Contributions to the Harbor Special Fund
 
 2              Fiscal Years        Amounts to be Deposited
 
 3                  2001                   $175,000
 
 4                  2002                   $450,000
 
 5                  2003                   $600,000
 
 6                  2004                   $750,000
 
 7                  2005                   $900,000
 
 8                  2006                  $1,100,000
 
 9                  2007                  $3,000,000
 
10                2008-2025         $2,900,000 in each year
 
11             Contributions to the Boating Special Fund
 
12              Fiscal Years        Amounts to be Deposited
 
13                  2001                   $325,000
 
14                  2002                   $450,000
 
15                  2003                   $500,000
 
16                  2004                   $575,000
 
17                  2005                   $625,000
 
18                  2006                   $700,000
 
19                  2007                   $665,000
 
20                2008-2020          $620,000 in each year
 
21                  2021                   $370,000
 
22                  2022                   $100,000
 

 
 
 
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 1           (C)  Tax revenues deposited in the harbor special fund
 
 2                and the boating special fund pursuant to
 
 3                subparagraph (B) are intended to provide funds to
 
 4                the harbors division of the department of
 
 5                transportation and the department of land and
 
 6                natural resources, respectively, for a portion of
 
 7                the funding necessary for improvements and
 
 8                additions to the passenger cruise facilities under
 
 9                the jurisdictions of the harbors division of the
 
10                department of transportation and the department of
 
11                land and natural resources, respectively, at the
 
12                ports identified in the Leo A. Daly Statewide
 
13                Passenger Cruise Facility Study, including:
 
14                (i)  Paying the costs of the improvements and
 
15                     additions;
 
16               (ii)  Reimbursing the special funds for the amount
 
17                     of expenditures made for the improvements and
 
18                     additions;
 
19              (iii)  Paying the debt service on revenue bonds
 
20                     issued to finance the improvements and
 
21                     additions; or
 
22               (iv)  Reimbursing the general fund for debt service
 
23                     on general obligation bonds, the proceeds of
 

 
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 1                     which were used to finance the improvements
 
 2                     and additions.
 
 3      (b)  The harbors division of the department of
 
 4 transportation and the department of land and natural resources
 
 5 shall report annually to the legislature on the amounts necessary
 
 6 to make the required improvements and additions to the passenger
 
 7 cruise facilities under their jurisdictions at the ports
 
 8 identified in the Leo A. Daly Statewide Passenger Cruise Facility
 
 9 Study.  The reports shall be submitted to the legislature no
 
10 later than twenty days before the convening of each regular
 
11 session."
 
12      SECTION 3.  Section 248-8, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§248-8  Special funds in treasury of State.  (a)  There are
 
15 created in the treasury of the State three special funds to be
 
16 known[, respectively,] as the state highway fund, the airport
 
17 revenue fund, and the boating special fund.  All taxes collected
 
18 under chapter 243 in each calendar year, except the "county of
 
19 Hawaii fuel tax", "city and county of Honolulu fuel tax", "county
 
20 of Maui fuel tax", and "county of Kauai fuel tax", shall be
 
21 deposited in the state highway fund; provided that:
 
22      (1)  All taxes collected under chapter 243 with respect to
 
23           gasoline or other aviation fuel sold for use in or used
 

 
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 1           for airplanes shall be set aside in the airport revenue
 
 2           fund; and
 
 3      (2)  All taxes collected under chapter 243 with respect to
 
 4           liquid fuel sold for use in or used for small boats
 
 5           shall be deposited in the boating special fund.
 
 6      [As used in this section, "small boats" means all vessels
 
 7 and other watercraft except those operated in overseas
 
 8 transportation beyond the State, and ocean-going tugs and
 
 9 dredges.  The chairperson of the board of land and natural
 
10 resources, from July 1, 1992, and every three years thereafter,
 
11 shall establish standards or formulas that will as equitably as
 
12 possible establish the total taxes collected under chapter 243 in
 
13 each fiscal year that are derived from the sale of liquid fuel
 
14 for use in or used for small boats.  The amount so determined
 
15 shall be deposited in the boating special fund.]
 
16      (b)  An amount equal to 0.3 per cent of the highway fuel
 
17 tax, but not more than $250,000 collected under chapter 243,
 
18 shall be allocated each fiscal year to the special land and
 
19 development fund for purposes of the management, maintenance, and
 
20 development of trails and trail accesses under the jurisdiction
 
21 of the department of land and natural resources established under
 
22 section 198D-2.
 

 
 
 
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 1      (c)  From July 1, 1992, and every three years thereafter,
 
 2 the chairperson of the board of land and natural resources shall
 
 3 establish standards or formulas that will, as equitably as
 
 4 possible, establish the total taxes collected under chapter 243
 
 5 in each fiscal year that are derived from the sale of liquid fuel
 
 6 for use in or used for small boats.  The amount so determined
 
 7 shall be deposited in the boating special fund.
 
 8      (d)  All moneys received under section 239-10 shall be used
 
 9 exclusively by the department of land and natural resources to
 
10 finance the necessary improvements and additions to passenger
 
11 cruise facilities around the State at the ports identified in the
 
12 Leo A. Daly Statewide Passenger Cruise Facility Study.  Funds
 
13 deposited in the boating special fund from other sources may not
 
14 be used for this purpose.
 
15      (e)  As used in this section, "small boats" mean all vessels
 
16 and other watercraft except those operated in overseas
 
17 transportation beyond the State, and ocean-going tugs and
 
18 dredges."
 
19      SECTION 4.  Section 266-19, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§266-19  Creation of harbor special fund; disposition of
 
22 harbor special fund.(a)  There is created in the treasury of
 
23 the State the harbor special fund.  All moneys received by the
 

 
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 1 department of transportation from the rates and fees pursuant to
 
 2 section 266-17(a)(1) shall be paid into the harbor special fund.
 
 3 The harbor special fund and the second separate harbor special
 
 4 fund heretofore created shall be consolidated into the harbor
 
 5 special fund at such time as there are no longer any revenue
 
 6 bonds payable from the second separate harbor special fund.  The
 
 7 harbor reserve fund heretofore created is abolished.
 
 8      All moneys derived pursuant to this chapter from harbor
 
 9 properties of the statewide system of harbors (excluding
 
10 properties principally used for recreation or the landing of
 
11 fish, except properties located at Kewalo Basin, ewa of Ala Moana
 
12 Park, Honolulu) shall be paid into the harbor special fund and
 
13 each fiscal year shall be appropriated, applied, or expended by
 
14 the department of transportation for the statewide system of
 
15 harbors for any purpose within the jurisdiction, powers, duties,
 
16 and functions of the department of transportation related to the
 
17 statewide system of harbors (excluding properties principally
 
18 used for recreation or the landing of fish, except the properties
 
19 located at Kewalo Basin, ewa of Ala Moana Park, Honolulu),
 
20 including, without limitation, the costs of operation,
 
21 maintenance, and repair of the statewide system of harbors and
 
22 reserves therefor, and acquisitions (including real property and
 
23 interests therein), constructions, additions, expansions,
 

 
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 1 improvements, renewals, replacements, reconstruction,
 
 2 engineering, investigation, and planning, for the statewide
 
 3 system of harbors, all or any of which in the judgment of the
 
 4 department of transportation are necessary to the performance of
 
 5 its duties or functions.
 
 6      (b)  At any time the director of transportation may transfer
 
 7 from the harbor special fund created by [paragraph] subsection
 
 8 (a) [of this section], all or any portion of available moneys on
 
 9 deposit in the harbor special fund, except moneys under
 
10 subsection (c), determined by the director of transportation to
 
11 be in excess of one hundred fifty per cent of the requirements
 
12 for the ensuing twelve months for the harbor special fund as
 
13 permitted by and in accordance with section 37-53.  For purposes
 
14 of such determination, the director of transportation shall take
 
15 into consideration [the]:
 
16      (1)  The amount of federal funds and bond funds on deposit
 
17           in, and budgeted to be expended from, the harbor
 
18           special fund during such period[, amounts];
 
19      (2)  Amounts on deposit in the harbor special fund which are
 
20           encumbered or otherwise obligated[, budgeted];
 
21      (3)  Budgeted amounts payable from the harbor special fund
 
22           during such period, and revenues anticipated to be
 
23           received by and expenditures to be made from the harbor
 

 
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 1           special fund during such period based on existing
 
 2           agreements and other information for the ensuing twelve
 
 3           months[,]; and [such other]
 
 4      (4)  Other factors as the director of transportation shall
 
 5           deem appropriate.
 
 6      (c)  All moneys received under section 239-10, other
 
 7 sections under which the passenger head tax is assessed, and any
 
 8 other sections under which passenger vessels contribute funds to
 
 9 the harbor special fund, shall be used exclusively by the
 
10 department of transportation to finance the necessary
 
11 improvements and additions to passenger cruise facilities around
 
12 the State as identified in the Leo A. Daly Statewide Passenger
 
13 Cruise Facility Study.  Funds deposited in the harbor special
 
14 fund from other sources may not be used for this purpose.
 
15     [(c)](d)  All expenditures by the department shall be made on
 
16 vouchers duly approved by the director of transportation or such
 
17 other officer as may be designated by the director of
 
18 transportation."
 
19      SECTION 5.  Statutory material to be repealed is bracketed.
 
20 New statutory material is underscored.
 
21      SECTION 6.  This Act shall take effect on July 1, 2020.