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.  (CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2303
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                H.D. 2
STATE OF HAWAII                                            C.D. 1
                                                             
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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.
 

 
Page 2                                                     2303
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        C.D. 1

 
 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:
 

 
Page 3                                                     2303
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        C.D. 1

 
 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
 
23           (C)  Tax revenues deposited in the harbor special fund
 
24                and the boating special fund pursuant to
 

 
Page 4                                                     2303
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        C.D. 1

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

 
Page 5                                                     2303
                                     S.B. NO.           S.D. 2
                                                        H.D. 2
                                                        C.D. 1

 
 1      (b)  The harbors division of the department of
 
 2 transportation and the department of land and natural resources
 
 3 shall report annually to the legislature on the amounts necessary
 
 4 to make the required improvements and additions to the passenger
 
 5 cruise facilities under their jurisdictions at the ports
 
 6 identified in the Leo A. Daly Statewide Passenger Cruise Facility
 
 7 Study.  The reports shall be submitted to the legislature no
 
 8 later than twenty days before the convening of each regular
 
 9 session."
 
10      SECTION 3.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 4.  This Act shall take effect upon approval.