Transfers certain PSC taxes to the harbor special fund for the improvement of cruise ship facilities.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the cruise ship industry has experienced large growth rates and will contribute substantially to Hawaii's economy in the form of new jobs and an increase in tax revenues to the State. The State's passenger terminal infrastructure and facilities need improvement to accommodate the anticipated increase in cruise ship passengers in Hawaii.

The legislature further finds that American Hawaii Cruises has been sailing the SS Independence on weekly cruises in Hawaii for the past twenty years. American Hawaii Cruises has three new vessels scheduled to be placed in service in Hawaii over the next four years if sufficient facilities are available.

The purpose of this Act is to allocate part of the tax revenue stream of vessels placed in service after December 1, 2003, over a nine-year period to finance the necessary passenger cruise facilities around the State as identified in the Leo A. Daly Statewide Passenger Cruise Facility Study. Those public service company tax revenues identified shall be transferred to the department of transportation's harbor fund for this purpose.

SECTION 2. Section 239-10, Hawaii Revised Statutes, is amended to read as follows:

"§239-10 Disposition of revenues. All taxes collected under this chapter shall be state realizations[.]; provided that tax revenues from contract carriers by water engaged primarily in the business of transporting persons between harbors or wharves of the various counties for interisland cruises within the State shall be divided as follows:

The director of taxation may require such forms and information as may be necessary to administer this section."

SECTION 3. Section 266-19, Hawaii Revised Statutes, is amended to read as follows:

"§266-19 Creation of harbor special fund; disposition of harbor special fund. (a) There is created in the treasury of the State the harbor special fund. All moneys received by the department of transportation from the rates and fees pursuant to section 266-17(a)(1) shall be paid into the harbor special fund. The harbor special fund and the second separate harbor special fund heretofore created shall be consolidated into the harbor special fund at such time as there are no longer any revenue bonds payable from the second separate harbor special fund. The harbor reserve fund heretofore created is abolished.

All moneys derived pursuant to this chapter from harbor properties of the statewide system of harbors (excluding properties principally used for recreation or the landing of fish, except properties located at Kewalo Basin, ewa of Ala Moana Park, Honolulu) shall be paid into the harbor special fund and each fiscal year shall be appropriated, applied, or expended by the department of transportation for the statewide system of harbors for any purpose within the jurisdiction, powers, duties, and functions of the department of transportation related to the statewide system of harbors (excluding properties principally used for recreation or the landing of fish, except the properties located at Kewalo Basin, ewa of Ala Moana Park, Honolulu), including, without limitation, the costs of operation, maintenance, and repair of the statewide system of harbors and reserves therefor, and acquisitions (including real property and interests therein), constructions, additions, expansions, improvements, renewals, replacements, reconstruction, engineering, investigation, and planning, for the statewide system of harbors, all or any of which in the judgment of the department of transportation are necessary to the performance of its duties or functions.

(b) At any time the director of transportation may transfer from the harbor special fund created by [paragraph] subsection (a) [of this section], all or any portion of available moneys on deposit in the harbor special fund, except moneys under subsection (c), determined by the director of transportation to be in excess of one hundred fifty per cent of the requirements for the ensuing twelve months for the harbor special fund as permitted by and in accordance with section 37-53. For purposes of such determination, the director of transportation shall take into consideration the amount of federal funds and bond funds on deposit in, and budgeted to be expended from, the harbor special fund during such period, amounts on deposit in the harbor special fund which are encumbered or otherwise obligated, budgeted amounts payable from the harbor special fund during such period, and revenues anticipated to be received by and expenditures to be made from the harbor special fund during such period based on existing agreements and other information for the ensuing twelve months, and such other factors as the director of transportation shall deem appropriate.

(c) All moneys received under section 239-10 by the harbor special fund shall be used exclusively by the department of transportation to finance the necessary passenger cruise facilities around the State as identified in the Leo A. Daly Statewide Passenger Cruise Facility Study. Moneys deposited in the harbor special fund from other sources may not be used for this purpose.

[(c)] (d) All expenditures by the department shall be made on vouchers duly approved by the director of transportation or such other officer as may be designated by the director of transportation."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2001.