HB2323 HD1

SECTION 1. Section 171-156, Hawaii Revised Statutes, is amended to read as follows:

"[[]§171-156[]] Beach restoration special fund. (a) There is established in the state treasury a special fund to be designated as the "beach restoration special fund" to carry out the purposes of this part. The following moneys shall be deposited into the beach restoration special fund:

(1) Proceeds from the lease or development of public coastal lands designated pursuant to a beach restoration plan, subject to the Hawaiian Homes Commission Act of 1920, as amended, and section 5(f) of the Admission Act of 1959;

(2) Proceeds from the lease of public lands pursuant to this part for an existing seawall or revetment;

(3) Fines collected for unauthorized shoreline structures on state submerged land or conservation district land;

(4) Appropriations made by the legislature for deposit into this fund;

(5) Donations and contributions made by private individuals or organizations for deposit into this fund;

(6) Fees collected for the processing of applications for coastal and beach erosion control projects; and

(7) Grants provided by governmental agencies or any other source.

(b) The beach restoration special fund may be used by the department for one or more of the following purposes:

(1) Planning, designing, development, or implementation of beach restoration projects pursuant to this part; and

(2) Providing grants to the counties, nongovernmental organizations, and the University of Hawaii for the restoration of beach lands and for research or engineering studies necessary to support beach restoration projects, subject to this part.

(c) There is established within the beach restoration special fund a sub-account to be known as the resort beach restoration fund to be administered by the department, into which shall be deposited general funds appropriated by the legislature and the revenues prescribed by section 237D-6.5(b)(2)(C); provided that:

(1) No funds shall be released for expenditure from the resort beach restoration fund unless matched by non-state funds on at least a one-to-one basis;

(2) No funds shall be released for expenditure from the resort beach restoration fund unless at least fifty per cent of the funds released are funds transferred from the tourism special fund pursuant to section 237D-6.5(b)(2)(C); and

(3) Funds transferred from the tourism special fund pursuant to section 237D-6.5(b)(2)(C) shall not be considered as non-state matching funds, either directly or indirectly.

All investment earnings from the moneys in the resort beach restoration fund shall be credited back to the resort beach restoration fund.

(d) Moneys in the resort beach restoration fund shall be used to provide for the development and restoration of visitor area resort beaches, including maintenance of any improvements placed on the visitor area resort beach or in the nearshore waters, as determined by the department, including debt service on any capital expenditures projects and the contracting for services for those purposes.

(e) For the purposes of this section, "visitor area resort beaches" means sandy resort beaches that provide public access, including but not limited to:

(1) Gray's Beach, located in Waikiki on the island of Oahu; and

(2) Kaanapali beach located on the island of Maui."

SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Revenues collected under this chapter shall be distributed as follows, with the excess revenues to be deposited into the general fund:

(1) 17.3 per cent of the revenues collected under this chapter shall be deposited into the convention center enterprise special fund established under section 201B-8; provided that beginning January 1, 2002, if the amount of the revenue collected under this paragraph exceeds $33,000,000 in any calendar year, revenues collected in excess of $33,000,000 shall be deposited into the general fund;

(2) 34.2 per cent of the revenues collected under this chapter shall be deposited into the tourism special fund established under section 201B-11 for tourism promotion and visitor industry research; provided that [~~beginning~~]:

(A) Beginning on July 1, 2002, of the first $1,000,000 in revenues deposited:

[~~(A)~~] (i) Ninety per cent shall be deposited into the state parks special fund established in section 184-3.4; and

[~~(B)~~] (ii) Ten per cent shall be deposited into the special land and development fund established in section 171-19 for the Hawaii statewide trail and access program;

[~~provided that of the 34.2 per cent,~~]

(B) 0.5 per cent shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; and

(C) For the period beginning on July 1, 2008, and ending on June 30, 2010, a maximum of $2,000,000 may be transferred by the authority to the resort beach restoration fund, established by section 171-156(c);

provided further that of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds shall be deposited into the tourism emergency trust fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency trust fund; and

(3) 44.8 per cent of the revenues collected under this chapter shall be transferred as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent.

All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $1,000,000 for fiscal year 2008-2009 to be deposited into the resort beach restoration fund established under section 171-156(c), Hawaii Revised Statutes.

SECTION 4. The Hawaii tourism authority may transfer $1,000,000 from the tourism special fund for fiscal year 2008-2009 to the resort beach restoration fund established under section 171-156(c), Hawaii Revised Statutes.

SECTION 5. There is appropriated out of the resort beach restoration fund the sum of $2,000,000 for fiscal year 2008-2009 for the costs of visitor area resort beach restoration projects in the state, including but not limited to:

(1) Gray's Beach, located in Waikiki on the island of Oahu; and

(2) Kaanapali beach located on the island of Maui;

as provided for in subsections 171-156(c) and (d), Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2025.

HOUSE OF REPRESENTATIVES	H.B. NO.	2323
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII