HB2537

SECTION 1. The legislature finds that the State of Hawai`i is home to many structures that reflect our unique cultural heritage and are of great historical significance. The legislature also finds that preserving and perpetuating these structures that reflect the outstanding elements of Hawai`i's cultural, artistic, architectural, and historic heritage. The legislature further finds that there are economic benefits to heritage preservation as well.

Heritage tourism is one of the fastest growing niches in the tourism industry. Heritage preservation protects and enhances the State's attraction to tourists, and increases the tax base, enhances property values, and generates additional sales of goods and services, creates jobs, and otherwise benefits the overall economy.

The legislature further finds that even in prosperous years, state funding for historic preservation has been lean. To address the lack of consistent state funding for this type of preservation, the Historic Hawai`i Foundation, in cooperation with the National Trust for Historic Preservation, will establish the Hawai`i Preservation Fund. Envisioned as an endowment vehicle, the fund will allow the Historic Hawai`i Foundation to compete for federal dollars. Funds would be used for preservation services in Hawai`i with an overwhelming majority of the funding going to direct grant awards to Hawai`i-based non-profits and government organizations dedicated to heritage preservation.

The purpose of this Act is to appropriate a small portion of the transient accommodations tax to the Hawai`i Preservation Fund endowment to begin funding the endowment.

SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is amended to read as follows:

"§237D-6.5 Remittances; distribution to counties. (a) All remittances of taxes imposed under this chapter shall be made by cash, bank drafts, cashier's check, money order, or certificate of deposit to the office of the taxation district to which the return was transmitted.

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

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

(B) 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, 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 1.0 per cent shall be transferred to the Hawai`i Preservation Fund, as administered by the National Trust for Historic Preservation in cooperation with the Historic Hawai`i Foundation; 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.

(c) On or before January or July 1 of each year or after the disposition of any tax appeal with respect to an assessment for periods after June 30, 1990, the state director of finance shall compute and pay the amount due as provided in subsection (b) to the director of finance of each county to become a general realization of the county expendable as such, except as otherwise provided by law."

SECTION 3. This Act shall take effect on July 1, 2008, and shall be repealed on July 1, 2010 and section 237D-6.5, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the approval of this Act.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2537
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII