HB1926.DOC

SECTION 1. The legislature finds that the department of business, economic development, and tourism provides services and programs that promote economic development. Thus, the legislature finds that the continued operation of the department is imperative for the recovery of the economy of the State.

The legislature also finds that fees for business- and commerce-related permits and authorizations have a nexus to the business climate and economic performance of the State. The legislature believes, in general, that the success of the department of business, economic development, and tourism in promoting the economy logically should result in the increase of the business activities of most of the fee payers. Consequently, the legislature finds that imposing a surcharge upon the fees to fund the department is appropriate.

The purpose of this Act is to:

(1) Establish a new special fund for the operation of the department of business, economic development, and tourism;

(2) Impose a surcharge on certain business- and commerce-related fees; and

(3) Require the surcharge revenues and $2,000,000 of the financial institutions tax to be deposited into the special fund.

SECTION 2. Chapter 92, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§92-A_ Surcharge upon fees for certain business- and commerce-related services by certain departments. (a) Beginning July 1, 2010 through June 30, 2015, there shall be added a surcharge of $20 upon every fee charged by:

(1) The department of commerce and consumer affairs for the:

(A) Application, issuance, renewal, or reissuance of a license, permit, or other authorization for a profession, business, or occupation;

(B) Examination or audit of a person engaged in a profession, business, or occupation;

(D) Application for or registration of a trade name, trademark, or service mark; or

(E) Tax on insurance premiums;

(2) The public utilities commission pertaining to the regulation of a public utility or filing of any document;

(3) The department of health pertaining to the regulation of a food establishment, tattoo shop, or tattoo artist;

(4) The department of labor and industrial relations pertaining to the regulation of a hoisting machine operator, blaster or pyrotechnics operator, safety and health professional, boiler installer or installation, and elevator mechanic or installation;

(5) The department of land and natural resources for the application, issuance, renewal, or reissuance of a commercial fishing license, aquaculture facility license, special marine product license, commercial boating ramp permit, or commercial film permit; and

(6) The department of taxation for the application, issuance, renewal, or reissuance of a license, permit, certificate, or other authorization required under the following taxes: general excise; transient accommodations; rental motor vehicle and tour vehicle; liquor; cigarette and tobacco; liquid fuel; public service company; and bank and financial corporation.

For the purpose of this section, "fee" means a monetary amount charged by a department for a specified service by the department, no matter the nomenclature used to describe the amount charged.

(b) Each department subject to subsection (a) shall impose and collect the appropriate surcharge and transmit the surcharge revenues to the director of finance for deposit into the department of business, economic development, and tourism operation special fund. The director of finance shall establish the deadlines by which the departments shall transmit the surcharge revenues to the director.

(1) Any service, no fee for which is charged;

(2) Any fine for a violation of a state law;

(3) Any fee for the dissemination or copying of a public record; or

(4) Any fee charged to a state, county, or federal agency."

SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§201-A Department of business, economic development, and tourism operation special fund. (a) There is established within the treasury of the State the department of business, economic development, and tourism operation special fund.

(b) Moneys required to be deposited into the special fund under sections 92-A and 241-7 shall be so deposited by the director of finance.

Any interest earned on moneys on deposit in the special fund shall be the realization of the general fund.

(c) Expenditures from the special fund shall be made to pay for the operation of the department of business, economic development, and tourism, including the salary and fringe benefits costs of department personnel.

(d) If, on June 30, 2015, there are unexpended and unencumbered moneys in the special fund, the director of finance shall transfer those moneys to the general fund on July 1, 2015."

SECTION 4. Section 241-7, Hawaii Revised Statutes, is amended to read as follows:

"§241-7 Disposition of funds. All taxes collected under this chapter shall be state realizations[;] and deposited into the general fund; provided that, by [~~June 30~~] January 1 or as soon thereafter as possible of each fiscal year, the sum of $2,000,000 shall be deposited with the director of finance to the credit of the [~~compliance resolution~~] department of business, economic development, and tourism operation special fund as established pursuant to section [~~26-9(o).~~] 201-A."

SECTION 5. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in 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, 2010 and shall be repealed on June 30, 2015; provided that section 241-7, Hawaii Revised Statutes, shall be reenacted on July 1, 2015 in the form in which it read on the day before the effective date of this Act.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1926
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII