HOUSE OF REPRESENTATIVES	H.B. NO.	465
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII

A BILL FOR AN ACT

relating to the boating special fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to repeal the boating special fund.

     SECTION 2.  Section 200-2.5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  All revenues due to the State derived from leases of state boating facilities shall be deposited in the [boating special] general fund."

     SECTION 3.  Section 200-3, Hawaii Revised Statutes, is amended to read as follows:

     "§200-3  Ocean recreation and coastal areas programs.  The board shall assume the following functions of the department of transportation:

     (1)  Managing and administering the ocean-based recreation and coastal areas programs of the State;

     (2)  Planning, developing, operating, administering, and maintaining small boat harbors, launching ramps, and other boating facilities and associated aids to navigation throughout the State;

     (3)  Developing and administering an ocean recreation management plan;

     (4)  Administering and operating a vessel registration system for the State;

     (5)  Regulating the commercial use of state waters and marine resources, including operations originating from private marinas;

     (6)  Regulating boat regattas and other ocean water events;

     (7)  Administering a marine casualty and investigation program;

     (8)  Assisting in abating air, water, and noise pollution;

     (9)  Conducting public education in boating safety;

   [(10) Administering the boating special fund;

(11)] (10)  Assisting in controlling shoreline erosion;

   [(12)] (11)  Repairing seawalls and other existing coastal protective structures under the jurisdiction of the State; and

   [(13)] (12)  Removing nonnatural obstructions and public safety hazards from the shoreline, navigable streams, harbors, channels, and coastal areas of the State."

     SECTION 4.  Section 200-6, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The permittee shall pay fees to the department for the offshore mooring permit issued by the department.  The fees shall be based on, but not limited to, the use of the vessel, its effect on the waters and aquatic resources of the State, and the administrative expenses incurred by the department and other state agencies in administering offshore mooring.  All revenues collected under this section shall be deposited in the [boating special] general fund."

     SECTION 5.  Section 200-8, Hawaii Revised Statutes, is amended to read as follows:

     "§200-8  Boating program; payment of costs.  The cost of administering a comprehensive statewide boating program, including [but not limited to] the cost of:

     (1)  Operating, maintaining, and managing all boating facilities under the control of the department;

     (2)  Improving boating safety;

     (3)  Operating a vessel registration and boating casualty investigation and reporting system;

     (4)  Other boating program activities; and

     (5)  Planning, developing, managing, operating, or maintaining of all lands and improvements under the control and management of the board, including but not limited to permanent or temporary staff positions who may be appointed without regard to chapter 76,

shall be paid from [the boating special fund; provided that any fees collected within small boat harbors shall be expended only for costs related to the operation, upkeep, maintenance, and improvement of the small boat harbors.] general revenues as the legislature may authorize.  The amortization (principal and interest) of the costs of capital improvements for boating facilities appropriated after July 1, 1975, including [but not limited to] berths, slips, ramps, related accommodations, general navigation channels, breakwaters, aids to navigation, and other harbor structures, [may] shall be paid from [the boating special fund or from] general revenues as the legislature may authorize in each situation.  [Revenues provided in this chapter for the boating special fund shall be at least sufficient to pay the special fund costs established in this section.]"

     SECTION 6.  Section 200-10, Hawaii Revised Statutes, is amended by amending subsection (h) to read as follows:

     "(h)  All revenues from the foregoing operations shall be deposited in the [boating special] general fund."

     SECTION 7.  Section 200-14.5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Any criminal action against a person for any violation of subtitle 8 of title 12 or any rule adopted thereunder shall not preclude the State from pursuing civil legal action to recover administrative fines, fees and costs, or damages against that person.  Any civil legal action to recover administrative fines, fees and costs, or damages for any violation of subtitle 8 of title 12 or any rule adopted thereunder shall not preclude the State from pursuing any appropriate criminal action against that person.  All fines, fees and costs, or damages recovered by the department under this section shall be deposited in the [boating special] general fund."

     SECTION 8.  Section 200-34, Hawaii Revised Statutes, is amended to read as follows:

     "§200-34  Disposition of revenues.  All fees and penalties collected pursuant to sections 200-10, 200-14, 200-14.5, 200-25, and 200-32, and all fees and penalties established by rules adopted pursuant to sections 200-4 and 200-24, shall be deposited in the [boating special] general fund."

     SECTION 9.  Section 200-47, Hawaii Revised Statutes, is amended to read as follows:

     "§200-47  Disposition of proceeds.  A state or county agency that sells a vessel pursuant to this part shall deposit that portion of the proceeds of the sale of the vessel that represents the mooring or other fees and charges due the agency, the expenses of the auction, and any other expense incurred by the agency in taking into custody and disposing of an abandoned vessel, derelict vessel, or vessel impounded under section 200-16, into the [boating special fund or other] state or county fund, as appropriate, from which the expenses incurred in connection with the vessel were paid.  The balance, if any, shall be deposited into the general fund [of the State].  The owner may recover any balance of the proceeds from the State only if the owner files a claim therefor with the department of budget and finance within one year after the execution of the bill of sale.  If no claim is made within the year allowed, the money shall become a state realization.  A lien holder shall receive priority in payment from the balance of the proceeds to the extent of the lien holder's lien on the vessel.  If the proceeds of the sale are insufficient to cover the mooring and other fees and charges, the expenses of the auction, and the other expenses incurred by the agency in taking into custody and disposing of the vessel, the agency may bring an action for the deficiency in [[]an[]] environmental court of appropriate jurisdiction against the registered or documented owner or any person who had an interest in the vessel when custody was taken by the agency."

     SECTION 10.  Section 200-47.5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The department may take legal action to collect any costs or expenses incurred by the department for any removal under this section.  All moneys collected shall be deposited in the [boating special] general fund."

     SECTION 11.  Section 248-8, Hawaii Revised Statutes, is amended to read as follows:

     "§248-8  Special funds in treasury of State.  There are created in the treasury of the State [three] two special funds to be known, respectively, as the state highway fund[,] and the airport revenue fund[, and the boating special fund].  All taxes collected under chapter 243 in each calendar year, except the "county of Hawaii fuel tax", "city and county of Honolulu fuel tax", "county of Maui fuel tax", and "county of Kauai fuel tax", shall be deposited in the state highway fund; provided that:

     (1)  All taxes collected under chapter 243 with respect to gasoline or other aviation fuel sold for use in or used for airplanes shall be set aside in the airport revenue fund; and

     (2)  All taxes collected under chapter 243 with respect to liquid fuel sold for use in or used for small boats shall be deposited in the [boating special] general fund.

     As used in this section, "small boats" means all vessels and other watercraft except those operated in overseas transportation beyond the State, and ocean-going tugs and dredges.  The chairperson of the board of land and natural resources, from July 1, 1992, and every three years thereafter, shall establish standards or formulas that will as equitably as possible establish the total taxes collected under chapter 243 in each fiscal year that are derived from the sale of liquid fuel for use in or used for small boats.  The amount so determined shall be deposited in the [boating special] general fund.

     An amount equal to 0.3 per cent of the highway fuel tax but not more than $250,000 collected under chapter 243 shall be allocated each fiscal year to the special land and development fund for purposes of the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department of land and natural resources established under section 198D-2."

     SECTION 12.  Section 36-29.5, Hawaii Revised Statutes, is repealed.

     ["[§36-29.5]  Transfer from boating special fund.  Notwithstanding any law to the contrary, including section 36-27, there shall be deducted from time to time by the director of finance for the purpose of defraying the prorated estimate of central service expenses of government in relation to the boating special fund, five per cent of all receipts and deposits in the boating special fund after subtracting therefrom any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon during the time period for which the deduction is to be made.  The deductions shall be transferred to the general fund of the State and shall become general realizations of the State.

For the purpose of this section, the term "any amounts pledged, charged, or encumbered for the payment of bonds or interest thereon" shall include:

(1) Amounts that are so pledged, charged, or encumbered; and

(2) Amounts required by law to be paid from the boating special fund into the general fund of the State to reimburse the general fund for bond requirements for general obligation bonds issued for boating facility purposes.

The chairperson of the board of land and natural resources shall cooperate with the director of finance in effecting the transfer."]

     SECTION 13.  On July 1, 2018, all unencumbered balances remaining in the boating special fund repealed by this Act shall lapse to the credit of the general fund.

     SECTION 14.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 15.  This Act shall take effect on July 1, 2018.

INTRODUCED BY:

_____________________________

Report Title:

Boating Special Fund; Repeal

Description:

Repeals the boating special fund.  Transfers unencumbered boating special fund moneys and future revenues to the general fund.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.