HB1171

SECTION 1. The legislature finds that in a society aspiring to live by the rule of law, where a legislature creates laws and they are equally applied to all citizens, there must be an enforcement mechanism to ensure citizens respect and abide by these rules. Police and law enforcement officers are recognized as the individuals who perform this most critical public service.

The legislature also finds there is a national shortage of qualified candidates to fill policing and law enforcement positions. The impacts of this nationwide shortage are being experienced by the Honolulu Police Department. As of January 2, 2020, the department was shorthanded by 318 officers. The problem is attributed to a lack of qualified applicants and the fact that departments across the nation are competing for many of the same recruits.

The legislature further finds there is an urgent need to fill policing and law enforcement positions by offering competitive pay and benefits and other monetary and non-monetary benefits to attract new candidates and retain those already serving.

The purpose of this Act is to impose a visitor surcharge on passengers arriving and leaving the state. The surcharge shall be placed into a special fund to be used to recruit and retain police officers. With 9,888,845 visitors coming to the state in 2018, these funds will significantly improve police recruitment and retention. The surcharge will be added to passenger tickets on all overseas aircraft arriving and departing the state excluding inter-island passenger tickets.

SECTION 2. Chapter 52D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated to read as follows:

"Section 52D- VISITOR SECURITY SURCHARGE ON PASSENGER TICKETS.

§52D--A Definitions. As used in this part:

"Aircraft" means any contrivance now known or hereafter invented, used or designed for navigation of, or flight in, the air.

"Passenger" means any person who arrivers or departs from a public airport aboard an aircraft except for persons comprising the flight crew of the aircraft.

"Inter-island" means from one island port to another.

§52D--B Visitor Security Surcharge passenger tickets; establishment; purpose.

(a) There is established a Visitor Security Surcharge on passenger tickets, for all overseas arrivals and departures entering and departing the state excluding inter-island travel and Hawaii Residents. The purpose of the Visitor Security Surcharge is to increase funding for recruitment and retainment of county police officers. Revenue generated by the Visitor Security Surcharge shall be used to:

(1) Recruit and retain police officers.

(b) Revenue generated by the education surcharge shall be placed in the Blue Lives Matter special fund and shall be in addition to all other funds appropriated to the police commission.

§52D--C Applicability. (a) A Visitor Security Surcharge is levied and shall be assessed and collected by the department of taxation on all overseas passenger tickets arriving and departing the state by aircraft excluding inter-island passenger tickets.

As provided in this part with respect to the surcharges, the Police Commission shall have all the rights and powers provided under this part.

§52D--D Visitor Security Surcharge on passenger tickets; levy; assessment. (a) There is levied and shall be assessed and collected a surcharge on all overseas passenger tickets on flights arriving and departing the state.

(b) The surcharge shall be $5 on each aircraft passenger ticket arriving and departing the state.

(c) Fees collected by the department under this section shall be deposited into the Blue Lives Matter special fund established by section §52D-F.

§52D--E Visitor Security Surcharge on passenger tickets; disposition of proceeds. (a) The Visitor Security Surcharge on overseas passenger tickets shall be collected by the department of taxation. All funds collected by the department of taxation pursuant to the establishment of the Visitor Security Surcharge shall be deposited into the Blue Lives Matter special fund established in section 52D-F.

§52D--F Blue Lives Matter special fund. (a) There is established within the state treasury a special fund to be known as the Blue Lives Matter special fund to be administered by the Police Commission and into which shall be deposited:

(1) The proceeds of the Visitor Security Surcharge on overseas passenger tickets as established under section 52D-D; and

(2) All other funds received by the department and legally available for the purposes of the Blue Lives Matter special fund;

(b) The Blue Lives Matter special fund shall not be subject to sections 36-27, 36-30, and 37-53. Expenditures from the special fund shall be subject to sections 37-31, and 37-33 through 37-40.

(c) Funds in the Blue Lives matter special fund shall be allocated by the legislature through appropriations out of the special fund, in consultation with the police commission and the exclusive representatives of any appropriate bargaining units required, for the purpose of:

(1) Recruiting and retaining police officers;

(d) All amounts in the Blue Lives Matter special fund shall be exempt from all taxes and surcharges imposed by the state or the counties.

(e) No later than twenty days prior to the convening of each regular session, the commission shall provide a report containing an accounting of the receipts and expenditures from the Blue Lives Matter special fund."

SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"§36-27 Transfers from special funds for central service expenses. (a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Funds of the employees' retirement system created by section 88-109;

(9) Hawaii hurricane relief fund established under chapter 431P;

(10) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(11) Tourism special fund established under section 201B-11;

(12) Universal service fund established under section 269-42;

(13) Emergency and budget reserve fund under section 328L-3;

(14) Public schools special fees and charges fund under section 302A-1130;

(15) Sport fish special fund under section 187A-9.5;

[[](16)[]] Neurotrauma special fund under section 321H-4;

[[](17)[]] Glass advance disposal fee established by section 342G-82;

[[](18)[]] Center for nursing special fund under section 304A-2163;

[[](19)[]] Passenger facility charge special fund established by section 261-5.5;

[[](20)[]] Solicitation of funds for charitable purposes special fund established by section 467B-15;

[[](21)[]] Land conservation fund established by section 173A-5;

[[](22)[]] Court interpreting services revolving fund under section 607-1.5;

[[](23)[]] Trauma system special fund under section 321-22.5;

[[](24)[]] Hawaii cancer research special fund;

[[](25)[]] Community health centers special fund;

[[](26)[]] Emergency medical services special fund;

[[](27)[]] Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[](28)[]] Shared services technology special fund under section 27-43;

[[](29)[]] Automated victim information and notification system special fund established under section 353-136;

[[](30)[]] Deposit beverage container deposit special fund under section 342G-104;

[[](31)[]] Hospital sustainability program special fund under [[]section 346G-4[]];

[[](32)[]] Nursing facility sustainability program special fund under [[]section 346F-4[]];

[[](33)[]] Hawaii 3R's school improvement fund under section 302A-1502.4;

[[](34)[]] After-school plus program revolving fund under section 302A-1149.5; [~~and~~]

[[](35)[]] Civil monetary penalty special fund under section 321-30.2[,]; and

(36) Blue Lives Matter special fund under section 52D--F,

Shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"§36-30 Special fund reimbursements for departmental administrative expenses. (a) Each special fund, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Special funds established by section 206E-6;

(6) Aloha Tower fund created by section 206J-17;

(7) Funds of the employees' retirement system created by section 88-109;

(8) Hawaii hurricane relief fund established under chapter 431P;

(9) Convention center enterprise special fund established under section 201B-8;

(10) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(11) Tourism special fund established under section 201B-11;

(12) Universal service fund established under section 269-42;

(13) Emergency and budget reserve fund under section 328L-3;

(14) Public schools special fees and charges fund under section 302A-1130;

(15) Sport fish special fund under section 187A-9.5;

[[](16)[]] Neurotrauma special fund under section 321H-4;

[[](17)[]] Center for nursing special fund under section 304A-2163;

[[](18)[]] Passenger facility charge special fund established by section 261-5.5;

[[](19)[]] Court interpreting services revolving fund under section 607-1.5;

[[](20)[]] Trauma system special fund under section 321-22.5;

[[](21)[]] Hawaii cancer research special fund;

[[](22)[]] Community health centers special fund;

[[](23)[]] Emergency medical services special fund;

[[](24)[]] Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[](25)[]] Shared services technology special fund under section 27-43;

[[](26)[]] Nursing facility sustainability program special fund established pursuant to [[]section 346F-4[]];

[[](27)[]] Automated victim information and notification system special fund established under section 353-136;

[[](28)[]] Hospital sustainability program special fund under [[]section 346G-4[]]; [~~and~~]

[[](29)[]] Civil monetary penalty special fund under section 321-30.2[,];and

(30) Blue Lives Matter special fund under section 52D--F,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1171
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII