Bill Text: HI SB2224 | 2018 | Regular Session | Amended
Bill Title: Relating To Tourism.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2018-03-08 - Referred to TOU, FIN, referral sheet 35 [SB2224 Detail]
Download: Hawaii-2018-SB2224-Amended.html
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THE SENATE |
S.B. NO. |
2224 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 201B-8, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:
"§201B-8 Convention center [enterprise special
fund.] operations and maintenance special fund. (a)
There is established the convention center [enterprise special fund,]
operations and maintenance special fund, into which shall be deposited:
[(1) A portion of the revenues from the
transient accommodations tax, as provided by section 237D-6.5;
(2)] (1)
All revenues or moneys derived from the operations of the convention center
to include all revenues from the food and beverage service, all revenues from
the parking facilities or from any concession, and all revenues from the sale
of souvenirs, logo items, or any other items offered for purchase at the
convention center;
[(3)] (2)
Private contributions, interest, compensation, gross or net revenues,
proceeds, or other moneys derived from any source or for any purpose arising
from the use of the convention center facility; and
[(4)] (3)
Appropriations by the legislature, including any transfers from the
tourism special fund established under section 201B-11 for marketing the
facility pursuant to section 201B-7(a)(7).
(b) Moneys in the convention center [enterprise]
operations and maintenance special fund shall be used by the authority
for the payment of any and all of the following:
[(1) Debt owed to the department of budget and
finance relating to the convention center; and
(2)] (1)
Expenses arising from any and all use, operation, maintenance,
alteration, improvement, or any unforeseen or unplanned repairs of the
convention center, including without limitation the food and beverage service
and parking service provided at the convention center facility, the sale of
souvenirs, logo items, or other items, for any future major repair,
maintenance, and improvement of the convention center facility as a commercial
enterprise or as a world class facility for conventions, entertainment, or
public events, and for marketing the facility pursuant to section 201B-7(a)(7)[.];
and
(2) Salaries for convention center personnel."
SECTION 2. Section 201B-11, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) Moneys in the tourism special fund shall be
used by the authority for the purposes of this chapter[,]; provided
that:
(1) [Not]
No more than [3.5 per cent of this amount] $2,800,000
shall be used for administrative expenses[, including $15,000 for a protocol
fund to be expended at the discretion of the president and chief executive
officer]; and
(2) [At least $1,000,000 shall be made
available to support efforts to manage, improve, and protect Hawaii's natural
environment and areas frequented by visitors.] No more than $49,200,000
shall be used for marketing expenses.
For the purposes of this subsection, "administrative expenses" means office equipment, salaries, and supplies."
SECTION 3. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:
(1) $1,500,000
shall be allocated to the Turtle Bay conservation easement special fund
beginning July 1, 2015, for the reimbursement to the state general fund of debt
service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the
bonds, the proceeds of which were used to acquire the conservation easement and
other real property interests in Turtle Bay, Oahu, for the protection,
preservation, and enhancement of natural resources important to the State,
until the bonds are fully amortized;
[(2) $26,500,000
shall be allocated to the convention center enterprise special fund established
under section 201B-8;
(3)] (2) [$82,000,000] $52,000,000
shall be allocated to the tourism special fund established under section
201B-11; provided that[:
(A) Beginning]
beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall
be expended from the tourism special fund for development and implementation of
initiatives to take advantage of expanded visa programs and increased travel
opportunities for international visitors to Hawaii;
[(B) Of
the $82,000,000 allocated:
(i) $1,000,000
shall be allocated for the operation of a Hawaiian center and the museum of
Hawaiian music and dance at the Hawaii convention center; and
(ii) 0.5
per cent of the $82,000,000 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) 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
special fund, established in section 201B-10, in a manner sufficient to
maintain a fund balance of $5,000,000 in the tourism emergency special fund;
(4)] (3) $103,000,000 shall be allocated 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;
provided that commencing with fiscal year 2018-2019, a sum that represents the
difference between a county public employer's annual required contribution for
the separate trust fund established under section 87A-42 and the amount of the
county public employer's contributions into that trust fund shall be retained
by the state director of finance and deposited to the credit of the county
public employer's annual required contribution into that trust fund in each
fiscal year, as provided in section 87A-42, if the respective county fails to
remit the total amount of the county's required annual contributions, as
required under section 87A-43; [and
(5)] (4) $3,000,000 shall be allocated to the
special land and development fund established under section 171-19; provided
that the allocation shall be expended [in accordance with the Hawaii tourism
authority strategic plan] for:
(A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
(B) Planning, construction, and repair of facilities; and
(C) Operation and
maintenance costs of public lands, including beaches, connected with enhancing the visitor experience[.];
(5) $ shall be allocated to the department of business, economic development, and tourism; provided that the funds allocated shall be expended for other economic development initiatives and programs;
(6) $ shall be allocated to the department of education and University of Hawaii; provided that the funds allocated shall be expended for career technical education programs for the tourism industry;
(7) $ shall be allocated to University of Hawaii athletics; provided that the funds allocated shall be expended for student athlete travel;
(8) $
shall be allocated to the department of land and natural resources; provided
that the funds allocated shall be expended to address the impact of tourism on the
natural resources of the State;
(9) $ shall be allocated to the department of public safety; provided that the funds allocated shall be expended for ; and
(10) $
shall be allocated to the state foundation on culture and the arts; provided
that the funds allocated shall be expended for the perpetuation of the Hawaiian
culture.
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.
As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."
PART II
SECTION 4. Section 87A-42, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) In any fiscal year subsequent to the 2017-2018
fiscal year in which a county public employer's contributions into the fund are
less than the amount of the annual required contribution, the amount that
represents the excess of the annual required contribution over the county
public employer's contributions shall be deposited into the fund from a portion
of all transient accommodations tax revenues collected by the department of
taxation under section [237D-6.5(b)(4).] 237D‑6.5(b)(3). The director of finance shall deduct the
amount necessary to meet the county public employer's annual required
contribution from the revenues derived under section [237D‑6.5(b)(4)]
237D-6.5(b)(3) and transfer the amount to the board for deposit into the
appropriate account of the separate trust fund."
SECTION 5. Section 171-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is created in the department a special
fund to be designated as the "special land and development
fund". Subject to the Hawaiian
Homes Commission Act of 1920, as amended, and section 5(f) of the Admission Act
of 1959, all proceeds of sale of public lands, including interest on deferred
payments; all moneys collected under section 171-58 for mineral and water
rights; all rents from leases, licenses, and permits derived from public lands;
all moneys collected from lessees of public lands within industrial parks; all
fees, fines, and other administrative charges collected under this chapter and
chapter 183C; a portion of the highway fuel tax collected under chapter 243;
all moneys collected by the department for the commercial use of public trails
and trail accesses under the jurisdiction of the department; transient
accommodations tax revenues collected pursuant to section [237D-6.5(b)(5);]
237D-6.5(b)(4); and private contributions for the management,
maintenance, and development of trails and accesses shall be set apart in the
fund and shall be used only as authorized by the legislature for the following
purposes:
(1) To reimburse the general fund of the State for advances made that are required to be reimbursed from the proceeds derived from sales, leases, licenses, or permits of public lands;
(2) For the planning,
development, management, operations, or maintenance of all lands and
improvements under the control and management of the board pursuant to title
12, including but not limited to permanent or temporary staff positions who may
be appointed without regard to chapter 76; provided that transient
accommodations tax revenues allocated to the fund shall be expended as provided
in section [237D‑6.5(b)(5);] 237D-6.5(b)(4);
(3) To repurchase any land, including improvements, in the exercise by the board of any right of repurchase specifically reserved in any patent, deed, lease, or other documents or as provided by law;
(4) For the payment of all appraisal fees; provided that all fees reimbursed to the board shall be deposited in the fund;
(5) For the payment of publication notices as required under this chapter; provided that all or a portion of the expenditures may be charged to the purchaser or lessee of public lands or any interest therein under rules adopted by the board;
(6) For the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department;
(7) For the payment to private land developers who have contracted with the board for development of public lands under section 171-60;
(8) For the payment of debt service on revenue bonds issued by the department, and the establishment of debt service and other reserves deemed necessary by the board;
(9) To reimburse the general fund for debt service on general obligation bonds issued to finance departmental projects, where the bonds are designated to be reimbursed from the special land and development fund;
(10) For the protection, planning, management, and regulation of water resources under chapter 174C; and
(11) For other purposes of this chapter."
SECTION 6. Section 201B-2, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f)
The board shall appoint one person to serve as president and chief
executive officer, exempt from chapters 76 and 88 who shall oversee the
authority staff; provided that the compensation package, including salary,
shall not exceed fifteen per cent of the [3.5 per cent] $2,800,000
authorized for administrative expenses under section 201B-11(c); and provided
further that the compensation package shall not include private sector moneys
or other contributions. The board shall
set the president and chief executive officer's duties, responsibilities,
holidays, vacations, leaves, hours of work, and working conditions. It may grant other benefits as it deems
necessary."
SECTION 7. Section 201B-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established outside the state
treasury a tourism emergency special fund to be administered by the board, into
which shall be deposited the revenues prescribed by [section 237D‑6.5(b).]
. All investment earnings from moneys in the
special fund shall be credited to the tourism special fund established pursuant
to section 201B-11."
SECTION 8. Sections 36-27(a) and 36-30(a), Hawaii Revised Statutes, are amended by substituting the phrase "convention center operations and maintenance special fund", or a similar phrase, wherever the phrase "convention center enterprise special fund", or a similar phrase, appears, as the context requires.
PART III
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 2018.
Report Title:
Hawaii Tourism Authority; Convention Center Operations and Maintenance Special Fund; Transient Accommodations Tax
Description:
Renames the convention center enterprise special fund as the convention center operations and maintenance special fund and repeals the allocation of TAT revenues to that fund, and amends the allowable uses of that fund. Defines administrative expenses as used in section 201B-11(c), HRS, as office equipment, salaries, and supplies. Redistributes transient accommodations tax revenue from the Hawaii tourism authority to different state agencies for certain purposes. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
