Bill Text: HI SB2504 | 2018 | Regular Session | Amended
Bill Title: Relating To The Hawaii Tourism Authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-04-25 - Conference committee meeting scheduled for 04-26-18 11:30AM in conference room 423. [SB2504 Detail]
Download: Hawaii-2018-SB2504-Amended.html
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THE SENATE |
S.B. NO. |
2504 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO THE HAWAII TOURISM AUTHORITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Notwithstanding any agreement between the Hawaii tourism authority and the State of the indebtedness of the Hawaii tourism authority in connection with any general obligation bonds issued pursuant to Act 7, Special Session Laws of Hawaii 1993, that is outstanding as of the effective date of this Act, an amount of $192,450,289 or so much thereof as may be owed is hereby canceled. To the extent of the amount canceled, the Hawaii tourism authority is relieved of all liability to the State under any agreement, including for any interest due under any agreement and any other fees and charges payable in connection with any agreement, and the total amount of the agreement owed to the State pursuant to any law or agreement shall be considered to be reduced by that amount. The amount of the indebtedness canceled under this section may be treated as a public debt of the State.
PART II
SECTION 2. Chapter 201B, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:
"§201B-A Convention center repair and maintenance
special fund. (a) There is established in the state treasury
the convention center repair and maintenance special fund, into which shall be
deposited:
(1) A portion of
the revenues from any transient accommodations tax, as provided by section
237D-6.5;
(2) Appropriations
by the legislature to the convention center repair and maintenance special
fund; and
(3) Gifts, grants,
and other funds accepted by the authority.
(b) Moneys in the convention center repair and
maintenance special fund may be:
(1) Placed in
interest-bearing accounts; provided that the depository in which the money is
deposited furnishes security as provided in section 38-3; or
(2) Otherwise
invested by the authority until such time as the moneys may be needed; provided
that the authority shall limit its investments to those listed in section
36-21.
All interest accruing from the investment of
these moneys shall be credited to the convention center repair and maintenance
special fund.
(c) Moneys in the convention center repair and maintenance
special fund:
(1) Shall be used by the authority for repair
and maintenance of the convention center; and
(2) May be used by the authority for capital
improvements of the convention center.
(d) Expenditure of
the moneys in the convention center repair and maintenance special fund shall
require approval of the board.
(e) The Hawaii tourism authority shall submit to
the legislature no later than twenty
days prior to the convening of
each regular session a report on
the expenditure of moneys from the convention center repair and maintenance
special fund in the previous fiscal year, the balance of the moneys remaining
in the special fund, and the purpose for which those moneys are to be used.
§201B-B Convention center emergency special fund. (a) There is established outside the state treasury a convention center 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 convention center repair and maintenance special fund established pursuant to section 201B-A.
(b) Moneys in the convention center emergency
special fund shall be used exclusively to respond to emergencies related to the
convention center. Expenditure of the moneys
in the convention center emergency special fund shall require an emergency
declaration by the governor, authorizing expenditure of the funds, and approval
of the board.
(c) The Hawaii tourism authority shall submit to
the legislature no later than twenty
days prior to the convening of
each regular session a report on
the expenditure of moneys from the convention center emergency special fund in
the previous fiscal year, the balance of the moneys remaining in the special
fund, and the purpose for which those moneys are to be used.
(d) Use of the convention center emergency
special fund, consistent with subsection (b), shall be provided for in articles,
bylaws, resolutions, or other instruments executed by the board as
administrator for the special fund."
SECTION 3. Section 201B-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Moneys in the convention center enterprise
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) Expenses] 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)."
SECTION 4. 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) $82,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:
(A) 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] the
following fund [balance of $5,000,000] balances in the
tourism emergency special fund[;]:
(i) $
beginning July 1, 2018;
(ii) $
beginning July 1, 2019;
(iii) $
beginning July 1, 2020; and
(iv) $
beginning July 1, 2021;
(4) $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) $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[.];
(6) $
for fiscal years 2018-2019, 2019-2020, 2020-2021, and 2021-2022 shall be
allocated to the convention center repair and maintenance special fund
established under section 201B-A; and
(7) $
for fiscal years 2018-2019, 2019-2020, 2020-2021, and 2021-2022 shall be
allocated to the convention center emergency special fund established under
section 201B-B.
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 III
SECTION 5. In codifying the new sections added by
section 2 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 upon its approval.
Report Title:
Hawaii Tourism Authority; Debt Cancellation; Convention Center Repair and Maintenance Special Fund; Convention Center Emergency Special Fund
Description:
Cancels the debt owed to the State by the Hawaii Tourism Authority for Convention Center construction costs and related interest. Amends the Transient Accommodations Tax (TAT) revenue allocation to the Convention Center Enterprise Special Fund. Establishes the Convention Center Repair and Maintenance Special Fund and the Convention Center Emergency Fund and allocates a portion of the TAT revenues to those funds. Amends the minimum balance of the Tourism Emergency Special Fund. (SB2504 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
