REPORT TITLE:
Cruise ships


DESCRIPTION:
Transfers certain PSC taxes to the harbor special fund and
boating special fund for additions and improvements of passenger
cruise ship facilities.  (SB2303 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2303
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
RELATING TO HARBORS.



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

 1      SECTION 1.  The legislature finds that the cruise ship
 
 2 industry is experiencing tremendous growth and will contribute
 
 3 substantially to Hawaii's economy in the form of new jobs and an
 
 4 increase in tax revenues to the State.  However, to accommodate
 
 5 the anticipated increase in cruise ship passengers in Hawaii, the
 
 6 State's passenger terminal infrastructure and facilities need
 
 7 improvement.
 
 8      The legislature further finds that American Hawaii Cruises
 
 9 has been sailing the SS Independence on weekly cruises in Hawaii
 
10 for the past twenty years.  American Hawaii Cruises has three new
 
11 vessels scheduled to be placed in service in Hawaii over the next
 
12 four years if sufficient facilities are available.
 
13      The purpose of this Act is to allocate part of the public
 
14 service company tax revenue stream of passenger cruise vessels to
 
15 finance the improvements and additions to passenger cruise
 
16 facilities around the State as identified in the Leo A. Daly
 
17 Statewide Passenger Cruise Facility Study.  Those public service
 
18 company tax revenues identified shall be transferred to the
 
19 department of transportation's harbor special fund and the
 
20 department of land and natural resources' boating special fund
 
21 for this purpose.
 

 
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 1      SECTION 2.  Section 239-10, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "239-10  Disposition of revenues.  (a)  All taxes collected
 
 4 under this chapter shall be state realizations[.]; provided that
 
 5 tax revenues from contract carriers by water engaged primarily in
 
 6 the business of transporting persons between harbors or wharves
 
 7 of the various counties for interisland cruises within the State:
 
 8      (1)  Shall be deposited as follows:
 
 9           (A)  The first $3,000,000 of tax revenues from the
 
10                gross income of contract carriers received from
 
11                passenger ticket revenue from all vessels in
 
12                service in Hawaii shall be deposited into the
 
13                general fund;
 
14           (B)  Tax revenues from the gross income of contract
 
15                carriers received from passenger ticket revenue
 
16                from all vessels in service in Hawaii in any year
 
17                in excess of $3,000,000 shall be deposited into
 
18                the harbor special fund established under section
 
19                266-19 and the boating special fund established
 
20                under section 248-8 at a ratio of 89:11,
 
21                respectively, and moneys shall be expended from
 
22                these special funds for any of the following
 
23                purposes with respect to improvements and
 

 
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 1                additions to the passenger cruise facilities under
 
 2                the jurisdictions of the harbors division of the
 
 3                department of transportation and the department of
 
 4                land and natural resources, respectively, at the
 
 5                ports identified in the Leo A. Daly Statewide
 
 6                Passenger Cruise Facility Study:
 
 7                (i)  Paying the costs of the improvements and
 
 8                     additions;
 
 9               (ii)  Reimbursing the special funds for the amount
 
10                     of expenditures made for the improvements and
 
11                     additions;
 
12              (iii)  Paying the debt service on revenue bonds
 
13                     issued to finance the improvements and
 
14                     additions; or
 
15               (iv)  Reimbursing the general fund for debt service
 
16                     on general obligation bonds, the proceeds of
 
17                     which were used to finance the improvements
 
18                     and additions;
 
19      (2)  Shall be deposited for improvements and additions to
 
20           the passenger cruise facilities until:
 
21           (A)  In the case of the harbor special fund, the total
 
22                amount of deposits shall be equal to the lesser
 
23                of:
 

 
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 1                (i)  $86,330,000; or
 
 2               (ii)  The amount reported by the harbors division
 
 3                     of the department of transportation to the
 
 4                     legislature as the amount necessary to make
 
 5                     the required improvements and additions to
 
 6                     the passenger cruise facilities under its
 
 7                     jurisdiction at the ports identified in the
 
 8                     Leo A. Daly Statewide Passenger Cruise
 
 9                     Facility Study;
 
10                and
 
11           (B)  In the case of the boating special fund, the total
 
12                amount of deposits shall be equal to the lesser
 
13                of:
 
14                (i)  $10,670,000; or
 
15               (ii)  The amount reported by the department of land
 
16                     and natural resources to the legislature as
 
17                     the amount necessary to make the required
 
18                     improvements and additions to the passenger
 
19                     cruise facilities under its jurisdiction at
 
20                     the ports identified in the Leo A. Daly
 
21                     Statewide Passenger Cruise Facility Study;
 
22           provided that if the maximum amount is reached for
 
23           deposits to either the harbor special fund or the
 

 
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 1           boating special fund, the full amount of the tax
 
 2           revenue from the gross income of contract carriers
 
 3           received from passenger ticket revenue from all vessels
 
 4           in service in Hawaii in any year in excess of
 
 5           $3,000,000 shall be deposited into the other special
 
 6           fund until the maximum amount specified in this
 
 7           paragraph for that special fund has been achieved; and
 
 8      (3)  Amounts in excess of the maximum amount for deposits to
 
 9           both the harbor special fund and the boating special
 
10           fund pursuant to paragraph (2) shall be deposited into
 
11           the general fund.
 
12      (b)  The harbors division of the department of
 
13 transportation and the department of land and natural resources
 
14 shall report annually to the legislature on the amounts necessary
 
15 to make the required improvements and additions to the passenger
 
16 cruise facilities under their jurisdictions at the ports
 
17 identified in the Leo A. Daly Statewide Passenger Cruise Facility
 
18 Study.  The reports shall be submitted to the legislature no
 
19 later than twenty days before the convening of each regular
 
20 session."
 
21      SECTION 3.  Section 248-8, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "248-8  Special funds in treasury of State.  (a)  There are
 
 2 created in the treasury of the State three special funds to be
 
 3 known[, respectively,] as the state highway fund, the airport
 
 4 revenue fund, and the boating special fund.  All taxes collected
 
 5 under chapter 243 in each calendar year, except the "county of
 
 6 Hawaii fuel tax", "city and county of Honolulu fuel tax", "county
 
 7 of Maui fuel tax", and "county of Kauai fuel tax", shall be
 
 8 deposited in the state highway fund; provided that:
 
 9      (1)  All taxes collected under chapter 243 with respect to
 
10           gasoline or other aviation fuel sold for use in or used
 
11           for airplanes shall be set aside in the airport revenue
 
12           fund; and
 
13      (2)  All taxes collected under chapter 243 with respect to
 
14           liquid fuel sold for use in or used for small boats
 
15           shall be deposited in the boating special fund.
 
16      [As used in this section, "small boats" means all vessels
 
17 and other watercraft except those operated in overseas
 
18 transportation beyond the State, and ocean-going tugs and
 
19 dredges.  The chairperson of the board of land and natural
 
20 resources, from July 1, 1992, and every three years thereafter,
 
21 shall establish standards or formulas that will as equitably as
 
22 possible establish the total taxes collected under chapter 243 in
 
23 each fiscal year that are derived from the sale of liquid fuel
 

 
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 1 for use in or used for small boats.  The amount so determined
 
 2 shall be deposited in the boating special fund.]
 
 3      (b)  An amount equal to 0.3 per cent of the highway fuel
 
 4 tax, but not more than $250,000 collected under chapter 243,
 
 5 shall be allocated each fiscal year to the special land and
 
 6 development fund for purposes of the management, maintenance, and
 
 7 development of trails and trail accesses under the jurisdiction
 
 8 of the department of land and natural resources established under
 
 9 section 198D-2.
 
10      (c)  From July 1, 1992, and every three years thereafter,
 
11 the chairperson of the board of land and natural resources shall
 
12 establish standards or formulas that will, as equitably as
 
13 possible, establish the total taxes collected under chapter 243
 
14 in each fiscal year that are derived from the sale of liquid fuel
 
15 for use in or used for small boats.  The amount so determined
 
16 shall be deposited in the boating special fund.
 
17      (d)  All moneys received under section 239-10 shall be used
 
18 exclusively by the department of land and natural resources to
 
19 finance the necessary improvements and additions to passenger
 
20 cruise facilities around the State at the ports identified in the
 
21 Leo A. Daly Statewide Passenger Cruise Facility Study.  Funds
 
22 deposited in the boating special fund from other sources may not
 
23 be used for this purpose.
 

 
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 1      (e)  As used in this section, "small boats" mean all vessels
 
 2 and other watercraft except those operated in overseas
 
 3 transportation beyond the State, and ocean-going tugs and
 
 4 dredges."
 
 5      SECTION 4.  Section 266-19, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "266-19  Creation of harbor special fund; disposition of
 
 8 harbor special fund.(a)  There is created in the treasury of
 
 9 the State the harbor special fund.  All moneys received by the
 
10 department of transportation from the rates and fees pursuant to
 
11 section 266-17(a)(1) shall be paid into the harbor special fund.
 
12 The harbor special fund and the second separate harbor special
 
13 fund heretofore created shall be consolidated into the harbor
 
14 special fund at such time as there are no longer any revenue
 
15 bonds payable from the second separate harbor special fund.  The
 
16 harbor reserve fund heretofore created is abolished.
 
17      All moneys derived pursuant to this chapter from harbor
 
18 properties of the statewide system of harbors (excluding
 
19 properties principally used for recreation or the landing of
 
20 fish, except properties located at Kewalo Basin, ewa of Ala Moana
 
21 Park, Honolulu) shall be paid into the harbor special fund and
 
22 each fiscal year shall be appropriated, applied, or expended by
 
23 the department of transportation for the statewide system of
 

 
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 1 harbors for any purpose within the jurisdiction, powers, duties,
 
 2 and functions of the department of transportation related to the
 
 3 statewide system of harbors (excluding properties principally
 
 4 used for recreation or the landing of fish, except the properties
 
 5 located at Kewalo Basin, ewa of Ala Moana Park, Honolulu),
 
 6 including, without limitation, the costs of operation,
 
 7 maintenance and repair of the statewide system of harbors and
 
 8 reserves therefor, and acquisitions (including real property and
 
 9 interests therein), constructions, additions, expansions,
 
10 improvements, renewals, replacements, reconstruction,
 
11 engineering, investigation, and planning, for the statewide
 
12 system of harbors, all or any of which in the judgment of the
 
13 department of transportation are necessary to the performance of
 
14 its duties or functions.
 
15      (b)  At any time the director of transportation may transfer
 
16 from the harbor special fund created by [paragraph] subsection
 
17 (a) [of this section], all or any portion of available moneys on
 
18 deposit in the harbor special fund, except moneys under
 
19 subsection (c), determined by the director of transportation to
 
20 be in excess of one hundred fifty per cent of the requirements
 
21 for the ensuing twelve months for the harbor special fund as
 
22 permitted by and in accordance with section 37-53.  For purposes
 
23 of such determination, the director of transportation shall take
 

 
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 1 into consideration the amount of federal funds and bond funds on
 
 2 deposit in, and budgeted to be expended from, the harbor special
 
 3 fund during such period, amounts on deposit in the harbor special
 
 4 fund which are encumbered or otherwise obligated, budgeted
 
 5 amounts payable from the harbor special fund during such period,
 
 6 and revenues anticipated to be received by and expenditures to be
 
 7 made from the harbor special fund during such period based on
 
 8 existing agreements and other information for the ensuing twelve
 
 9 months, and such other factors as the director of transportation
 
10 shall deem appropriate.
 
11      (c)  All moneys received under section 239-10, other
 
12 sections under which the passenger head tax is assessed, and any
 
13 other sections under which passenger vessels contribute funds to
 
14 the harbor special fund, shall be used exclusively by the
 
15 department of transportation to finance the necessary
 
16 improvements and additions to passenger cruise facilities around
 
17 the State as identified in the Leo A. Daly Statewide Passenger
 
18 Cruise Facility Study.  Funds deposited in the harbor special
 
19 fund from other sources may not be used for this purpose.
 
20     [(c)](d)  All expenditures by the department shall be made on
 
21 vouchers duly approved by the director of transportation or such
 
22 other officer as may be designated by the director of
 
23 transportation."
 

 
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 1      SECTION 5.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 6.  This Act shall take effect on July 1, 2020.