REPORT TITLE:
Cruise ships


DESCRIPTION:
Transfers certain PSC taxes to the harbor special fund for the
improvement of cruise ship facilities. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   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 has experienced large growth rates 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.  The State's passenger
 
 5 terminal infrastructure and facilities need improvement to
 
 6 accommodate the anticipated increase in cruise ship passengers in
 
 7 Hawaii.
 
 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 tax
 
14 revenue stream of vessels placed in service after December 1,
 
15 2000, over a nine-year period to finance the necessary passenger
 
16 cruise facilities around the State as identified in the Leo A.
 
17 Daly Statewide Passenger Cruise Facility Study.  Those public
 
18 service company tax revenues identified shall be transferred to
 
19 the department of transportation's harbor fund for this purpose.
 
20      SECTION 2.  Section 239-10, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "239-10  Disposition of revenues.  All taxes collected
 
 3 under this chapter shall be state realizations[.]; provided that
 
 4 tax revenues from contract carriers by water engaged primarily in
 
 5 the business of transporting persons between harbors or wharves
 
 6 of the various counties for interisland cruises within the State
 
 7 shall be divided as follows:
 
 8      (1)  Tax revenues from the gross income of contract carriers
 
 9           received from passenger ticket revenue from vessels
 
10           placed in service in Hawaii before December 2, 2000,
 
11           shall be deposited into the general fund;
 
12      (2)  Tax revenues from the gross income of contract carriers
 
13           received from passenger ticket revenue from vessels
 
14           placed in service in Hawaii after December 1, 2000,
 
15           shall be deposited into the general fund except those
 
16           deposited into the harbor special fund established
 
17           under section 266-19 as follows:
 
18           (A)  For calendar years 2000 to 2005, one hundred per
 
19                cent;
 
20           (B)  For calendar year 2006, eighty per cent;
 
21           (C)  For calendar year 2007, sixty per cent;
 
22           (D)  For calendar year 2008, forty per cent;
 
23           (E)  For calendar year 2009, twenty per cent; and
 

 
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 1           (F)  For calendar years 2010 and thereafter, zero.
 
 2 The director of taxation may require such forms and information
 
 3 as may be necessary to administer this section."
 
 4      SECTION 3.  Section 266-19, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "266-19  Creation of harbor special fund; disposition of
 
 7 harbor special fund.(a)  There is created in the treasury of
 
 8 the State the harbor special fund.  All moneys received by the
 
 9 department of transportation from the rates and fees pursuant to
 
10 section 266-17(a)(1) shall be paid into the harbor special fund.
 
11 The harbor special fund and the second separate harbor special
 
12 fund heretofore created shall be consolidated into the harbor
 
13 special fund at such time as there are no longer any revenue
 
14 bonds payable from the second separate harbor special fund.  The
 
15 harbor reserve fund heretofore created is abolished.
 
16      All moneys derived pursuant to this chapter from harbor
 
17 properties of the statewide system of harbors (excluding
 
18 properties principally used for recreation or the landing of
 
19 fish, except properties located at Kewalo Basin, ewa of Ala Moana
 
20 Park, Honolulu) shall be paid into the harbor special fund and
 
21 each fiscal year shall be appropriated, applied, or expended by
 
22 the department of transportation for the statewide system of
 
23 harbors for any purpose within the jurisdiction, powers, duties,
 

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

 
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 1 deposit in, and budgeted to be expended from, the harbor special
 
 2 fund during such period, amounts on deposit in the harbor special
 
 3 fund which are encumbered or otherwise obligated, budgeted
 
 4 amounts payable from the harbor special fund during such period,
 
 5 and revenues anticipated to be received by and expenditures to be
 
 6 made from the harbor special fund during such period based on
 
 7 existing agreements and other information for the ensuing twelve
 
 8 months, and such other factors as the director of transportation
 
 9 shall deem appropriate.
 
10      (c)  All moneys received under section 239-10 by the harbor
 
11 special fund shall be used exclusively by the department of
 
12 transportation to finance the necessary passenger cruise
 
13 facilities around the State as identified in the Leo A. Daly
 
14 Statewide Passenger Cruise Facility Study.  Moneys deposited in
 
15 the harbor special fund from other sources may not be used for
 
16 this purpose.
 
17     [(c)] (d)  All expenditures by the department shall be made
 
18 on vouchers duly approved by the director of transportation or
 
19 such other officer as may be designated by the director of
 
20 transportation."
 
21      SECTION 4.  Statutory material to be repealed is bracketed.
 
22 New statutory material is underscored.
 
23      SECTION 5.  This Act shall take effect on July 1, 2000.