REPORT TITLE:
Cruise ships


DESCRIPTION:
Transfers certain PSC taxes to the harbor special fund for the
improvement of cruise ship facilities. (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 2
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 follows:
 
17      Berthing Ports - harbors providing a pier or wharf with
 
18      designated spaces for vessel assignment, as follows:
 
19           Oahu:     Honolulu Harbor;
 
20           Maui:     Kahului Harbor;
 

 
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 1           Kauai:    Nawiliwili Harbor, Port Allen;
 
 2           Hawaii:   Hilo Harbor, Kawaihae Harbor; and
 
 3           Molokai:  Kaunakakai Harbor.
 
 4      Anchor Ports - typically small boat harbors (under the
 
 5      jurisdiction of the department of land and natural
 
 6      resources) with a specific location for ships to moor, as
 
 7      follows:
 
 8           Maui:     Lahaina;
 
 9           Kauai:    Kikiaola, Hanalei;
 
10           Hawaii:   Wailoa, Kailua-Kona; and
 
11           Lanai:    Manele.
 
12 Those public service company tax revenues identified shall be
 
13 transferred to the department of transportation's harbor fund for
 
14 this purpose.
 
15      SECTION 2.  Section 239-10, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "239-10  Disposition of revenues.  All taxes collected
 
18 under this chapter shall be state realizations[.]; provided that
 
19 tax revenues from contract carriers by water engaged primarily in
 
20 the business of transporting persons between harbors or wharves
 
21 of the various counties for interisland cruises within the State
 
22 shall be divided as follows:
 
23      (1)  Tax revenues from the gross income of contract carriers
 

 
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 1           received from passenger ticket revenue from vessels
 
 2           placed in service in Hawaii before December 2, 2000,
 
 3           shall be deposited into the general fund;
 
 4      (2)  Tax revenues from the gross income of contract carriers
 
 5           received from passenger ticket revenue from vessels
 
 6           placed in service in Hawaii after December 1, 2000,
 
 7           shall be deposited into the general fund except those
 
 8           deposited into the harbor special fund established
 
 9           under section 266-19 as follows:
 
10           (A)  For calendar years 2000 to 2005, one hundred per
 
11                cent;
 
12           (B)  For calendar year 2006, eighty per cent;
 
13           (C)  For calendar year 2007, sixty per cent;
 
14           (D)  For calendar year 2008, forty per cent;
 
15           (E)  For calendar year 2009, twenty per cent; and
 
16           (F)  For calendar years 2010 and thereafter, zero.
 
17 The director of taxation may require such forms and information
 
18 as may be necessary to administer this section."
 
19      SECTION 3.  Section 266-19, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "266-19  Creation of harbor special fund; disposition of
 
22 harbor special fund.(a)  There is created in the treasury of
 
23 the State the harbor special fund.  All moneys received by the
 

 
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 1 department of transportation from the rates and fees pursuant to
 
 2 section 266-17(a)(1) shall be paid into the harbor special fund.
 
 3 The harbor special fund and the second separate harbor special
 
 4 fund heretofore created shall be consolidated into the harbor
 
 5 special fund at such time as there are no longer any revenue
 
 6 bonds payable from the second separate harbor special fund.  The
 
 7 harbor reserve fund heretofore created is abolished.
 
 8      All moneys derived pursuant to this chapter from harbor
 
 9 properties of the statewide system of harbors (excluding
 
10 properties principally used for recreation or the landing of
 
11 fish, except properties located at Kewalo Basin, ewa of Ala Moana
 
12 Park, Honolulu) shall be paid into the harbor special fund and
 
13 each fiscal year shall be appropriated, applied, or expended by
 
14 the department of transportation for the statewide system of
 
15 harbors for any purpose within the jurisdiction, powers, duties,
 
16 and functions of the department of transportation related to the
 
17 statewide system of harbors (excluding properties principally
 
18 used for recreation or the landing of fish, except the properties
 
19 located at Kewalo Basin, ewa of Ala Moana Park, Honolulu),
 
20 including, without limitation, the costs of operation,
 
21 maintenance, and repair of the statewide system of harbors and
 
22 reserves therefor, and acquisitions (including real property and
 
23 interests therein), constructions, additions, expansions,
 

 
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 1 improvements, renewals, replacements, reconstruction,
 
 2 engineering, investigation, and planning, for the statewide
 
 3 system of harbors, all or any of which in the judgment of the
 
 4 department of transportation are necessary to the performance of
 
 5 its duties or functions.
 
 6      (b)  At any time the director of transportation may transfer
 
 7 from the harbor special fund created by [paragraph] subsection
 
 8 (a) [of this section], all or any portion of available moneys on
 
 9 deposit in the harbor special fund, except moneys under
 
10 subsection (c), determined by the director of transportation to
 
11 be in excess of one hundred fifty per cent of the requirements
 
12 for the ensuing twelve months for the harbor special fund as
 
13 permitted by and in accordance with section 37-53.  For purposes
 
14 of such determination, the director of transportation shall take
 
15 into consideration the amount of federal funds and bond funds on
 
16 deposit in, and budgeted to be expended from, the harbor special
 
17 fund during such period, amounts on deposit in the harbor special
 
18 fund which are encumbered or otherwise obligated, budgeted
 
19 amounts payable from the harbor special fund during such period,
 
20 and revenues anticipated to be received by and expenditures to be
 
21 made from the harbor special fund during such period based on
 
22 existing agreements and other information for the ensuing twelve
 
23 months, and such other factors as the director of transportation
 

 
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 1 shall deem appropriate.
 
 2      (c)  All moneys received under section 239-10 by the harbor
 
 3 special fund shall be used exclusively by the department of
 
 4 transportation to finance the necessary passenger cruise
 
 5 facilities around the State as follows:
 
 6      (1)  Berthing Ports - harbors providing a pier or wharf with
 
 7           designated spaces for vessel assignment, as follows:
 
 8           (A)  Oahu:     Honolulu Harbor;
 
 9           (B)  Maui:     Kahului Harbor;
 
10           (C)  Kauai:    Nawiliwili Harbor, Port Allen;
 
11           (D)  Hawaii:   Hilo Harbor, Kawaihae Harbor; and
 
12           (E)  Molokai:  Kaunakakai Harbor.
 
13      (2)  Anchor Ports - typically small boat harbors (under the
 
14           jurisdiction of the department of land and natural
 
15           resources) with a specific location for ships to moor,
 
16           as follows:
 
17           (A)  Maui:     Lahaina;
 
18           (B)  Kauai:    Kikiaola, Hanalei;
 
19           (C)  Hawaii:   Wailoa, Kailua-Kona; and
 
20           (D)  Lanai:    Manele.
 
21 Moneys deposited in the harbor special fund from other sources
 
22 may not be used for this purpose.  The department of land and
 
23 natural resources may request moneys from the harbor special fund
 

 
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 1 from the department of transportation for specific harbors and
 
 2 itemized repairs for those specific harbors.
 
 3      [(c)] (d)  All expenditures by the department shall be made
 
 4 on vouchers duly approved by the director of transportation or
 
 5 such other officer as may be designated by the director of
 
 6 transportation."
 
 7      SECTION 4.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 5.  This Act shall take effect on July 1, 2010.