THE SENATE

S.B. NO.

1252

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to the university of hawaii.

 

 

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

 


     SECTION 1.  The legislature finds that intercollegiate athletics programs of the University of Hawaii are unique when compared to athletic programs at other institutions.  The legislature further finds that the community places a high value on, and takes much pride in, the intercollegiate athletics programs of the University of Hawaii.  All teams and individuals competing for the university have dedicated fans who enjoy the efforts of the athletes and entertainment of sports contests.

     The legislature also finds that in contemporary society, intercollegiate athletics receive much publicity and media coverage, and the participation of the University of Hawaii in various sports increases the exposure of people on the mainland and in foreign countries to the State of Hawaii.  University of Hawaii athletes are also "Ambassadors of Aloha" when they travel out-of-state, and athletes have an opportunity to uniquely and authentically represent Hawaii.  Games and events that are televised nationally and internationally also are important marketing tools to attract visitors to the State and showcase a premier higher education institution.  Family, friends, and supporters of visiting schools often accompany the teams and stay for an extended time.

     The legislature finds that the costs for University of Hawaii at Manoa student athletes to travel to the mainland are high because of the distance traveled.  Moreover, the university must subsidize the travel expenses of some visiting teams that come to Hawaii.  Lastly, the scholarship costs are higher at the University of Hawaii at Manoa when compared to peer universities because its athletic program has a higher percentage of non-resident student-athletes.  In total, University of Hawaii at Manoa athletic costs are $5,200,000 higher than its peer institutions.  As a result, rather than competing in collegiate athletics on a level playing field, University of Hawaii at Manoa athletics is at a competitive disadvantage because a significant portion of its budget must be used to offset costs that other athletic programs do not have.

     The legislature also finds that athletics at the University of Hawaii at Hilo is a source of great pride to the community of Hilo and the Big Island.  There is a vibrant history of connection between the community and the university's "Vulcan" athletics.  Vulcan athletics not only provides a source of community activity, but is a key component contributing to the overall student life experience for the diverse campus body.  University of Hawaii at Hilo athletics is a significant economic driver to the island of Hawaii's economy, bringing in thousands of people from visiting teams and families each year.  Such activity positively benefits the local businesses of hotels, restaurants, airlines, car rental agencies, and other small businesses.  The University of Hawaii at Hilo athletics is of great community and economic benefit to the Big Island, neighbor island communities, and the State.

     The purpose of this Act is to address the intercollegiate athletics program of the University of Hawaii.  Specifically, this Act requires moneys from the transient accommodations tax be distributed to the University of Hawaii at Manoa and University of Hawaii at Hilo for the next three fiscal years to offset the higher and unique costs of its athletic programs.

     SECTION 2.  Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  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 fund balance of $5,000,000 in the tourism emergency special fund;

     (4)  $103,000,000 for fiscal year 2014-2015, $103,000,000 for fiscal year 2015-2016, $103,000,000 for fiscal year 2016-2017, and $93,000,000 for each fiscal year thereafter 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[.]; and

     (6)  Beginning on July 1, 2017, and each fiscal year thereafter until June 30, 2020:

         (A)  $           shall be allocated to the University of Hawaii at Manoa intercollegiate athletics special fund established pursuant to section 304A-2176; and

         (B)  $           shall be allocated to the University of Hawaii at Hilo intercollegiate athletics special fund established pursuant to section 304A-2176.

     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."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall be repealed on June 30, 2020.

 

INTRODUCED BY:

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Report Title:

University of Hawaii; Transient Accommodations Tax; Intercollegiate Athletics Program

 

Description:

Allocates portion of the transient accommodations tax to help fund the intercollegiate athletic programs at the University of Hawaii at Manoa and University of Hawaii at Hilo to offset the higher costs that the University of Hawaii must pay for athletics compared to peer institutions.  Repeals 6/30/2020.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.