Report Title:

Landing Fees; Tax Credit

Description:

Authorizes the waiving of landing fees, joint use charge fees, and exclusive use terminal rental fees for a thirty-day period. Authorizes the deferment of landing fees, joint use charge fees, and exclusive use terminal rental fees for two subsequent thirty-day periods. (SB1172 HD2)

THE SENATE

S.B. NO.

1172

TWENTY-SECOND LEGISLATURE, 2003

S.D. 2

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

relating to airlines.

 

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

SECTION 1. The political, economic, and security uncertainties caused by the armed conflict with Iraq rise with each passing day.

Furthermore, on February 7, 2003, the federal government raised the domestic terror alert from "high" to "elevated" because of a concern about a high risk of attacks by the al-Qaeda terrorist network against U.S. targets at home and abroad. U.S. intelligence and health officials have stated in public announcements and private briefings that they are particularly concerned about chemical, biological, or radiological weapons, including "dirty bombs" that would spread radioactive debris over a wide area.

The legislature is very concerned over the impact the war is having, and will continue to have, on Hawaii's economy and people. Although the State has enjoyed some success in economic diversification, tourism remains a crucial pillar of the economy.

As our nation continues its fight with Iraq, a look back at history can provide valuable insight on the potential effects such a war may have on the State's economy. For example, the Persian Gulf War of 1991 drastically reduced the demand for air travel, with leisure destinations, such as Hawaii, hardest hit. Combined with a reduction in visitors, a significant spike in fuel prices also occurred, thus inflicting further damage on the already weakened economy.

Moreover, neither our nation nor our state has fully recovered from the impact of the terrorist attacks of September 11, 2001. While Hawaii's economy is slowly improving, our recovery has been gradual and fragile and can easily be derailed by another terrorist attack or by a continuing war.

The purpose of this Act is to shield Hawaii's tourist industry and economy from the initial impact of the war, by authorizing the director of transportation to:

(1) Waive the airport:

(A) Landing fees;

(B) Joint use charge fees; and

(C) Exclusive use terminal rental fees

by qualifying carriers for a thirty-day period;

and

(2) Defer payment of airport landing fees, joint use charge fees, and exclusive use terminal rental fees for qualifying carriers for two subsequent thirty-day periods.

SECTION 2. As used in this Act:

"Air carrier" means any entity that undertakes to provide or holds itself out to the general public as engaging directly or indirectly in the transportation of passengers by air for compensation or hire within the State, between points within the State, or between the State and overseas destinations.

"Director" means the director of transportation.

"Fees" means the airport landing fee, joint use charge fee, or the exclusive use terminal rental fee, as the context requires, payable by the air carrier to the department of transportation.

"In-bound passenger load" means the number of passengers of an air carrier whose flight originates outside of or within the State, and who disembark from the flight at a location within the State.

"Program" means the airport landing fee, joint use charge fee, or exclusive use terminal rental fee waiver and deferral program, as the context requires, for qualifying air carriers.

"Qualifying air carrier" means an air carrier whose monthly in-bound passenger load for the applicable thirty-day waiver or deferral period equals or is not less than ninety per cent of the air carrier's in-bound passenger load for the month of January 2003.

SECTION 3. (a) Notwithstanding any other law to the contrary, including chapter 261, Hawaii Revised Statutes, the director may establish an emergency program. The program shall:

(1) Be limited to a program period of ninety consecutive days following the declaration of an emergency by the director that exists because of a substantial decrease in in-bound passengers due to an armed conflict or war; and

(2) Entitle each qualifying air carrier to:

(A) A waiver of the fees for the first thirty consecutive days of the ninety-day program period;

(B) A deferral of the fees for the first thirty-day period following the thirty-day waiver period of the program; and

(C) A deferral of the fees for the second thirty-day period following the first thirty-day deferral period of the program.

(b) In establishing the program, the director:

(1) Shall prepare any necessary program application forms;

(2) Shall provide, to the extent possible, advance notice of the details of the program to all potentially qualifying air carriers; and

(3) May establish, implement, and enforce rules without regard to chapter 91, Hawaii Revised Statutes, for no longer than necessary to effectuate the purposes of this Act, in the event there is insufficient time for the director to adopt rules pursuant to chapter 91 because of the events justifying the declaration of an emergency by the director under this Act.

SECTION 4. The department of transportation shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2004, identifying the air carriers that qualify under the program, setting forth program costs, and including other relevant information related to the waiver or deferral of fees under the program.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2010.