Report Title:

Public Transit; County Surcharge on State Tax

Description:

Creates statewide transit authority. Authorizes counties to levy a county surcharge on state tax to fund public transit in the counties. Creates a special fund to hold surcharge collections to be expended on mass transit in the counties.

THE SENATE

S.B. NO.

1116

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to STATEWIDE TRANSIT AUTHORITY.

 

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

SECTION 1. The legislature finds that it is incumbent upon government to help residents by making it possible for them to travel between home, work, and recreation in a timely, efficient manner. While potholes need to be filled, it is not only potholes that are slowing down and tying up traffic. A solution to transportation problems on all islands has eluded the State for many years. Every attempt has fallen short, despite the best efforts of many informed and knowledgeable people, including a multitude of experts.

Bigger highways, more buses, and ferries are inadequate over the long term to serve transportation needs, and are unsuitable for many areas of the largest county. In contrast, a fixed light rail system has possibilities but the costs are prohibitive without a heavy investment of revenues. Nevertheless, light rail is not suitable for every county.

Although transportation planning is historically a county function, except for the state highway system, the State can assist the counties by providing them with assistance in mass transit design and planning, and with construction financing ability.

The purpose of this Act is to:

(1) Establish a statewide transit authority;

(2) Confer tax authority upon the counties to raise revenues for a mass transit system suitable for the respective county's needs; and

(3) Establish a special fund to fund mass transit in the counties.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

STATEWIDE TRANSIT AUTHORITY

§   -1 Definitions. As used in this chapter:

"Authority" means the statewide mass transit authority created by this chapter.

"Mass transit" or "mass transportation" has the same meaning as defined in section 51-1.

"Mass transit plan" means the plan for mass transportation as developed by the authority pursuant to this chapter.

§   -2 Statewide transit authority; creation; composition. (a) There is created the statewide transit authority as an advisory body responsible for assisting and advising the counties on formulating a continuing, comprehensive, mass transit planning process for each county in cooperation with the county. The authority shall be a body corporate and a public instrumentality of the State, but shall be immune from liability arising from any of its functions under this chapter. The authority shall be under the state department of transportation for administrative purposes.

(b) The statewide transit authority shall be composed of the governor, the mayors of each county, the transportation directors of the State and the counties, the planning director of each county, or their designees, and the chairperson of the metropolitan planning organization under chapter 279E.

(c) The authority shall have the power, in conjunction and cooperation with the counties, to plan, design, develop, finance, construct, operate, repair, maintain, and manage a mass transit system within each county of the State, as deemed appropriate by the members of the authority. The determination of an appropriate mass transit system for each county shall be made by the statewide transit authority.

§   -3 Expenditures by counties for mass transit systems.

(a) A county may enact by ordinance a county mass transit surcharge under sections 237- and 238- to fund mass transportation projects. No county shall contract for or expend funds for a mass transit system, excluding maintenance of existing roads and highways, without the prior approval of the authority. The authority shall not approve of any county expenditure on mass transportation if the expenditure does not comport with the mass transit plan for that county. The amount of federal funding for mass transportation shall be considered in cost estimates and expenditures for mass transit.

(b) Expenditures for a mass transit within a county shall be made from the county mass transit surcharge special fund established under section 46-   ."

SECTION 3. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46-   County mass transit surcharge special fund; establishment. (a) There is established in the state treasury a special fund to be known as the county mass transit surcharge special fund, into which shall be deposited moneys collected from the county mass transit surcharge under sections 237-   and 238-  . All interest earned or accrued on moneys deposited in the county mass transit surcharge special fund shall become realizations of the fund.

(b) The moneys in the county mass transit surcharge special fund shall be expended solely to provide funding for the development of a mass transit system in any county, as provided in chapter   . Expenditures from the fund shall be made by an appropriation measure passed by the state legislature and enacted into law."

SECTION 4. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-   County mass transit surcharge. (a) In addition to the general excise taxes levied under this chapter, a county, pursuant to ordinance, may assess, levy, and collect a county mass transit surcharge on sales occurring in the county. The amount of the surcharge shall be up to      per cent. The surcharge shall be imposed in the same manner and to the same extent as provided in this chapter for the general excise tax.

(b) The county mass transit surcharge shall be remitted in the manner provided in section 237-31.

(c) The exemptions under section 237-23 shall apply to this section.

(d) Proceeds realized from the county mass transit surcharge under this section shall be deposited into the mass transit special fund under section 46-  .

(e) The department, upon request of a county, shall collect the county mass transit surcharge on behalf of the county. A county electing to exercise the authority granted under this section shall notify the director within ten days after the county has adopted a surcharge, and the director shall levy, assess, collect, and otherwise administer the county surcharge.

(f) The department shall report to the legislature annually not later than twenty days prior to the convening of each regular session, beginning with the regular session of 2007, on the gross realizations from the county mass transit surcharge."

SECTION 5. Chapter 238, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§238-   County mass transit surcharge. (a) In addition to the use taxes levied under this chapter, there shall be assessed, levied, and collected a county mass transit surcharge on uses in the State occurring in the county. The amount of the surcharge shall be up to      per cent. The surcharge shall be imposed in the same manner and to the same extent as provided in this chapter for the use tax.

(b) The county mass transit surcharge shall be remitted in the manner provided in section 238-5.

(c) Proceeds realized from the county mass transit surcharge under this section shall be deposited into the mass transit special fund under section 46-   .

(d) The department, upon request of a county, shall collect the county mass transit surcharge on behalf of the county. A county electing to exercise the authority granted under this section shall notify the director within ten days after the county has adopted a surcharge, and the director shall levy, assess, collect, and otherwise administer the county surcharge.

(e) The department shall report to the legislature annually not later than twenty days prior to the convening of each regular session, beginning with the regular session of 2007, on the gross realizations from the county mass transit surcharge."

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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