Honolulu, Hawaii



RE:    S.B. No. 1069

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 1069 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to reduce noise pollution over residential areas.


     Specifically, this measure provides helicopter owners or operators an incentive to retrofit their helicopters with noise-canceling technology by:


     (1)  Establishing a tax credit for taxpayers who install a helicopter noise-canceling technology system on a helicopter owned by the taxpayer and operated primarily within the State during the taxable year; and


     (2)  Prohibiting commercial flights of tour helicopters within one mile of a residential neighborhood between 6:00 p.m. and 8:00 a.m. from Mondays through Saturdays, or between 6:00 p.m. and 9:00 a.m. on Sundays and holidays.


     Your Committee received testimony in support of this measure from the County of Hawaii Mayor's Office and numerous concerned individuals.


     Your Committee received comments on this measure from the Department of Taxation, Department of the Attorney General, and Tax Foundation of Hawaii.


     Your Committee finds that tour helicopters generate loud noise that could have a disruptive impact on the quality of life for Hawaii residents.


     Your Committee has amended this measure by:


     (1)  Providing that a qualified taxpayer shall not claim more than one tax credit per helicopter;


     (2)  Requiring a taxpayer claiming a helicopter noise-canceling technology system tax credit to furnish the Department of Taxation a certification from a qualified inspector or other qualified person that the helicopter and the helicopter's noise-canceling technology system meet the noise reduction requirement to qualify for the tax credit;


     (3)  Postponing the date that the tax credit would be available from taxable years beginning after December 31, 2018, to taxable years beginning after December 31, 2019;


     (4)  Clarifying that for purposes of qualifying for the tax credit, the maximum sound level of a helicopter shall be measured at an unspecified number of feet from the helicopter;


     (5)  Clarifying that commercial flights of tour helicopters within one mile of residential neighborhoods shall be prohibited except between 8:00 a.m. and 6:00 p.m. on Monday through Saturday, or between 9:00 a.m. and 6:00 p.m. on Sunday or a state holiday;


     (6)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and


     (7)  Making technical nonsubstantive amendments for the purposes of clarity and style.


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1069, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1069, S.D. 1, and be placed on the calendar for Third Reading.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,