HOUSE OF REPRESENTATIVES

H.B. NO.

911

THIRTIETH LEGISLATURE, 2019

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TOURISM.

 

 

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

 


SECTION 1. The legislature finds that Hawaii is vulnerable to a wide variety of natural disasters, including volcanic eruptions, tsunami, wildfires, flooding, and tropical cyclones. This vulnerability was underscored this past year, as the State experienced serious property damage from major flooding events, the close approach of Hurricane Lane, and the landfall of Tropical Storm Olivia. Although much emphasis has been placed on ensuring that our residents are prepared for natural disasters, the State also has a responsibility to ensure the safety of its visitor population. The magnitude of this responsibility is substantial, as the State hosts up to two hundred twenty thousand visitors on any given day.

The legislature notes that the Hawaii convention center is a large facility consisting of 1,100,000 square feet across multiple floors, including a two hundred thousand square foot exhibition hall with drive-on floor access and a three hundred fifty-pound per square foot floor load capacity. The convention center also serves as the emergency operations center for the Hawaii tourism authority to address and direct the tourism industry during statewide emergencies. Accordingly, the legislature finds that the convention center could serve as a valuable resource in the case of a natural disaster or other emergency. Specifically, the convention center could shelter visitors from nearby Waikiki and serve as a logistics center from which the Hawaii tourism authority could distribute key emergency supplies.

Although the Hawaii tourism authority has access to the tourism emergency special fund established by section 201B-10, Hawaii Revised Statutes, this fund was not intended to be used directly for the convention center. Therefore, the legislature finds that additional funds must be made available to the Hawaii tourism authority to ensure that the convention center is properly maintained and can be used to its full potential in the case of an emergency.

Accordingly, the purpose of this Act is to:

(1) Establish a convention center repair and maintenance special fund for the repair and maintenance of the Hawaii convention center;

(2) Amend the permissible uses of the convention center enterprise special fund established pursuant to section 201B-8, Hawaii Revised Statutes;

(3) Establish a convention center emergency special fund to be used to facilitate the Hawaii convention center's use as a resource for the tourism industry in the event of a disaster or other emergency; and

(4) Allocate portions of transient accommodations tax revenue to these special funds in fiscal years 2019-2020, 2020-2021, 2021-2022, and 2022-2023.

SECTION 2. Chapter 201B, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:

"201B-A Convention center repair and maintenance special fund. (a) There is established in the state treasury the convention center repair and maintenance special fund, into which shall be deposited:

(1) A portion of the revenues from any transient accommodations tax, as provided by section 237D-6.5;

(2) Appropriations by the legislature to the convention center repair and maintenance special fund;

(3) Investment earnings from moneys in the convention center emergency special fund established pursuant to section 201B-B; and

(4) Gifts, grants, and other funds accepted by the authority.

(b) Moneys in the convention center repair and maintenance special fund may be:

(1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or

(2) Otherwise invested by the authority until such time as the moneys may be needed; provided that the authority shall limit its investments to those listed in section 36-21.

All interest accruing from the investment of these moneys shall be credited to the convention center repair and maintenance special fund.

(c) Moneys in the convention center repair and maintenance special fund shall be used for repair and maintenance of the Hawaii convention center; provided that moneys in the convention center repair and maintenance special fund may also be used for capital improvements to the Hawaii convention center.

(d) Expenditure of the funds in the repair and maintenance special fund shall require approval of the board.

(e) The authority shall submit to the legislature no later than twenty days prior to the convening of each regular session a report on the expenditure of moneys from the special fund in the previous fiscal year, the balance of the moneys remaining in the special fund, and the purpose for which those moneys are to be used.

201B-B Convention center emergency special fund. (a) There is established outside the state treasury a convention center emergency special fund to be administered by the board, into which shall be deposited the revenues prescribed by section 237D6.5(b). All investment earnings from moneys in the special fund shall be credited to the convention center repair and maintenance special fund established pursuant to section 201B-A.

(b) Moneys in the special fund shall be used to facilitate the use of the convention center as a resource for the tourism industry in case of a natural disaster or other emergency. Expenditure of the funds in the convention center emergency special fund shall require an emergency declaration by the governor, authorizing expenditure of the funds, and approval of the board.

(c) The authority shall submit to the legislature, no later than twenty days prior to the convening of each regular session, a report on the expenditure of moneys from the special fund in the previous fiscal year, the balance of the moneys remaining in the special fund, and the purpose for which those moneys are to be used.

(d) Use of the special fund, consistent with subsection (b), shall be provided for in articles, bylaws, resolutions, or other instruments executed by the board as administrator for the special fund."

SECTION 3. Section 201B-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Moneys in the convention center enterprise special fund shall be used by the authority for the payment of expenses arising from any and all use, operation, [maintenance,] alteration, or capital improvement [, or any unforeseen or unplanned repairs] of the convention center[,] that does not qualify as a repair or maintenance project to be funded under the convention center repair and maintenance special fund established pursuant to section 201B-A, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major [repair, maintenance, and] improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to section 201B-7(a)(7)."

SECTION 4. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Except for the revenues collected pursuant to section 237D-2(e), 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) $16,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;

(3) $79,000,000 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 $79,000,000 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 $79,000,000 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 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[.];

(6) $         for fiscal years 2019-2020, 2020-2021, 2021-2022, and 2022-2023 shall be allocated to the convention center repair and maintenance special fund established under section 201B-A; and

(7) $         for fiscal years 2019-2020, 2020-2021, 2021-2022, and 2022-2023 shall be allocated to the convention center emergency special fund established under section 201B-B.

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 5. In codifying the new sections added by section 2 of this Act and referenced in sections 3 and 4 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2099.



 

Report Title:

Transient Accommodations Tax; Convention Center Repair and Maintenance Special Fund; Convention Center Emergency Special Fund; Establishment

 

Description:

Establishes the Convention Center Repair and Maintenance Special Fund and the Convention Center Emergency Special Fund. Allocates a portion of the transient accommodations tax to those funds. Removes repair and maintenance as permissible uses of the Convention Center Enterprise Special Fund. Requires annual reports to the Legislature. (HB911 HD2)

 

 

 

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