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HomeMy WebLinkAboutResolution No. 2017-49, Draft 1COUNTY COUNCIL COUNTY OF KAUA’I &£~~IO luti 011 No.2017-49,Draft 1 RESOLUTION APPROVING PROPOSALS FOR INCLUSION IN THE 2018 HAWAI’I STATE ASSOCIATION OF COUNTIES LEGISLATIVE PACKAGE BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA’I,STATE OF HAWAI’I: WHEREAS,legislative proposals have been submitted by member counties of the Hawai’i State Association of Counties (HSAC)for consideration by the County Councils for inclusion in the 2018 HSAC Legislative Package;and WHEREAS,at its meetings of September 11,2017,the HSAC Executive Committee approved for inclusion in the 2018 HSAC Legislative Package the following: 1.Relating to Conveyance Tax.Increases revenue for each County’s affordable housing fund through a one percent conveyance tax on the sale of residential properties over $2,000,000.(County of Maui) 2.Relating to Transient Accommodations Tax.Requires online travel companies and other transient accommodations remarketers to pay transient accommodations tax on their respective portions of gross rental proceeds from the payment of accommodations.(County of Maui) 3.Relating to Transient Accommodations Tax.Removes the Cap for Distribution of Transient Accommodations Tax Revenue to the Counties. (County of Kaua’i) 4.Relating to Automatic Fire Suppression Systems.Establishes a tax credit of 25 percent of the total cost,including installation,of an automatic fire suppression system in any new detached one or two-family dwelling unit in a structure used only for residential purposes.Sunsets on June 30,2026. (County of Kaua’i) 1 5.Relating to Taxation.Provides a taxpayer who hires an individual with a disability a nonrefundable tax credit for the six-month period after the individual is initially hired by the taxpayer.(County of Kaua’i) 6.Relating to Taxation.Provides a taxpayer who hires an elderly individual a nonrefundable tax credit for the six-month period after the individual is initially hired by the taxpayer.(County of Kaua’i) 7.Relating to Zoning.Clarifies county zoning authority by distinguishing Single-Family residential use from Single-Family vacation rental use and allowing amortization by ordinance for Single-Family Transient Vacation Rentals over a reasonable period.(County of Kaua’i) WHEREAS,at its meeting of September 11,2017,the HSAC Executive Committee approved for inclusion in the 2018 HSAC Legislative Package the following 2017 HSAC Legislative Package measures: 1.A Bill For An Act Relating To Tort Liability 2.A Bill For An Act Relating To Unadjudicated Traffic Fines 3.A Bill For An Act Making An Appropriation For Emergency Medical Services 4.A Bill For An Act Relating To Unmanned Aerial Vehicles 5.A Bill For An Act Relating To Community Meetings 6.A Bill For An Act Relating To Identification Cards For Persons With Disabilities 7.A Bill For An Act Relating To Transient Accommodations Tax 8.A Bill For An Act Relating To Government Records 9.A Bill For An Act Relating To Important Agricultural Lands 10.A Bill For An Act Relating To Collective Bargaining WHEREAS,HSAC Bylaws require that all four (4)Counties approve each proposal for inclusion in the HSAC Legislative Package;now,therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF KAUA’I, STATE OF HAWAI’I,that it hereby approves the following proposals which are attached hereto for inclusion in the 2018 HSAC Legislative Package: 1.Relating to Conveyance Tax 2.Relating to Transient Accommodations Tax 3.Relating to Automatic Fire Suppression Systems 4.Relating to Taxation 5.Relating to Taxation 6.Relating to Zoning 7.A Bill For An Act Relating To Tort Liability 2 8.A Bill For An Act Relating To Unadjudicated Traffic Fines 9.A Bill For An Act Making An Appropriation For Emergency Medical Services 10.A Bill For An Act Relating To Unmanned Aerial Vehicles 11.A Bill For An Act Relating To Community Meetings 12.A Bill For An Act Relating To Identification Cards For Persons With Disabilities 13.A Bill For An Act Relating To Transient Accommodations Tax 14.A Bill For An Act Relating To Government Records 15.A Bill For An Act Relating To Important Agricultural Lands 16.A Bill For An Act Relating To Collective Bargaining BE IT FURTHER RESOLVED,that a certified transmitted to the HSAC Executive Committee. copy of this Resolution be Introduced by:Is!DEREK S.K.KAWAKAMI V:\RESOLUTIONS\20 16-2018 TERM\Reso 2017-49 Draft 1 HSAC 2018 LegPackage YS_dmc.docx .~~ap Q~xtu~eb ~ccu~b ~&un X qoa~x Ja~a~irn X 3aan~≤1jiro X i~a~uakami X 3aapo~o X ~uktmura X Zltotat 6 0 1 0 Qrertiticate ~t ~boption ~c Tjer~b~’certifp t~jat 3ae~otution ~o.2017-49,Draft 1 ~ua~abopftb bp tlJc Qtountfl of tIj~Qtount~’of ~aua’t,~‘tate of ~~xia~’I,ILilju’c,I~aua’i,~a~uai’i,on October 18,2017. ~4j3unt~~Qfl~rk -- ~atcb October 19,2017 QE4jatrman &~i$re≤L~In~~ffic~r 3 TWENTY-NINTH LEGISLATURE,2017 STATE OF HAWAI’I .B.NO. A BILL FOR AN ACT RELATING TO ZONING BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAI’I: 1 SECTION 1.Section 46-4,Hawai’i Revised Statutes,is amended by 2 amending subsection (a)to read as follows: 3 “(a)This section and any ordinance,rule,or regulation adopted in 4 accordance with this section shall apply to lands not contained within the 5 forest reserve boundaries as established on January 31,1957,or as 6 subsequently amended. 7 Zoning in all counties shall be accomplished within the framework of a 8 long-range,comprehensive general plan prepared or being prepared to guide 9 the overall future development of the county.Zoning shall be one of the tools 10 available to the county to put the general plan into effect in an orderly 11 manner.Zoning in the counties of Hawai’i,Maui,and Kaua’i means the 12 establishment of districts of such number,shape,and area,and the adoption 13 of regulations for each district to carry out the purposes of this section.In 14 establishing or regulating the districts,full consideration shall be given to all 15 available data as to soil classification and physical use capabilities of the land __.B.NO.____ 1 to allow and encourage the most beneficial use of the land consonant with 2 good zoning practices.The zoning power granted herein shall be exercised by 3 ordinance which may relate to: 4 (1)The areas within which agriculture,forestry,industry, 5 trade,and business may be conducted; 6 (2)The areas in which residential uses may be regulated or 7 prohibited; (3)The areas bordering natural watercourses,channels,and 9 streams,in which trades or industries,filling or dumping,erection of 10 structures,and the location of buildings may be prohibited or 11 restricted; 12 (4)The areas in which particular uses may be subjected to 13 special restrictions; 14 (5)The location of buildings and structures designed for 15 specific uses and designation of uses for which buildings and 16 structures may not be used or altered; 17 (6)The location,height,bulk,number of stories,and size of 18 buildings and other structures; 19 (7)The location of roads,schools,and recreation areas; 20 (8)Building setback lines and future street lines; 21 (9)The density and distribution of population; .B.NO. 1 (10)The percentage of a lot that may be occupied,size of 2 yards,courts,and other open spaces; 3 (11)Minimum and maximum lot sizes;and 4 (12)Other regulations the boards or city council find necessary 5 and proper to permit and encourage the orderly development of land 6 resources within their jurisdictions. 7 The council of any county shall prescribe rules,regulations,and .8 administrative procedures and provide personnel it finds necessary to enforce 9 this section and any ordinance enacted in accordance with this section.The 10 ordinances may be enforced by appropriate fines and penalties,civil or 11 criminal,or by court order at the suit of the county or the owner or owners of 12 real estate directly affected by the ordinances. 13 Any civil fine or penalty provided by ordinance under this section may 14 be imposed by the district court,or by the zoning agency after an opportunity 15 for a hearing pursuant to chapter 91.The proceeding shall not be a 16 prerequisite for any injunctive relief ordered by the circuit court. 17 Nothing in this section shall invalidate any zoning ordinance or 18 regulation adopted by any county or other agency of government pursuant to 19 the statutes in effect prior to July 1,1957. 20 The powers granted herein shall be liberally construed in favor of the 21 county exercising them,and in such a manner as to promote the orderly •B.NO. 1 development of each county or city and county in accordance with a long- 2 range,comprehensive general plan to ensure the greatest benefit for the 3 State as a whole.This section shall not be construed to limit or repeal any 4 powers of any county to achieve these ends through zoning and building 5 regulations,except insofar as forest and water reserve zones are concerned 6 and as provided in subsections (c)and (d). 7 Neither this section nor any ordinance enacted pursuant to this section S shall prohibit the continued lawful use of any building or premises for any 9 trade,industrial,residential,agricultural,or other purpose for which the 10 building or premises is used at the time this section or the ordinance takes 11 effect;provided that a zoning ordinance may provide for elimination of 12 nonconforming uses as the uses are discontinued,or for the amortization or 13 phasing out of nonconforming uses or signs over a reasonable period of time 14 in commercial,industrial,resort,and apartment zoned areas only[-1;and 15 provided further that a zoning ordinance may provide for the amortization or 16 phasing out of nonconforming single-family transient vacation rental units or 17 nonconforming single-family transient vacation units over a reasonable 18 period of time in an area of any zoning classification.In no event shall such 19 amortization or phasing out of nonconforming uses apply to any existing 20 building or premises used for residential (single-family or duplex)or .B.NO. 1 agricultural uses.Nothing in this section shall affect or impair the powers 2 and duties of the director of transportation as set forth in chapter 262.” 3 SECTION 2.Statutory material to be repealed is bracketed and 4 stricken.New statutory material is underscored. 5 SECTION 3.This Act shall take effect upon its approval. 6 Introduced by: 7 Report Title:County Zoning;Single-Family Transient Vacation Rentals Description:Clarifies County zoning authority by distinguishing Single-Family residential use from Single-Family vacation rental use and allowing -amortization by ordinance for Single-Family Transient Vacation Rentals over a reasonable period. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. JUSTIFICATION SHEET Title:A Bill For An Act Relating to Zoning Purpose:This proposed Bill for an Act distinguishes Single-Family residential use from Single-Family vacation rental use,and allows amortization by Ordinance for Single-Family Transient Vacation Rentals over a reasonable period of time. Means:Amends Section 46-4 of the Hawai’i Revised Statutes Justification:This proposed Bill was introduced by several Legislators during the 2014 Hawai’i State Legislative Session,addressing the issue regarding Single-Family Transient Vacation Rentals and whether they should be treated as residential or resort units.It is evident that the vacation rental market has grown over the year and has significantly impacted many residential areas. The current statute allows certain vacation rental operations to circumvent many regulatory controls and claim their use is residential.To properly regulate and align non-conforming vacation rentals with other similar uses,this proposal distinguishes Single-Family residential use from Single-Family vacation rental use,and allows amortization by ordinance for Single-Family Transient Vacation Rentals over a reasonable period of time. TWENTY-NINTH LEGISLATURE,2017 STATE OF HAWAI’I .B.NO. A BILL FOR AN ACT RELATING TO TAXATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAI’I: 1 SECTION 1.Section 235,Hawai’i Revised Statutes,is amended by 2 adding a new section to be appropriately designated and to read as follows: 3 1235-Income tax credit for hiring an individual with a 4 disability.(a)There shall be allowed to each taxpayer subject to the tax s imposed by this chapter,a credit for the hiring of an individual with a 6 disability that shall be deductible from the taxpayer’s net income tax liability, 7 if any,imposed by this chapter for the taxable year in which the credit is 8 properly claimed. 9 (b)The amount of the credit shall be e~ua1 to fifty per cent of the 10 ~ualifled wages for the first six months after an individual with a disability is 11 initially hired.A tax credit that exceeds the taxpayer’s income tax liability 12 may be used as a credit against the taxpayer’s income tax liability in 13 subsequent years until exhausted;provided that in no taxable year shall the 14 total amount of the tax credit claimed under this section exceed $per 15 taxpayer. .B.NO. 1 (c)Certification of an individual with a disability for the purpose of 2 claiming a credit under this section shall be submitted to the department of 3 taxation on forms prescribed by the department of taxation. 4 (d)An individual shall not be treated as an individual with a 5 disability unless,on or before the day on which the individual begins work for 6 the employer,the employer has received certification from a qualified 7 physician.If an individual has been certified as an individual with a 8 disability and the certification is incorrect because it was based on false 9 information provided by the individual,the certification shall be revoked and 10 wages naid by the employer after the date on which notice of revocation is 11 received by the emniover shall not be treated as qualified wages. 12 In any request for a certification of an individual as an individual with 13 a disability,the employer shall certify that a good faith effort was made to 14 determine that such individual is an individual with a disability. 15 (e)The following wages paid to an individual with a disability are 16 ineligible to be claimed by the employer for this credit: 17 (1)No wages shall be taken into account under this section 18 with respect to an individual with a disability who: 19 a.Bears any of the relationships described in 20 section 152(d)(2)(A)through (G)of the Internal 21 Revenue Code to the taxpayer,or,if the taxnaver is 2 .B.NO. a corporation,to an individual who owns,directly 2 or indirectly,more than fifty per cent in value of 3 the outstanding stock of the corporation 4 (determined with the application of Section 267(c) S of this Internal Revenue Code); 6 b.If the taxpayer is an estate or trust,is a grantor, 7 beneficiary,or fiduciary of the estate or trust,or is 8 an individual who bears any of the relationships 9 described in Section 152(d)(2)(A)through (Q)of the 10 Internal Revenue Code to a grantor,beneficiary or 11 fiduciary of the estate or trust;or 12 c.Is a dependent (described in Section 152(d)(2)(H)of 13 the Internal Revenue Code)of the taxpayer,or,if 14 the taxpayer is an estate or trust,of a grantor, 15 beneficiary,or fiduciary of the estate or trust;and 16 (2)No wages shall be taken into account under this section 17 with respect to any individual with a disability if,prior to 18 the day the individual is hired by the employer,the 19 individual had been employed by the employer at any 20 time. 3 .B.NO. 1 (f)In the case of a successor emniover referred to in 2 Section 3306(b)(1)of the Internal Revenue Code,the determination of the 3 amount of the tax credit allowable under this section with respect to wages 4 paid by the successor employer shall be made in the same manner as if the 5 wages were paid by the predecessor employer referred to in the section. 6 (g)Claims for the tax credit under this section,including any 7 amended claims,shall be filed on or before the end of the twelfth month 8 following the taxable year for which the credit may be claimed.Failure to 9 comply with the foregoing provision shall constitute a waiver of the right to 10 claim the tax credit. 11 th)The Director of Taxation: 12 (1)Shall prepare any forms necessary to claim a credit under 13 this section; 14 (2)May require a taxpayer to furnish reasonable information 15 to ascertain the validity of a claim for credit;and 16 (3)May adopt rules pursuant to Chapter 91 to effectuate the 17 purposes of this Section. 18 (i)For purposes of this section: 19 “Individual with a disability”means an individual having a 20 physical or intellectual impairment that substantially limits one or 21 more major life activities,having a record of that impairment,or being 4 .B.NO. 1 regarded as having that impairment;provided that the disablii~,g 2 impairment is certified by a aualifled physician. 3 “Qlfid physician”means: 4 (1)A physician or osteopathic physician licensed under 5 Chapter 453; 6 (2)A qualified out-of-state physician who is currently 7 licensed to practice in the state in which the physician resides; 8 9 (3)A commissioned medical officer in the United 10 States Army.Navy,Marine Corps,or Public Health Service, 11 engaged in the discharge of one’s official duty. 12 “Qualified wages”means wages attributable to work rendered 13 by an individual with a disability for the six-month period after the 14 individual is initially hired. 15 “Wages”means wages,commissions,fees,salaries,bonuses,and 16 every and all other kinds of remuneration for,or compensation 17 attributable to.services performed by an employee for the employee’s 18 employer,including the cash value of all remuneration paid in any 19 medium other than cash and the cost-of-living allowances and other 20 payments included in gross income by Section 235-7(b).but excluding 5 .B.NO. 1 income excluded from gross income by Section 235-7 or other 2 yrovisions of this chayter.” 3 SECTION 2.New statutory material is underscored. 4 SECTION 3.This Act,upon its approval,shall apply to taxable years 5 beginning after December 31,2017. 6 7 INTRODUCED BY: 6 .B.NO. Report Title: Individual with a Disability;Employment;Income Tax Credit Description: Provides a taxpayer who hires an individual with a disability a nonrefundable tax credit for the six-month period after the individual is initially hired by the taxpayer. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. 7 TWENTY-NINTH LEGISLATURE,2017 STATE OF RAWAI’I .B.NO.____ A BILL FOR AN ACT RELATING TO TAXATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAI’I: 1 SECTION 1.Section 235,Hawai’i Revised Statutes,is amended by 2 adding a new section to be appropriately designated and to read as follows: 3 1235-Income tax credit for hiring an elderly individual. 4 (a)There shall be allowed to each taxpayer subject to the tax 5 imposed by this chapter,a credit for the hiring of an elderly individual that 6 shall be deductible from the taxpayer’s net income tax liability,if any, 7 imposed by this chapter for the taxable year in which the credit is properly 8 claimed. 9 (b)The amount of the credit shall be equal to fifty per cent of the 10 ciualified wages for the first six months after the elderly individual is initially 11 hired.A tax credit that exceeds the taxpayer’s income tax liability may be 12 used as a credit against the taxpayer’s income tax liability in subseciuent 13 years until exhausted:provided that in no taxable year shall the total 14 amount of the tax credit claimed under this section exceed $per 15 taxpayer. __.B.NO.____ i (c)The following wages paid to an elderly individual are ineligible 2 to be claimed by the employer for this credit: 3 (1)No wages shall be taken into account under this section 4 with respect to an elderly individual who: 5 a.Bears any of the relationships described in section 6 152(d)(2)(A)through (G)of the Internal Revenue Code 7 to the taxpayer,or,if the taxpayer is a corporation,to 8 an individual who owns,directly or indirectly,more 9 than fifty per cent in value of the outstanding stock of 10 the corporation (determined with the application of 11 section 267(c)of this Internal Revenue Code)~ 12 b.If the taxpayer is an estate or trust,is a grantor, 13 beneficiary.or fiduciary of the estate or trust,or is an 14 individual who bears any of the relationships 15 described in section 152(d)(2)(A)through (G)of the 16 Internal Revenue Code to a grantor,beneficiary or 17 fiduciary of the estate or trust:or 18 c.Is a dependent (described in section 152(d)(2)(H)of the 19 Internal Revenue Code)of the taxpayer,or,if the 20 taxpayer is an estate or trust,of a grantor,beneficiary, 21 or fiduciary of the estate or trust;and 2 .B.NO. 1 (2)No wages shall be taken into account under this section 2 with respect to any elderly individual if.prior to the day the individual 3 is hired by the employer,the individual had been employed by the 4 employer at any time. 5 (d)In the case of a successor employer referred to in section 6 3306(b)(1)of the Internal Revenue Code,the determination of the amount of 7 the tax credit allowable under this section with respect to wages paid by the 8 successor employer shall be made in the same manner as if the wages were 9 paid by the predecessor employer referred to in the section. 10 (e)Claims for the tax credit under this section,including any 11 amended claims,shall be filed on or before the end of the twelfth month 12 following the taxable year for which the credit may be claimed.Failure to 13 comply with the foregoing provision shall constitute a waiver of the right to 14 claim the tax credit. 15 (f)The director of taxation: 16 (1)Shall prepare any forms necessary to claim a credit under 17 this section; 18 (2)May require a taxpayer to furnish reasonable information 19 to ascertain the validity of a claim for credit;and 20 (3)May adopt rules pursuant to chapter 91 to effectuate the 21 purposes of this section. 3 .B.NO. 1 (f)For purposes of this section: 2 “Elderly individual”means an individual who is sixty-seven 3 years of age or older. 4 “Qualified wages”means wages attributable to work rendered 5 by an elderly individual for the six-month period after the individual is 6 initially hired. 7 “Wages”means wages,commissions,fees,salaries,bonuses,and 8 every and all other kinds of remuneration for,or compensation 9 attributable to,services nerformed by an employee for the employee’s 10 employer,including the cash value of all remuneration paid in any 11 medium other than cash and the cost-of-living allowances and other 12 payments included in gross income by section 235-7~b)~but excluding 13 income excluded from gross income by section 235-7 or other provisions 14 of this chapter.” 15 SECTION 2.New statutory material is underscored. 16 SECTION 3.This Act,upon its approval,shall apply to taxable years 17 beginning after December 31,2017. 18 19 INTRODUCED BY: 4 .B.NO. Report Title: Taxation;Income Tax Credit;Elderly Description: Provides a taxpayer who hires an elderly individual a nonrefundable tax credit for the six-month period after the individual is initially hired by the taxpayer. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. 5 TWENTY-NINTH LEGISLATURE,2017 STATE OF HAWAI’I _.B.NO.___ A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAI’I: SECTION 1.The purpose of this Act is to eliminate the cap established 2 for the distribution of transient accommodations tax revenues to the counties. 3 SECTION 2.Section 237D-6.5,Hawai’i Revised Statutes,is amended 4 by amending subsection (b)to read as follows: s “(b)Revenues collected under this chapter shall be distributed in the 6 following priority,with the excess revenues to be deposited into the general 7 fund: 8 (1)$1,500,000 shall be allocated to the Turtle Bay 9 conservation easement special fund beginning July 1,2015,for the 10 reimbursement to the state general fund of debt service on 11 reimbursable general obligation bonds,including ongoing expenses 12 related to the issuance of the bonds,the proceeds of which were used to 13 acquire the conservation easement and other real property interests in 14 Turtle Bay,O~ahu,for the protection,preservation,and enhancement .B.NO. 1 of natural resources important to the State,until the bonds are fully 2 amortized; 3 (2)$26,500,000 shall be allocated to the convention center 4 enterprise special fund established under section 201B-8; 5 (3)$82,000,000 shall be allocated to the tourism special fund 6 established under section 201B-11;provided that: 7 (A)Beginning on July 1,2012,and ending on June 30,2015,$2,000,000 shall be expended from the tourism 9 special fund for development and implementation of initiatives 10 to take advantage of expanded visa programs and increased 11 travel opportunities for international visitors to Hawaii; 12 (B)Of the $82,000,000 allocated: 13 (i)$1,000,000 shall be allocated for the 14 operation of a Hawaiian center and the museum of 15 Hawaiian music and dance at the Hawaii Convention 16 Center;and 17 (ii)0.5 per cent of the $82,000,000 shall be 18 transferred to a sub-account in the tourism special fund to 19 provide funding for a safety and security budget,in 20 accordance with the Hawai’i Tourism Strategic 21 Plan 2005-2015;and 2 .B.NO. 1 (C)Of the revenues remaining in the tourism special 2 fund after revenues have been deposited as provided in this 3 paragraph and except for any sum authorized by the legislature 4 for expenditure from revenues subject to this paragraph, 5 beginning July 1,2007,funds shall be deposited into the tourism 6 emergency special fund,established in section 201B-10,in a 7 manner sufficient to maintain a fund balance of $5,000,000 in 8 the tourism emergency special fund; 9 (4)[$103,000,000 for fiscal year 2014-2015,$103,000,000 for fiscal 10 year 2015-2016,$103,000,000 for fiscal year 2016-2017,and $93,000,000 for 11 each fiscal year thereafter]44.8 percent of the revenues collected under this 12 chapter after revenues have been deposited as provided in this section shall 13 be allocated to the counties and distributed as follows:Kaua’i County shall 14 receive 14.5 per cent,Hawai’i County shall receive 18.6 per cent,City and 15 County of Honolulu shall receive 44.1 per cent,and Maui County shall 16 receive 22.8 per cent;provided that commencing with Fiscal Year 2018-2019, 17 a sum that represents the difference between a County public employer’s 18 annual required contribution for the separate trust fund established under 19 Section 87A-42 and the amount of the County public employer’s contributions 20 into that trust fund shall be retained by the State Director of Finance and 21 deposited to the credit of the County public employer’s annual required 3 .B.NO. 1 contribution into that trust fund in each fiscal year,as provided in 2 Section 87A-42,if the respective county fails to remit the total amount of the 3 county’s required annual contributions,as required under Section 87A-43; 4 (5)$3,000,000 shall be allocated to the special land and 5 development fund established under Section 171-19;provided that the 6 allocation shall be expended in accordance with the Hawaii tourism 7 authority strategic plan for: 8 (A)The protection,preservation,maintenance,and 9 enhancement of natural resources,including beaches,important 10 to the visitor industry; 11 (B)Planning,construction,and repair of facilities;and 12 (C)Operation and maintenance costs of public lands, 13 including beaches,connected with enhancing the visitor 14 experience;and 15 All transient accommodations taxes shall be paid into the state 16 treasury each month within ten days after collection and shall be kept by the 17 State Director of Finance in special acóounts for distribution as provided in 18 this subsection. 19 As used in this subsection,“Fiscal Year”means the twelve month 20 period beginning on July 1 of a calendar year and ending on June 30 of the 21 following calendar year.” 4 .B.NO. SECTION 2.Statutory material to be repealed is bracketed 2 and stricken.New statutory material is underscored. 3 SECTION 3.This Act shall take effect upon its approval. 4 5 INTRODUCED BY: 5 .B.NO. Report Title: Transient Accommodations Tax Description: Removes the cap for distribution of transient accommodations tax revenues to the counties. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. 6 THIRTIETH LEGISLATURE,2018 STATE OF HAWAII .B.NO.____ A BILL FOR AN ACT RELATING TO AUTOIYJATIC FIRE SUPPRESSION SYSTEIYJS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAI’I: 1 SECTION 1.The legislature finds that an automatic fire suppression 2 system in one-or two-family dwellings are rare in the State.One reason for the 3 lack of an automatic fire suppression system in one-or two-family dwellings is the 4 cost of installing automatic fire suppression systems.The legislature finds that an s incentive is needed to promote the installation of automatic fire suppression system 6 in one-or two-family dwellings in the State. 7 The purpose of this Act is to provide an incentive to install an automatic fire 8 suppression system in any new detached one-or two-family dwelling unit that is in 9 a structure which is used only for residential purposes by establishing a tax credit 10 comprising a percentage of the actual costs of the system,including installation. 11 SECTION 2.Section 235,Hawai’i Revised Statutes,is amended by 12 adding a new section to be appropriately designated and to read as follows: 13 “~235-Tax credit to promote the installation of an 14 automatic fire supnression system in residences.(a)Any gualifvin~ 15 taxpayer who files an individual income tax return for a taxable year may .B.NO. 1 claim an income tax credit under this section against the Hawai’i state 2 individual net income tax. 3 (b)The tax credit may be claimed for every eligible automatic fire 4 suppression system that is installed and placed in service by the taxpayer 5 during the taxable year in any new detached one-or two-family dwelling unit 6 that is in a structure which is used only for residential purposes.For each 7 automatic fire suppression system,the tax credit that may be claimed shall 8 be twenty-five per cent of the actual cost of the system,including installation 9 costs;provided that multiple owners of a single automatic fire suppression 10 system shall be entitled to a single tax credit:and provided further that the 11 tax credit shall be apportioned between the owners in proportion to their 12 contribution to the cost of the automatic fire suppression system. 13 (c)If the tax credit claimed by the taxpayer under this section 14 exceeds the amount of the income tax payments due from the taxpayer,the 15~excess of credit over payments due shall be refunded to the taxpayer; 16 provided that the tax credit vro~er1v claimed by a taxpayer who has no 17 income tax liability shall be paid to the taxpayer:and provided that no 18 refunds or payments on account of the tax credit allowed by this section shall 19 be made for amounts less than $1. 2 .B.NQ. 1 (d)The director of taxation shall prepare such forms as may be 2 necessary to claim a credit under this section,may reciuire proof of the claim 3 for the tax credit,and may adopt rules pursuant to chapter 91. 4 (e)All of the provisions relating to assessments and refunds under 5 this chapter and under section 231-23(c)(1)shall apply to the tax credit under 6 this section. 7 (f)Claims for the tax credit under this section,including any 8 amended claims,shall be filed on or before the end of the twelfth month 9 following the taxable year for which the credit may be claimed.” 10 SECTION 2.New statutory material is underscored. 11 SECTION 3.This Act shall take effect upon its approval and shall 12 apply to taxable years beginning after December 31,2017;provided that this Act 13 shall be repealed on June 30,2025. 14 15 INTRODUCED BY: 3 B.NO. Report Title: Automatic Fire Suppression System;Tax Credit Description: Establishes a tax credit of twenty-five per cent of the total cost,including installation,of an automatic fire suppression system in any new detached one-or two-family dwelling unit in a structure used only for residential purposes.Sunsets onJune 30,2025. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. 4 .B.NO. A BILL FOR AN ACT RELATING TO THE CONVEYANCE TAX. BE IT ENACTED BY THE LEGISLATURE OF ‘I’HE STATE OF HAWAII: SECTION 1.Section 247-2,Hawaii Revised Statutes,is 2 amended to read as follows: 3 “S247-2 Basis and rate of tax.The tax imposed by section 4 247-1 shall be based on the actual and full consideration s (whether cash or otherwise,including any promise,act, 6 forbearance,property interest,value,gain,advantage,benefit, 7 or profit),paid or to be paid for all transfers or conveyance 8 of realty or any interest therein,that shall include any liens 9 or encumbrances thereon at the time of sale,lease,sublease, ~0 assignment,transfer,or conveyance,and shall be at the ii following rates: 12 (1)Except as provided in paragraph (2): 13 (A)Ten cents per $100 for properties with a value of 14 less than $600,000; 15 (B)Twenty cents per $100 for properties with a value 16 of at least $600,000,but less than $1,000,000;V EXHIBiT ~ft B r~ic~.___________ I (C)Thirty cents per $100 for properties with a value 2 of at least $1,000,000,but less than $2,000,000; 3 CD)Fifty cents per $100 for properties with a value 4 of at least $2,000,000,but less than $4,000,000; 5 CE)Seventy cents per $100 for properties with a 6 value of at least $4,000,000,but less than 7 $6,000,000; 8 (F)Ninety cents per $100 for properties with a value 9 of at least $6,000,000,but less than 10 $10,000,000;and 11 (G)One dollar per $100 for properties with a value 12 of $10,000,000 or greater;and 13 (2)For the sale of a condominium or single family 14 residence for which the purchaser is ineligible for a 15 county homeowner’s exemption on property tax: 16 (A)Fifteen cents per $100 for properties with a 17 value of less than $600,000; 18 (B)Twenty-five cents per $100 for properties with a 19 value of at least $600,000,but less than 20 $1,000,000; 21 (C)Forty cents per $100 for properties with a value 22 of at least $1,000,000,but less than $2,000,000; Page3 B E\ic~. 1 (ID)Sixty cents per $100 for properties with a value 2 of at least $2,000,000,but less than $4,000,000; 3 (E)Eighty-five cents per $100 for properties with a 4 value of at least $4,000,000,but less than 5 $6,000,000; 6 (F)One dollar and ten cents per $100 for properties 7 with a value of at least $6,000,000,but less 8 than $10,000,000;and 9 (G)One dollar and twenty-five cents per $100 for 10 properties with a value of $10,000,000 or 11 greaterL~];and 12 (3)In addition to the rate established by paragraph (1) 13 or (2),for the sale of a condominium or single family 14 residence:One dollar per $100 for properties with a is value of more than $2,000,000, 16 of such actual and full consideration;provided that in the case 17 of a lease or sublease,this chapter shall apply only to a lease 18 or sublease whose full unexpired term is for a period of five 19 years or more,and in those cases,including (where appropriate) 20 those cases where the lease has been extended or amended,the 21 tax in this chapter shall be based on the cash value of the 22 lease rentals discounted to present day value and capitalized at Page4 B.NC). 1 the rate of six per cent,plus the actual and full consideration 2 paid or to be paid for any and all improvements,if any,that 3 shall include on-site as well as off-site improvements, 4 applicable to the leased premises;and provided further that the 5 tax imposed for each transaction shall be not less than $1.” 6 SECTION 2.Section 247-7,Hawaii Revised Statutes,is 7 amended to read as follows: 8 “S247-7 Disposition of taxes.All taxes collected under 9 this chapter shall be paid into the state treasury to the credit 10 of the general fund of the State,to be used and expended for 11 the purposes for which the general fund was created and exists 12 by law;provided that of the taxes collected each fiscal year: 13 (1)Ten per cent of the revenue from application of the 14 rates established in paragraph (1)and (2)of section 15 247-2,or $6,800,000,whichever is less,shall be paid 16 into the land conservation fund established pursuant 17 to section 173A-5;[e~d] 18 (2)Fifty per cent of the revenue from application of the 19 rates established in paragraph (1)and (2)of section 20 247-2,or $38,000,000,whichever is less,shall be 21 paid into the rental housing revolving fund 22 established by section 20111-202 C--);and B I\i~~. 1 (3)One hundred percent of the revenue generated in each 2 county from application of the rate established in 3 paragraph (3)of section 247-2 shall be paid into the 4 respective county’s affordable housing fund and shall 5 only be used to increase the supply of affordable 6 housing by the following means: 7 (A)the purchase of existing housing units and other 8 interests in real property; 9 (B)the planning,design,or construction of housing 10 units; 11 (C)making grants or loans to nonprofit 12 organizations,including community land trusts; 13 14 (D)investment in public infrastructure.” 15 SECTION 3.Statutory material to be deleted is bracketed 16 and in s.trikethrough.New statutory material is underscored. 17 SECTION 4.This Act shall take effect upon its approval; 18 provided that this Act shall be repealed on June 30,2023. INTRODUCED BY:____________________________ paf:ske:17-173h .B.NO. A BILL FOR AN ACT RELATING TO GOVERNMENT RECORDS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: I SECTION 1.Section 92—2.5,Hawaii Revised Statutes,is 2 amended to read as follows: 3 “Permitted interactions of.members.(a)Two members of a 4 board may discuss between themselves matters relating to 5 official board business to enable them to perform their duties 6 faithfully,as long as no commitment to vote is made or sought 7 and the two members do not constitute a quorum of their board. 8 (b)Two or more members of a board,but less than the 9 number of members [which]that would constitute a quorum for the 10 board,may be assigned to: 11 (1)Investigate a matter relating to the official business 12 of their board;provided that: 13 (A)The scope of the investigation and the scope of 14 each member’s authority are defined at a meeting of the 15 board; HSAC-01 Page2 B.NO. 1 (B)All resulting findings and recommendations are 2 presented to the board at a meeting of the board;and 3 (C)Deliberation and decisionmaking on the matter 4 investigated,if any,occurs only at a duly noticed meeting 5 of the board held subsequent to the meeting at which the 6 findings and recommendations of the investigation were 7 presented to the board;or 8 (2)Present,discuss,or negotiate any position [w1~4-e.~] 9 that the board has adopted at a meeting of the board;provided 10 that the assignment is made and the scope of each member’s 11 authority is defined at a meeting of the board prior to the 12 presentation,discussion,or negotiation. 13 (c)Discussions between two or more members of a board,but less 14 than the number of members which would constitute a quorum for 15 the board,concerning the selection of the board’s officers may 16 be conducted in private without limitation or subsequent 17 reporting. 18 (d)Board members present at a meeting that must be canceled for 19 lack of quorum or terminated pursuant to section 92—3.5(c)may HSAC-O1 Page3 B.i\IO. 1 nonetheless receive testimony and presentations on items on the 2 agenda and question the testifiers or presenters;provided that: 3 (1)Deliberation or decisionmaking on any item,for which 4 testimony or presentations are received,occurs only at a duly 5 noticed meeting of the board held subsequent to the meeting at 6 which the testimony and presentations were received; 7 (2)The members present shall create a record of the oral 8 testimony or presentations in the same manner as would be 9 required by section 92—9 for testimony or presentations heard 10 during a meeting of the board;and 11 (3)Before its deliberation or decisionmaking at a 12 subsequent meeting,the board shall: 13 (A>Provide copies of the testimony and presentations 14 received at the canceled meeting to all members of the 15 board;and 16 (B)Receive a report by the members who were pre~ent 17 at the canceled or terminated meeting about the testimony 18 and presentations received. HSAC-O1 Page4 .B.i\i~.___________ 1 (e)Two or more members of a board,but less than the number of 2 members [which]that would constitute a quorum for the board, 3 may attend an informational meeting or presentation on matters 4 relating to official board business,including a meeting of 5 another entity,legislative hearing,convention,seminar,or 6 community meeting;provided that the meeting or presentation is 7 not specifically and exclusively organized for or directed 8 toward members of the board.The board members in attendance may 9 participate in discussions,including discussions among 10 themselves;provided that the discussions occur during and as 11 part of the informational meeting or presentation;and provided 12 further that no commitment relating to a vote on the matter is 13 made or sought. 14 At the next duly noticed meeting of the board,the board members 15 shall report their attendance and the matters presented and 16 discussed that related to official board business at the 17 informational meeting or presentation. 18 (f)Discussions between the governor and one or more members of 19 a board may be conducted in private without limitation or 20 subsequentreporting;provided that the discussion does not 21 relate to a matter over which a board is exercising its 22 adjudicatory function. HSAC-Ol B 1\Jc~. 1 (g)Discussions between two or more members of a board and the 2 head of a department to which the board is administratively 3 assigned may be conducted in private without limitation; 4 provided that the discussion is limited to matters specified in 5 section 26—35. 6 (h)A member of a board may provide,by memorandum or other 7 means of transmittal,other members of the board any government 8 record for which disclosure is required by section 92F—12; 9 provided that: 10 (1)No commitment relating to a vote on the matter is made 11 or sought by the board member in the means of transmittal;and 12 (2)No additional discussion other than a statement 13 describing the government record and the issue related to the 14 government record shall be included in the transmittal. 15 [-+~-)-](i)Communications,interactions,discussions, 16 investigations,and presentations described in this section are 17 not meetings for purposes of this part.” 18 SECTION 2.Statutory material to be repealed is bracketed 19 and stricken.New statutory material is underscored. 20 SECTION 3.This Act shall take effect upon its approval. HSAC-O1 Page6 B I\Ic~. INTRODUCED BY: HSAC-O1 .B.NO. A BILL FORAN ACT RELATING TO IMPORTANT AGRICULTURAL LANDS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1.Article XI,section 3 of the Hawaii State 2 Constitution establishes the State’s duty to “conserve and 3 protect agricultural lands,promote diversified agriculture, 4 increase agricultural self—sufficiency and assure the 5 availability of agriculturally suitable lands”and provides 6 protections for lands identified as important agricultural 7 lands.In service of this duty,the legislature enacted Act 8 183,Session Laws of Hawaii 2005,which was codified in part III 9 of chapter 205,Hawaii Revised Statutes. 10 Act 183 directed each county to work with government and 11 community stakeholders to,within sixty months of receipt of 12 State funds for the purpose,identify and map potential 13 important agricultural lands within its jurisdiction and make 14 recommendations to the State Land Use Commission for the 15 designation of these lands as important agricultural 16 lands.Once designated,agricultural operations on important 17 agricultural lands are eligible for a variety of State and B i\Ic~.___________ 1 county assistance and incentive programs including grants and 2 other funding assistance,tax incentives,favorable 3 infrastructure and permit requirements,and farm and business 4 education assistance.The legislature finds that,to date,most 5 counties have not received State funds to assist with their 6 identification and mapping duties under Act 103. 7 The purpose of this Act is to implement Act 183 in S accordance with the State’s constitutional duty to protect 9 important agricultural lands by providing funds to the counties 10 for the identification and mapping of important agricultural 11 lands. 12 SECTION 2.There is appropriated out of the general 13 revenues of the State of Hawaii the sum of $250,000,or so much 14 thereof as may be necessary for fiscal year 2017—2018,and the 15 same sum or so much thereof as may be necessary for fiscal year 16 2018—2019,for grants—in--aid to the counties for the 17 identification and mapping of important agricultural lands 18 pursuant to section 205—47,Hawaii Revised Statutes,to be 19 allocated as follows: 20 (1)$62,500 to the County of Hawaii; 21 (2)$62,500 to the City and County of Honolulu; 22 (3)$62,500 to the County of Kauai;and H SAC—02 Page3 .B.F\jc~. 1 (4)$62,500 to the County of Maui. 2 The sums appropriated shall be expended by the department 3 of business,economic development,and tourism for the purposes 4 of this Act. 5 SECTION 3.This Act shall take effect on July 1,2017. INTRODUCED BY:_______ HSAC-02 .B.NO. A BILL FORAN ACT RELATING TO COLLECTIVE BARGAINING. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1.The purpose of this Act is to allow a 2 representative of each county council to be present as a non— 3 voting participant in negotiations with bargaining units if the 4 relevant county has employees in the particular bargaining unit. 5 County councils have the duty to appropriate funds for 6 their counties.Councils’knowledge of bargaining unit 7 negotiations and associated costs is essential to enable 8 effective financial planning for the counties. 9 SECTION 2.Section 89—6,Hawaii Revised Statutes,is 10 amended by amending subsection (d)to read as follows: 11 “(d)For the purpose of negotiating a collective 12 bargaining agreement,the public employer of an appropriate 13 bargaining unit shall mean the governor together with the 14 following employers: 15 (1)For bargaining units (1),(2),(3),(4),(9),(10), 16 (13),and (14),the governor shall have six votes and 17 the mayors,the chief justice,and the Hawaii health 18 systems corporation board shall each have one vote if Page2 B r\ic~.___________ 1 they have employees in the particular bargaining unit; 2 and one representative from each county council shall 3 be allowed to attend as a non—voting participant 4 during negotiations if their county has employees in 5 the particular bargaining unit; 6 (2)For bargaining units (11)and (12),the governor shall 7 have [four votccjone vote and the mayors shall each 8 have one vote;and one representative from each county 9 council shall be allowed to attend as a non—voting 10 participant during negotiations if their county has 11 employees in the particular bargaining unit; 12 (3)For bargaining units (5)and (6),the governor shall 13 have three votes,the board of education shall have 14 two votes,and the superintendent of education shall 15 have one vote;and 16 (4)For bargaining units (7)and (8),the governor shall 17 have three votes,the board of regents of the 18 University of Hawaii shall have two votes,and the 19 president of the University of Hawaii shall have one 20 vote. 21 (5)The mayor or the mayor’s representative shall provide 22 timely updates relating to bargaining unit HSAC—03 Page3 B r~ic. 1 negotiations to the county councils in an executive 2 meeting. 3 Any decision to be reached by the applicable employer group 4 shall be on the basis of simple majority,except when a 5 bargaining unit includes county employees from more than one 6 county.In that case,the simple majority shall include at 7 least one county.” 8 SECTION 3.Statutory material to be deleted is bracketed 9 and in strikethrough.New statutory material is underscored. 10 SECTION 4.This Act shall take effect upon its approval. INTRODUCED BY:______ HSAC-03 THIRTIETH LEGISLATURE,2017 STATE OF HAWAII .B.NO. A BILL FOR AN ACT RELATING TO TORT LIABILITY. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAI ‘I: 1 SECTION 1.Act 170,Session Laws of Hawai’i 2002,as 2 amended by section 4 of Act 152,Session Laws of Hawaii 2007,as 3 amended by section 2 of Act 81,Session Laws of Hawai’i 2009,as 4 amended by section 1 of Act 98,Session Laws of Hawai’i 2014,is 5 amended by amending section 5 to read as follows: 6 “SECTION 5.This Act shall take effect upon its approval. 7 [;previ€~e~that sec-tion 1 of this Ac-t.shall be repealed en June ~30,2017].” 9 SECTION 2.Statutory material to be repealed is 10 bracketed and stricken. 11 SECTION 3.This Act shall take effect upon its 12 approval. 13 14 INTRODUCED 15 BY:________________________________ C HSAC—04 .B.NO. .B.NO. A BILL FOR AN ACT RELATING TO UNADJUDICATED TRAFFIC FINES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1.Chapter 291C,Hawai’i Revised Statutes,is amended by adding a new part to be appropriately designated and to read as follows: “PART .TRANSMITTAL OF TRAFFIC FINES AND FORFEITURES TO COUNTIES §291C-A Definitions.As used in this part,unless the context clearly requires otherwise: “Traffic infractions”means the same as defined under section 291D—2. “Uncontested traffic infraction”means a traffic infraction for which the person noticed under section 291D—5 does not contest the infraction.A person “does not contest”an infraction if,in accordance with section 291D—6(b)(1),the person admits the commission of the infraction without requesting a hearing to explain mitigating circumstances and pays or remits bail forfeiture by mail,via the Internet,or by telephone within thirty days. HSAC-05 B I\]c~.___________ §291C-B Transmittal of fines and forfeitures from July 1, 2017.(a)Beginning July 1,2017,the director of finance shall transmit to each county,not more than thirty days after the end of each fiscal quarter,all the fines and forfeitures collected for uncontested traffic infractions committed in that county that are in excess of amounts required by the State to pay the administrative costs of the traffic violations bureau. The fines and forfeitures shall be directed to the county in which the citations were issued.This section shall not apply to: (1)Fines and forfeitures for violations that occur on state oft—street parking facilities,parks,airports, and harbors that are subject to enforcement by the State;and (2)Fines and forfeitures that are required by law to be paid into a special,revolving,or trust fund. No county shall be entitled to any portion of the fines and forfeitures described in this subsection.” SECTION 2.Section 291C—171,Hawai’i Revised Statutes, is amended by amending subsection (a)to read as follows: “(a)All fines and forfeitures collected upon conviction or upon the forfeiture of bail of any person charged with a HSAC-05 Page3 B I\Ic~. violation of any section or provision of the state traffic laws and all assessments collected relating to the commission of traffic infractions shall be paid to the director of finance of the State.The judiciary shall identify those fines paid for uncontested traffic infractions as defined in section 291C-A. The disposition of fines and forfeitures paid to the director of finance shall be subject to sections 2910—B.” SECTION 3.In codifying the new sections added by section 1 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 2.New statutory material is underscored. SECTION 3.This Act shall take effect on July 1,2017. INTRODUCED BY: HSAC-05 .B.NO. A BILL FOR AN ACT MAKING AN APPROPRIATION FOR EMERGENCY MEDICAL SERVICES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1.The purpose of this Act is to appropriate funds to the department of health for the purchase of an ambulance vehicle and the operational costs for one ambulance unit, including equipment,supplies,and personnel costs for state—certified emergency medical services personnel,for a twenty—four—hour,seven—days—a-week,ambulance unit for the county of Kaua’i. SECTION 2.There is appropriated out of the general revenues of the State of Hawaii the sum of $or so much thereof as may be necessary for fiscal year 2017 —2018 for the purchase of an ambulance vehicle and the operational costs for one ambulance unit,including equipment,supplies,and personnel costs for state—certified emergency medical services personnel, for a twenty—four—hour,seven—days—a—week,ambulance units for the counties of Kaua’i and Hawai’i. The sum appropriated shall be expended by the department of health for the purposes of this Act. HSAC-06 Page2 B NO._______ SECTION 3.This Act shall take effect on July 1,2017. INTRODUCED BY: HSAC—0 6 .B.NO. A BILL FOR AN ACT RELATING TO UNMANNED AERIAL VEHICLES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1.The legislature finds that unmanned aerial 2 vehicles are becoming increasingly popular in Hawaii and the 3 rest of the United States.Hobbyists use them for recreational 4 purposes,and businesses and government entities use them in a 5 plethora of ways that benefit society and individual residents. 6 The federal government is regulating the use of these devices as 7 the airways see more usage by all stakeholders. 8 The purpose of this Act is to establish unmanned aerial 9 vehicle laws and rules that complement federal rules and 10 regulation. 11 SECTION 2.The Hawaii Revised Statutes is amended by 12 adding a new chapter to be appropriately designated and to read 13 as follows: 14 “CHAPTER 15 UNMANNED AERIAL VEHICI~ES 16 §-1 Definitions.As used in this chapter: 17 HSAC-07 Page2 .B.I\IO.___________ 1 “Department”means the department of commerce and consumer 2 affairs. 3 “Director”means the director of commerce and consumer 4 affairs. 5 “Operator”means any person using or operating an unmanned 6 aerial vehicle. 7 “Personal information”means all information that: 8 (1)Describes,locates,or indexes information or data 9 relating to a person,including but not limited to 10 physical location,social security number,driver’s 11 license number,government—issued identification 12 number,student identification number,real or 13 personal property holdings identified in tax filings, 14 educational records,financial transactions,medical 15 history,ancestry,religious affiliation,political 16 ideology or affiliation,criminal record,or 17 employment history; 18 (2)Affords a basis for inferring personal 19 characteristics,such as facial recognition and other 20 biometric identification technology,fingerprints, 21 voiceprints,or photographs;or 22 HSAC—07 B I\J~. 1 (3)Indicates a person’s membership in or association with 2 an organization,participation in an activity,or 3 admission or entrance to an institution or facility. 4 “Unmanned aerial vehicle”means a powered vehicle that does 5 not carry a human operator,uses aerodynamic forces to provide 6 vehicle lift,can fly autonomously or be piloted remotely,and 7 can be expendable or recoverable.“Unmanned aerial vehicle” 8 does not include a remote controlled airplane. 9 §-2 Powers and duties of the director.In addition to 10 any other powers and duties authorized by law,the director 11 shall: 12 (1)Adopt,amend,or repeal rules as the director deems 13 proper to fully effectuate this chapter; 14 (2)Impose a fine on an operator for any cause prescribed 15 by this chapter,or for any violation of this chapter 16 or any rule adopted pursuant to this chapter;and 17 (3)Investigate the use of any unmanned aerial vehicle is reported to be in violation of this chapter or any 19 rule adopted pursuant to this chapter. 20 §-3 Prohibited acts;penalty.(a)No person shall 21 operate an unmanned aerial vehicle: HSAC—07 Page4 B 1\ic~.___________ 1 (1)In violation of chapter 263 or any applicable federal 2 law and Federal Aviation Administration regulations 3 relating to the operation of unmanned aerial vehicles; 4 (2).Within five miles of an airport; 5 (3)Within five hundred feet of an emergency response 6 vehicle or first responder during an emergency,~unless 7 the unmanned aerial vehicle is operated pursuant to 8 section —4(b); 9 (4)To intentionally collect personal information or 10 intentionally publish or distribute personal 11 information acquired through the operation of an 12 unmanned aerial vehicle without express written 13 consent from the person whose personal information is 14 acquired; 15 (5)At an altitude higher than four hundred feet above 16 ground level; 17 (6)Outside the visual line of sight of the operator.The 18 operator shall use natural vision to maintain at all 19 times an unobstructed view of the unmanned aerial 20 vehicle without the use of vision enhancing devices, 21 including but not limited to binoculars,night vision HSAC-07 Page5 B i\i~~. 1 goggles,powered vision magnifying devices,or similar 2 devices; 3 (7)In a manner that interferes with,or fails to give way 4 to,any manned aircraft; 5 (8)Whenever weather conditions impair the operator’s 6 ability to safely operate the unmanned aerial vehicle; 7 (9)Over any open air assembly unit,school,school yard, 8 hospital,place of worship,prison,or police station 9 without the property owner’s written consent and 10 subject to any restrictions that the property owner 11 may impose on the operation of the unmanned aerial 12 vehicle; 13 (10)(A)Within five hundred feet of any water intake 14 facility or any electric generating facility, 15 substation,or control center; 16 (B)Within one hundred feet of any electric 17 transmission facility; 18 (C)Within twenty—five feet or any electric 19 distribution facility or of any overhead cable, 20 wire,conveyor,or similar equipment for the 21 transmission of sounds or signals,or of heat, 22 HSAC-07 Page6 B.N~.________ 1 light,or power,or of data,upon or along any 2 public way, 3 without the facility or equipment owner’s written 4 consent and subject to any restrictions that the 5 facility or equipment owner may impose on the 6 operation of the unmanned aerial vehicle; 7 (11)While under the influence of any intoxicating liquor 8 as defined in section 281—1,intoxicating compound as 9 defined in section 712—1240,or other drug,or any 10 combination thereof; 11 (12)With the intent to use the unmanned aerial vehicle or 12 anything attached to it to cause harm to persons or 13 property; 14 (13)In a reckless or careless manner;or 15 (14)In violation of any federal or state law. 16 (b)All data and personal information collected through 17 the use of an unmanned aerial vehicle shall not be use or 18 repurposed for any purpose other than the original purpose for 19 which the data or personal information was collected. 20 HSAC—07 .B.r~ic~. 1 (c)Any person who operates an unmanned aerial vehicle in 2 violation of this chapter shall pay a civil penalty of 3 $for each separate offense. 4 (d)All penalties collected by the department shall be 5 deposited into the compliance resolution fund under section 6 26—9(o)for the purpose of enforcing this chapter. 7 §—4 Prohibited uses by law enforcement agencies; 8 exceptions.(a)No law enforcement agency shall use an 9 unmanned aerial vehicle to gather evidence or other information 10 pertaining to criminal conduct or conduct in violation of a 11 statute,ordinance,or administrative rule without first 12 obtaining a warrant. 13 (b)Nbtwithstanding subsection (a)and in addition to the 14 authorized activities under section -5,a law enforcement or 15 public safety agency may deploy an unmanned aerial vehicle for 16 the following purposes: 17 (1)When there is a reasonable belief that an emergency 18 situation exists,whether or not the situation 19 involves criminal activity,and the use of an unmanned 20 aerial vehicle is necessary to prevent immediate 21 HSAC-07 Page8 B i\jO.___________ 1 danger of death or serious physical injury to any 2 person; 3 (2)To conduct a search and rescue operation where the use 4 of an unmanned aerial vehicle is determined to be 5 necessary to alleviate an immediate danger to any 6 person; 7 (3)To respond to a hostage situation;or 8 (4)To conduct training exercises related to any purposes 9 in this subsection. 10 §-5 Public agency exceptions.Nothing in this chapter 11 shall prohibit the use of unmanned aerial vehicles by a public 12 agency: 13 (1)To conduct environmental or disaster response, 14 including but not limited to disaster relief,victim 15 recovery or search and rescue,and monitoring, 16 inspection,underwater repair,or structural damage 17 assessments; 18 (2)To dispose of a suspected or actual explosive device; 19 (3)To monitor plant or animal populations; 20 (4)To conduct atmospheric testing or monitoring; 21 (5)For farming and agricultural uses; 22 HSAC—07 B F\ic~.___________ 1 (6)To review traffic congestion and conditions; 2 (7)To survey or inspect public lands and property;or 3 (8)To survey the ocean and coastline. 4 §-6 Weapons;prohibited.In no case shall a person or 5 public agency equip an unmanned aerial vehicle with a weapon or 6 or deploy an unmanned aerial vehicle that is equipped with a 7 weapon. 8 For the purpose of this section,“weapon”means any device 9 designed to harm or incapacitate a human being by use of a 10 projectile,explosive,biological or chemical agent, 11 electricity,visible or invisible directed energy,radiation,or 12 any other means. 13 §-7 Civil cause of action;remedies.(a)An 14 individual shall have a civil cause of action against any person 15 that collects,publishes,or distributes the individual’s 16 personal information in violation of this chapter. 17 (b)In any civil action brought under this section,if the 18 court finds a violation,the court may award: 19 (1)Injunctive relief; 20 (2)Equitable relief; 21 (3)Compensatory damages; 22 HSAC—07 .B.i\ic~. 1 (4)Punitive damages,except as prohibited by section 2 662—2; 3 (5)Costs of the action;and 4 (6)Reasonable attorney’s fees.” 5 SECTION 3.Chapter 711,Hawaii Revised Statutes,is 6 amended by adding a new section to be appropriately designated 7 and to read as follows: 8 “711-Unmanned aerial vehicles;prohibited acts.(1) 9 It shall be unlawful for any person to intentionally,knowingly, 10 or recklessly use an unmanned aerial vehicle to record or 11 photograph a person in a private place without the consent of 12 the person for the purpose of spying on the person or invading 13 the privacy of another person with an unlawful purpose,under 14 circumstances in which a reasonable person in the private place 15 would not expect to be observed. 16 (2)Violation of this section is a misdemeanor.In 17 addition to any penalties the court may impose,the court may 18 order the destruction of any recording or photograph made in 19 violation of this section.” 20 SECTION 4.Section 711—1100,Hawaii Revised Statues,is 21 amended as follows: HSAC-07 Pagell s r~Jc~. 1 1.By adding a new definition to be appropriately inserted 2 and to read: 3 “Unmanned aerial vehicle”means a powered vehicle that 4 does not carry a human operator,uses aerodynamic forces to 5 provide vehicle lift,can fly autonomously or be piloted 6 remotely,and can be expendable or recoverable.” 7 2.By the definition of “record”to read: 8 “Record”,for the purposes of section 711—1110.9 [&i~], 9 711—1111,and 711—,means to videotape,film,photograph,or 10 archive electronically or digitally.” 11 SECTION 5.Section 711—1110.9,Hawaii Revised Statutes,is 12 amended by amending subsection (1)to read as follows: 13 “(1)A person commits the offense of violation of privacy 14 in the first degree if,except in the execution of a public duty 15 or as authorized by law: 16 (a)The person intentionally or knowingly installs or 17 uses,or both,in any private place,without consent 18 of the person or persons entitled to privacy therein, 19 any device,including an unmanned aerial vehicle,for 20 observing,recording,amplifying,or broadcasting 21 HSAC-07 B I\icD. 1 another person in a stage of .undress or sexual 2 activity in that place;or 3 (b)The person knowingly discloses an image or video of 4 another identifiable person either in the nude,as 5 defined in section 712—1210,or engaging in sexual 6 conduct,as defined in section 712—1210,without the 7 consent of the depicted person,with intent to harm 8 substantially the depicted person with respect to that 9 person’s health,safety,business,calling,career, 10 financial condition,reputation,or personal 11 relationships;provided that: 12 (i)This paragraph shall not apply to images or 13 videos of the depicted person made: 14 (A)When the person was voluntarily nude in 15 public or voluntarily engaging in sexual 16 conduct in public;or 17 (B)Pursuant to a voluntary commercial 18 transaction;and 19 (ii)Nothing in this paragraph shall be construed to 20 impose liability on a provider of “electronic 21 communication service”or “remote computing HSAC—07 .B.i\iO. 1 service”as those terms are defined in section 2 803—41,for an image or video disclosed through 3 the electronic communication service or remote 4 computing service by another person.” 5 SECTION 6.Section 711—1111,Hawaii Revised Statutes,is 6 amended by amending subsection (1)to read as follows: 7 “(1)A person commits the offense of violation of privacy 8 in the second degree if,except in the execution of a public 9 duty or as authorized by law,the person intentionally: 10 (a)Trespasses on property for the purpose of subjecting 11 anyone to eavesdropping or other surveillance in a 12 private place; 13 (b)Peers or peeps into a window or other opening of a 14 dwelling or other structure adapted for sojourn or 15 overnight accommodations for the purpose of spying on 16 the occupant thereof or invading the privacy of 17 another person with a lewd or unlawful purpose,under 18 circumstances in which a reasonable person in the 19 dwelling or other structure would not expect to be 20 observed; 21 HSAC-07 .B.F\Jc~.___________ 1 (c)Trespasses on property for the sexual gratification of 2 the actor; 3 (d)Installs or uses,or both,in any private place, 4 without consent of the person or persons entitled to 5 privacy therein,any means or device,including an 6 unmanned aerial vehicle,for observing,recording, 7 amplifying,or broadcasting sounds or events in that 8 place other than another person in a stage of undress 9 or sexual activity;provided that this paragraph shall 10 not prohibit a person from making a video or audio 11 recording or taking a photograph of a law enforcement 12 officer while the officer is in the performance of the 13 officer’s duties in a public place or under 14 circumstances in which the officer has no reasonable 15 expectation of privacy and the person is not 16 interfering with the officer’s ability to maintain 17 safety and control,secure crime scenes and accident 18 sites,protect the integrity and confidentiality of 19 investigations,and protect the public safety and 20 order; 21 (e)Installs or uses outside a private place any device, 22 including an unmanned aerial vehicle,for hearing, HSAC-07 B F\ic~. 1 recording,amplifying,or broadcasting sounds 2 originating in that place which would not ordinarily 3 be audible or comprehensible outside,without the 4 consent of the person or persons entitled to privacy 5 therein; 6 (f)Covertly records or broadcasts an image of another 7 person’s intimate area underneath clothing,by use of 8 any device,including an unmanned aerial vehicle,and 9 that image is taken while that person is in a public 10 place and without that person’s consent; 11 (g)Intercepts,without the consent of the sender or 12 receiver,a message or photographic image by 13 telephone,telegraph,letter,electronic transmission, 14 or other means of communicating privately;but this 15 paragraph does not apply to: 16 (i)Overhearing of messages through a regularly 17 installed instrument on a telephone party line or 18 an extension;or 19 (ii)Interception by the telephone company,electronic 20 mail account provider,or telephone or electronic 21 mail subscriber incident to enforcement of HSAC-07 B I\Ic~.___________ 1 regulations limiting use of the facilities or 2 incident to other operation and use; 3 (h)Divulges,without the consent of the sender or the 4 receiver,the existence or contents of any message or 5 photographic image by telephone,telegraph,letter, 6 electronic transmission,or other means of 7 communicating privately,if the accused knows that the $message or photographic image was unlawfully 9 intercepted or if the accused learned of the message 10 or photographic image in the course of employment with 11 an agency engaged in transmitting it;or 12 (1)Knowingly possesses materials created under 13 circumstances prohibited in section 711—1110.9.” 14 SECTION 7.This Act does not affect rights and duties that 15 matured,penalties that were incurred,and proceedings that were 16 begun before its effective date. 17 SECTION 8.Statutory material to be repealed is bracketed 18 and stricken.New statutory material is underscored. 19 SECTION 9.This Act shall take effect upon its approval. 20 21 INTRODUCED BY:______________________________ •22 HSAC-07 .B.NO. A BILL FOR AN ACT RELATING TO COMMUNITY MEETINGS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1.Section 92—2.5,Hawaii Revised Statutes,is 2 amended to read as follows: 3 “~92-2.5 Permitted interactions of menibers.(a)Two 4 members of a board may discuss between themselves matters 5 relating to official board business to enable them to perform 6 their duties faithfully,as long as no commitment to vote is 7 made or sought and the two members do not constitute a quorum of 8 their board. 9 (b)Two or more members of a board,but less than the 10 number of members which would constitute a quorum for the board, 11 may be assigned to: 12 (1)Investigate a matter relating to the official business 13 of their board;provided that: 14 (A)The scope of the investigation and the scope of is each member’s authority are defined at a meeting of the board; HSAC-08 Page2 B I~Jc~._______ 1 (B)All resulting findings and recommendations are 2 presented to the board at a meeting of the board;and 3 (C)Deliberation and decisionmaking on the matter 4 investigated,if any,occurs only at a duly noticed meeting of 5 the board held subsequent to the meeting at which the findings 6 and recommendations of the investigation were presented to the 7 board;or 8 (2)Present,discuss,or negotiate any position which the 9 board has adopted at a meeting of the board;provided that the 10 assignment is made and the scope of each member’s authority is 11 defined at a meeting of the board prior to the presentation, 12 discussion,or negotiation. 13 (c)Discussions between two or more members of a board, 14 but less than the number of members which would constitute a 15 quorum for the board,concerning the selection of the board’s 16 officers may be conducted in private without limitation or 17 subsequent reporting. 18 (d)Board members present at a meeting that must be 19 canceled for lack of quorum or terminated pursuant to section 20 92—3.5(c)may nonetheless receive testimony and presentations on 21 items on the agenda and question the testifiers or presenters; 22 provided that: HSAC-08 Page3 B 1~4Jc~. 1 (1)Deliberation or decisionmaking on any item,for which 2 testimony or presentations are received,occurs only at a duly 3 noticed meeting of the board held subsequent to the meeting at 4 which the testimony and presentations were received; 5 (2)The members present shall create a record of the oral 6 testimony or presentations in the same manner as would be 7 required by section 92-9 for testimony or presentations heard 8 during a meeting of the board;and 9 (3)Before its deliberation or decisionmaking at a 10 subsequent meeting,the board shall: 11 (A)Provide copies of the testimony and presentations 12 received at the canceled meeting to all members of the board; 13 and 14 (B)Receive a report by the members who were present 15 at the canceled or terminated meeting about the testimony and 16 presentations received. 17 Ce)Two or more members of a board,but less than the 18 number of members which would constitute a quorum for the board, 19 may attend an informational meeting or presentation on matters 20 relating to official board business,including a meeting of 21 another entity,legislative hearing,convention,seminar,or 22 community meeting open to the public;provided that the meeting HSAC-08 Page4 B ~ 1 or presentation is not specifically and exclusively organized 2 for or directed toward members of the board.The board members 3 in attendance may participate in discussions,including 4 discussions among themselves;provided that the discussions 5 occur during and as part of the informational meeting or 6 presentation;and provided further that no commitment relating 7 to a vote on the matter is made or sought. 8 At the next duly noticed meeting of the board,the board 9 members shall report their attendance and the matters presented 10 and discussed that related to official board business at the 11 informational meeting or presentation. 12 (f)Discussions between the governor and one or more 13 members of a board may be conducted in private without 14 limitation or subsequent reporting;provided that the discussion 15 does not relate to a matter over which a board is exercising its 16 adjudicatory function. 17 (g)Discussions between two or more members of a board and 18 the head of a department to which the board is administratively 19 assigned may be conducted in private without limitation; 20 provided that the discussion is limited to matters specified in 21 section 26—35~ HSAC-08 Page5 B E\i~~. 1 (h)Communications,interactions,discussions, 2 investigations,and presentations described in this section are 3 not meetings for purposes of this part. 4 (i)Notwithstanding section 92-3.1(b)of this chapter,for 5 meetings described in subsection (e),the limitation on number 6 of attendees shall not apply to members of a county council.” 7 SECTION 2.Statutory material to be deleted is bracketed 8 and in strikethrough.New statutory material is underscored. 9 SECTION 3.This Act shall take effect upon its approval. 10 11 INTRODUCED BY:____________________________ 12 HSAC-08 .B.NO. A BILL FOR AN ACT RELATING TO IDENTIFICATION CARDS FOR PERSONS WITH DISABILITIES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1.This legislature finds that persons with 2 disabilities have the desire to indicate on their identification 3 cards,such as the State of Hawaii identification card,driver’s 4 license,or an identification card for persons with 5 disabilities,their disability. 6 Because not all disabilities are outwardly visible,the 7 disclosure of a disability on a driver’s license or S identification card can assist first responders in determining. 9 the best way to treat,assist,or communicate with the person. 10 Having a license or identification card clearly indicating 11 a person’s disability will allow the person access to certain 12 services such as special seating on public transit or at public 13 events.The “disabled”notification on the card indicates that 14 a person has a disability and does not take the place of 15 existing public service qualification procedures. HSAC-09 B i\jo. 1 To mitigate potential abuse,medical documentation is 2 required to support a person’s request for indication of a 3 disability on their idenLification card. 4 Those who choose to include information about their 5 disability on their driver’s license,State identification card, 6 and identification card for persons with disabilities may do so 7 under this Act. 8 SECTION 2.Section 286—2,Hawaii Reviáed Statutes,is 9 amended by adding new definitions to be appropriately inserted 10 and to read as follows: 11 “Disability”means any physical,mental,or neurological 12 impairment that severely restricts a person’s mobility,manual 13 dexterity,or ability to climb stairs;substantial loss of sight 14 or hearing;loss of one or more limbs or use thereof;or 15 significantly diminished reasoning capacity. 16 “Person with disabilities”means any per~son with a 17 permanent or temporary disability. 18 SECTION 3.Chapter 286,Hawaii Revised Statutes,is amended 19 by adding a new section to part VI to be appropriately 20 designated and to read as follows: 21 “~286-Driver’s license for persons with disabilities. HSAC-09 B I\iO. 1 Persons with disabilities may opt to identify their 2 disability on their driver’s license upon receipt of the 3 required documentation as stated in this section,from the 4 person requesting its inclusion.The driver’s license shall 5 display the “disabled”notation on a location designated by the 6 department.” 7 SECTION 4.Section 286—305,Hawaii Revised Statutes,is 8 amended to read as follows: 9 “~286-3O5 Contents and characteristics;form.(a)Each 10 identification card issued by the examiner of drivers shall 11 display a distinguishing number assigned to the cardholder,and 12 shall display the following inscription: 13 “STATE OF HAWAII IDENTIFICATION CARD” 14 (b)The examiner of drivers,after obtaining the 15 fingerprint of the applicant as provided in this part and after 16 obtaining the information required by or pursuant to this part, 17 shall issue to each applicant an identification card in a form 18 and with identifying information that the director deems 19 necessary and appropriate,including a notation of veteran 20 status,if desired by the applicant,on the front of the card 21 where applicable;provided that such notation shall not include 22 any designation other than the term “veteran”.As used in this HSAC-09 .B.r~ic~.___________ 1 subsection,“veteran”means any person who served in any of the 2 uniformed services of the United States and was discharged under 3 conditions other than dishonorable. 4 (c)The identification card shall not display the 5 cardholder’s social security number. 6 (d)The identification card shall be designed to prevent 7 its reproduction or alteration without ready detection. 8 (e)The identification card for individuals under twenty- 9 one years of age shall have characteristics prescribed by the 10 examiner distinguishing it from that issued to [~-j an individual 11 who is twenty—one years of age or older. 12 (f)Persons with disabilities may opt to identify their 13 disability on their identification card upon receipt of the 14 required documentation from the person requesting its inclusion. 15 The identification card shall display a notation of disability 16 status,if desired by the applicant,on the front of the card 17 where applicable;except that such notation shall not include 18 any designation other than the term “disabled.” 19 SECTION 5.Chapter 286,Hawaii Revised Statutes,is amended 20 by adding a new section to part XVI to be appropriately 21 designated and to read as follows: HSAC-09 B F\IO.___________ 1 “~286-Identification card for persons with 2 disabilities.(a)The department shall issue identification 3 cards to persons with disabilities pursuant to section 286—305. 4 (b)The identification card for persons with disabilities 5 shall include characteristics and content pursuant to section 6 286—305.On the reverse side of the identification card shall be 7 a space within which the department shall enter such disability 8 information the applicant may request. 9 (c)The department may include a notation of disability 10 status,if desired by the applicant,on the front and may print 11 the disability information on the reverse on any driver’s 12 license or identification card issued pursuant to the provisions 13 of this chapter upon receipt of the required documentation from 14 the person requesting its inclusion. 15 (d)Temporary disabilities.An identification card for 16 persons with a temporary disability shall be issued upon 17 presentation of a sworn affidavit of at least one medical doctor 18 attesting to such disability and estimating the duration of the 19 disability.Identification cards indicating temporary 20 disabilities shall be issued for periods of one year,and a 21 current affidavit of a medical doctor attesting to the HSAC-09 Page6 B 1\Ic~. 1 continuance of such disability shall be presented at each 2 request thereafter.” 3 SECTION 6.Statutory material to be repealed is bracketed 4 and stricken.New statutory material is underscored. 5 SECTION 7.This Act shall take effect on January 2,2018. INTRODUCED BY:______ HSAC—09 __.B.NO. A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 PARTI 2 SECTION 1.(a)The legislature finds that: 3 (1)Pursuant to Act 174,Session Laws of Hawaii 2014,the 4 state—county functions working group was convened to evaluate 5 the division of duties and responsibilities between the State 6 and counties relating to the provision of public services and to 7 recommend an appropriate allocation of the transient 8 accommodations tax revenues between the State and counties that 9 properly reflects the division of duties and responsibilities 10 relating to the provision of public services; 11 12 (2)Though the transient accommodations tax has evolved to 13 meet the needs and purposes of the times,its structure and 14 frequent amendment,combined with the cyclical nature of the 15 visitor industry and the tax revenues it generates,has resulted 16 in ongoing discussions among the various stakeholders,including 17 the State,the counties,the visitor industry,the Hawaii 18 tourism authority,and other recipients or potential recipients 19 of transient accommodations tax revenues; 20 21 (3)The state—county functions working group,composed of 22 state,county,and visitor industry representatives and other 23 knowledgeable and concerned citizens,and which has been aided 24 by experts,considered the legislature’s assignment for over a 25 year and delivered to the legislature its final unanimous 26 report,inclusive of analysis,findings,conclusions,and 27 recommendations; 28 29 (4)In particular,the state—county functions working 30 group found and concluded that: 31 32 (A)The application of the transient accommodations 33 tax and the allocation of its revenues should be simplified Page2 B r\ic~.___________ 1 and stabilized so as to be clear,consistent,and 2 predictable over time,in view of the need to invest in 3 tourism as a premier industry; 4 5 (B)The tourism special fund should be provided a 6 priority distribution of the transient accommodations tax 7 revenues at an assured minimum level,adjusted for 8 inflation,and regardless of overall transient 9 accommodations tax collections; 10 11 (C)After the priority distribution of the transient 12 accommodations tax revenues to the tourism special fund, 13 existing allocations to the Turtle Bay conservation 14 easement special fund,convention center enterprise special 15 fund,and special land and development fund should be 16 maintained at their current levels,with any additional 17 state funding of these efforts made out of state general 18 funds by separate appropriation; 19 20 (D)Based on a review of state and county functions, 21 including tourism expenditures,an appropriate allocation 22 of the remaining transient accommodations tax revenues is 23 fifty—five percent to the state general fund and forty—five 24 percent to the counties;and 25 26 (E)There should be no fixed dollar amounts,caps, 27 floors,or similar restrictions on allocations to the State 28 and counties of the remaining revenues;instead,both the 29 State and the county allocations should increase or 30 decrease proportionately with increasing or decreasing 31 transient accommodations tax revenues;and 32 33 (5)The state—county functions working group 34 recommendations reflect a fair,balanced,and reasonable 35 compromise of competing needs for scarce resources and provide a 36 sound policy base for the further administration of the 37 transient accommodations tax and its revenues. 38 39 (b)The purpose of this Act is to: 40 41 (1)Provide a fair,consistent,and predictable priority 42 allocation of transient accommodations tax revenues,of an 43 assured minimum amount,to the tourism special fund; 44 MCC-lO B E\ic~. 1 (2)t’4aintain allocation of transient accommodations tax 2 revenues to existing obligations at present levels; 3 4 (3)Provide a fair,consistent,and predictable allocation 5 of the balance of the transient accommodations tax revenues 6 between the State and the counties;and 7 8 (4)Provide flexibility to the tourism special fund, 9 State,and counties in the utilization of their respective 10 allocations. 11 12 PART II 13 14 SECTION 2.Section 237D—6.5,Hawaii Revised Statutes,is 15 amended by amending subsection (b)to read as follows: 16 17 “(b)Revenues collected under this chapter shall be 18 distributed in the following priority,with the excess revenues 19 to be deposited into the general fund: 20 21 [(1)$1,500,000 shall be allocated to the Turtle Bay 22 eenserva~en easement special fund beginning July 1,2015,for 23 the reimbursement to the state general fund of debt service en 24 reimbursable general obligation bonds,including ongoing 25 e~~penses related to the issuanee of the bonds,the proceeds of 26 which were used to acquire the censervatien easement and ether 27 real property interests in Turtle Bay,Oahu,fer the protection, 28 preservation,and enhancement of natural resources important to 29 the State,until the bonds are fully amortiEcd;] 30 31 (1)$82,000,000 shall be allocated to the tourism special 32 fund established under section 201B—11;provided that,beginning 33 July 1,2017,and in each fiscal year thereafter,the dollar 34 amount of revenues allocated to the tourism special fund under 35 this paragraph shall be adjusted by an amount equal to the 36 dollar amount multiplied by the percentage,if any,by which the 37 Honolulu region consumer price index for all urban consumers 38 (CPI—U),or a successor index,as calculated by the United 39 States Department of Labor,for the preceding calendar year 40 exceeds the consumer price index for the calendar year 2016; 41 provided further that: 42 43 (A)Of the revenues allocated to the tourism special 44 fund: MCC-l0 Page 4 .B.NO. Ci)$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 percent 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;and (B)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 2OlB—10,in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; (2)$26,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8; [(3)$82,000,000 shall bc allocatcd to the tourism special fund cstablished under scction 201B-11;providcd that: (A)Beginning on July 1,2012,and ending on Juno 30, 2015,$2,000,000 shall bc expended from thc tourism special fund for dcvelopmcnt and implementation of initiatives to ta]cc advantage of cxpandcd visa programs and increased travel opportunities for intcrnational visitors to Hawaii; 34 (B)Of thc $82,000,000 allocatcd: 35 36 (i)$1,000,000 shall be allocated for the 37 operation of a Hawaiian center and the museum of Hawaiian music 38 and dance at the Hawaii convention center;and 39 40 (ii)0.5 per cent of the $82,000,000 shall be 41 transferred to a sub account in the tourism special fund to 42 provide funding for a safety and security budget,in accordance 43 with the Hawaii tourism strategic plan 2005 2015;and 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 MCC-10 Page5 .B.No. 1 (C)Of the revenues remaining in the touri-sm special 2 fund after revenues have been deposited as provided in this 3 paragraph and except for any sum authorized by the legislature 4 for expenditure from revenues subjec-t to this paragraph, 5 beginning July 1,2007,funds shall be deposited into the 6 tourism emergency special fund,established in sec-tien 201B-10, 7 in a manner sufficient to maintain a fund balance of $~,000,000 8 in the tourism emergency special fund;] 9 10 (3)$3,000,000 shall be allocated to the special land and 11 development fund established under section 171—19;provided that 12 the allocation shall be expended in accordance with the Hawaii 13 tourism authority strategic plan for: 14 15 (A)The protection,preservation,maintenance,and 16 enhancement of natural resources,including beaches, 17 important to the visitor industry; 18 19 (B)Planning,construction,and repair of facilities; 20 and 21 22 (C)Operation and maintenance costs of public lands, 23 including beaches,connected with enhancing the visitor 24 experience; 25 26 (4)$1,500,000 shall be allocated to the Turtle Bay 27 conservation easement special fund beginning July 1,2017,for 28 the reimbursement to the state general fund of debt service on 29 reimbursable general obligation bonds,including ongoing 30 expenses related to the issuance of the bonds,the proceeds of 31 which were used to acquire the conservation easement and other 32 real property interests in Turtle Bay,Oahu,for the protection, 33 preservation,and enhancement of natural resources important to 34 the State,until the bonds are fully amortized;and 35 36 [4](5)[$103,000,000 for fiscal year 2014 2015, 37 $103,000,000 for fiscal year 201S 201~,$103,000,000 for fiscal 38 year 20l~,2017,and $93,000,000 for each fiscal year 39 thereafter]Of the remaining revenues collected under this 40 chapter,forty—five percent shall be allocated to the counties 41 and shall be distributed as follows:Kauai county shall receive 42 14.5 per cent,Hawaii county shall receive 18.6 per cent,city 43 and county of Honolulu shall receive 44.1 per cent,and Maui 44 county shall receive 22.8 per cent;provided that commencing MCC-10 21 22 23 24 25 26 27 28 33 34 35 36 37 38 39 40 41 42 ____.B.[%Ic~. 1 with fiscal year 2018—2019,a sum that represents the difference 2 between a county public employer’s annual required contribution 3 for the separate trust fund established under section 87A—42 and 4 the amount of the county public employer’s contributions into 5 that trust fund shall be retained by the state director of 6 finance and deposited to the credit of the county public 7 employer’s annual required contribution into that trust fund in 8 each fiscal year,as provided in section 87A—42,if the 9 respective county fails to remit the total amount of the 10 county’s required annual contributions,as required under 11 section 87A—43[;and 12 13 [(5)$3,000,000 ohall bc allocatcd to thc opccial land and 14 dcvclopmcnt fund cotabliohcd undcr ocction 171-19;providcd that 15 .thc allocation ohall bc cxpcndcd in acöordancc with thc Hawaii 16 touri3m authority otratcgic plan for: 17 18 (A)Thc protcction,prcocrvation,maintcnancc,and 19 cnhanccmcnt of natural rcoourccc,including boachec,important 20 tc~th~vinitôr inciur~trv: (B)Planning,conotruction,and rcpair of facilitico; ~4 (C)Opcration arid maintcnancc cooto of public lando, including bcachco,conncctcd with cnhancing thc vicitor cxpcricncc.] 29 All transient accommodations taxes shall be paid into the 30 state treasury each month within ten days after collection and 31 shall be kept by the state director of finance in special 32 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.” PART III ~ SECTION 3.Section 87A—42,Hawaii Revised Statutes,is amended by amending subsection (d)to read as follows: 43 “(d)In any fiscal year subsequent to the 2017—2018 fiscal 44 year in which a county public employer’s contributions into the J~4CC-10 B I\J~~. 1 fund are less than the amount of the annual required 2 contribution,the amount that represents the excess of the 3 annual required contribution over the county public employer’s 4 contributions shall be deposited into the fund from a portion of 5 all transient accommodations tax revenues collected by the 6 department of taxation under section f237D-6.5(b)(1).]237D— 7 6.5(b)(5).The director of finance shall deduct the amount 8 necessary to meet the county public employer’s annual required 9 contribution from the revenues derived under section [237D- 10 6.5(b)(4)]237D-6.5(b)(5)and transfer the amount to the board 11 for deposit into the appropriate account of the separate trust 12 fund.” 13 14 SECTION 4.Section 171—19,Hawaii Revised Statutes,is 15 amended by amending subsection (a)to read as follows: 16 17 “(a)There is created in the department a special fund to 18 be designated as the “special land and development fund”. 19 Subject to the Hawaiian Homes Commission Act of 1920,as 20 amended,and section 5(f)of the Admission Act of 1959,all 21 proceeds of sale of public lands,including interest on deferred 22 payments;all moneys collected under section 171-58 for mineral 23 and water rights;all rents from leases,licenses,and permits 24 derived from public lands;all moneys collected from lessees of 25 public lands within industrial parks;all fees,fines,and other 26 administrative charges collected under this chapter and chapter 27 183C;a portion of the highway fuel tax collected under chapter 28 243;all moneys collected by the department for the commercial 29 use of public trails and trail accesses under the jurisdiction 30 of the department;transient accommodations tax revenues 31 collected pursuant to section [237D 6.5(b)(5);]237D—6.5(b)(3); 32 and private contributions for the management,maintenance,and 33 development of trails and accesses shall be set apart in the 34 fund and shall be used only as authorized by the legislature for 35 the following purposes: 36 37 (1)To reimburse the general fund of the State for 38 advances made that are required to be reimbursed from the 39 proceeds derived from sales,leases,licenses,or permits of 40 public lands; 41 42 (2)For the planning,development,management,operations, 43 or maintenance of all lands and improvements under the control 44 and management of the board pursuant to title 12,including but MCC-l0 Page8 s Nc~.___________ 1 not limited to permanent or temporary staff positions who may be 2 appointed without regard to chapter 76;provided that transient 3 accommodations tax revenues allocated to the fund shall be 4 expended as provided in section [237D 6.5(b)(5);]237D— 5 6.5(b)(3); 6 7 (3)To repurchase any land,including improvements,in the 8 exercise by the board of any right of repurchase specifically 9 reserved in any patent,deed,lease,or other documents or as 10 provided by law; 11 12 (4)For the payment of all appraisal fees;provided that 13 all fees reimbursed to the board shall be deposited in the fund; 14 15 (5)For the payment of publication notices as required 16 under this chapter;provided that all or a portion of the 17 expenditures may be charged to the purchaser or lessee of public 18 lands or any interest therein under rules adopted by the board; 19 20 (6)For the management,maintenance,and development of 21 trails and trail accesses under the jurisdiction of the 22 department; 23 24 (7)For the payment to private land developers who have 25 contracted with the board for development of public lands under 26 section 171—60; 27 28 (8)For the payment of debt service on revenue bonds 29 issued by the department,and the establishment of debt service 30 and other reserves deemed necessary by the board; 31 32 (9)To reimburse the general fund for debt service on 33 general obligation bonds issued to finance departmental 34 projects,where the bonds are designated to be reimbursed from 35 the special land anddevelopment fund; 36 37 (10)For the protection,planning,management,and 38 regulation of water resources under chapter 174C;and 39 40 (11)For other purposes of this chapter.” 41 MCC-10 Page9 B F\ic~. I PART IV 2 SECTION 5.Statutory material to be repealed is bracketed 3 and stricken.New statutory material is underscored. 4 5 SECTION 6.This Act shall take effect on July 1,2017. 6 7 8 INTRODUCED BY:______________________________ 9 MCC-l0