HB 1944: Destination Stewardship; Corporation for the Stewardship of Hawaii Tourism; Nonprofit Organization; Hawaii Tourism Authority; Repeal

HOUSE OF REPRESENTATIVES	H.B. NO.	1944
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to tourism.

 

 

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

 

PART I

     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII DESTINATION STEWARDSHIP

     §   -1  Definitions.  As used in this chapter, unless the context otherwise requires:

     "Agency" means any agency, department, authority, board, commission, the university of Hawaii, or any other unit of the State or a county.

     "Authority" means the Hawaii tourism authority established pursuant to section 201B-2.

     "Board" means the board of directors of the authority, and any successor thereto.

     "Convention center facility" or "convention center" means any combination of land, buildings, and improvements thereon, acquired or developed by the State, and includes exhibition halls, meeting rooms, a plenary session hall, and support space that reflect a Hawaii sense of place; any other structure or facility required or useful for the operation of a convention center, including commercial, office, community service, parking, garage, and other supporting service structures; and all necessary, useful, and related equipment, furnishings, and appurtenances.

     "Corporation for the stewardship of Hawaii tourism" or "corporation" means the nonprofit organization designated as the official destination stewardship organization for Hawaii.

     "County" means the city and county of Honolulu, county of Hawaii, county of Kauai, or county of Maui.

     "Destination stewardship" means a collaborative and coordinated process among public, private, nonprofit, and community stakeholders to manage the various elements of a visitor economy to:

     (1)  Support Hawaii's economic prosperity by creating, implementing, and monitoring strategies that attract targeted visitors and improve visitor experiences;

     (2)  Develop regenerative strategies to improve natural and cultural resources valued by Hawaii residents and visitors and yield benefits for communities in the State;

     (3)  Create strategies to manage visitation in ways that safeguard Hawaii parks, beaches, and natural areas; communities; cultural centers; and other assets from overcrowding and overuse;

     (4)  Yield opportunities for Hawaii residents to create and build locally based businesses and pursue rewarding careers; and

     (5)  Perpetuate the Hawaiian culture and honor the many cultures represented among the State's population.

     "Destination stewardship organization" means a tourism organization that is structured to guide a visitor economy in collaboration with public, private, nonprofit, and community stakeholders in achieving beneficial outcomes from tourism, based on the principles of destination stewardship and regenerative tourism.

     "Destination stewardship organization service agreement" or "agreement" means a written contract authorizing the destination stewardship organization to expend state funding to achieve specified deliverables on behalf of the State.

     "Hawaii brand" means the qualities and programs that collectively differentiate the Hawaii experience from other destinations.

     "Hawaii destination stewardship council" or "state council" means an appointed governing body that collaborates to oversee the strategy, policy, and finances of the statewide destination stewardship organization.

     "Incorporator" means the president and chief executive officer of the authority.

     "Island destination stewardship council" or "island council" means an appointed body of stakeholders who collaborate in development of county or island destination management action plans, prioritize actions for implementation, and participate in achieving desired outcomes.

     "Public agency" means any office, department, board, commission, bureau, division, public corporation agency, entity, or instrumentality of the federal, state, or county government.

     "Regenerative tourism" means a tourism model that:

     (1)  Is designed and carefully managed to bring net benefits to local communities, resources, culture, and residents; and

     (2)  Engages in collaborative efforts to implement innovative and sustainable plans and strategies to:

          (A)  Make net-positive contributions from visitation;

          (B)  Support and create conditions that allow communities to flourish;

          (C)  Provide visitors with genuine and meaningful experiences in Hawaii; and

          (D)  Improve Hawaii places and experiences for current and future generations for the well-being of the environment, residents, indigenous communities, and visitors.

     §   -2  Nonprofit Hawaii destination stewardship organization; establishment; board; incorporator.  (a)  Through the incorporator, the authority shall organize a nonprofit corporation, to be designated as the corporation for the stewardship of Hawaii tourism, by filing with the department of commerce and consumer affairs a certificate of incorporation.  The incorporator shall be responsible for taking all the necessary actions to organize and incorporate the corporation, which shall be considered neither an agency of the State nor a public corporation.  The corporation shall have all of the general powers of a nonprofit private corporation pursuant to chapter 414D.

     (b)  The incorporator shall state in the certificate of incorporation:

     (1)  That the corporation shall serve as the official destination stewardship organization for Hawaii and as the official representative for Hawaii tourism; and

     (2)  Any additional provisions that are necessary for the administration or management of the corporation.

     (c)  The certificate of incorporation shall further state that the initial affairs of the corporation shall be managed by the Hawaii destination stewardship council.

     (d)  The Hawaii destination stewardship council shall consist of up to twenty voting members and six ex officio, nonvoting members; provided that:

     (1)  The members shall be appointed by the governor, except as otherwise provided by this section;

     (2)  The voting members shall include:

          (A)  The elected chairs of island destination stewardship councils;

          (B)  At least eight members with direct experience and expertise in the business of accommodations, tourism-related transportation, retail, entertainment, or attractions; provided further that the governor shall appoint members from nominations submitted by statewide associations representing these industry sectors and shall strive to achieve a balance of representation from the sectors and from the four counties;

          (C)  A member representing a nonprofit organization engaged in advocacy for the environment;

          (D)  A member representing a nonprofit organization engaged in advocacy for social improvements;

          (E)  At least one member with knowledge, experience, and expertise in Hawaiian cultural practices;

          (F)  Two members of the house of representatives, to be appointed by the speaker of the house of representatives; and

          (G)  Two members of the senate, to be appointed by the president of the senate; and

     (3)  The state council shall include six ex officio members to represent state government agencies, as follows:

          (A)  The stewardship liaison in the office of the governor, or another designee of the governor;

          (B)  The chairperson of the board of agriculture and biosecurity, or the chairperson's designee;

          (C)  The director of business, economic development, and tourism, or the director's designee;

          (D)  The chairperson of the board of land and natural resources, or the chairperson's designee;

          (E)  The director of transportation, or the director's designee; and

          (F)  The executive director of the state foundation on culture and the arts, or the executive director's designee;

          provided further that ex officio members shall not vote but may contribute to policy and strategy discussions and serve on council working groups and committees.

     (e)  Quorum for the Hawaii destination stewardship council shall consist of at least one-half of members who are neither ex officio members nor legislative appointees.  A majority vote of all members present shall be necessary to conduct business.

     (f)  Members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (g)  Members appointed by the governor shall serve for four-year terms; provided that membership on the Hawaii destination stewardship council shall not exceed eight consecutive years; provided further that each member shall hold office until the member's successor is appointed and qualified.

     (h)  The voting members of the Hawaii destination stewardship council shall elect a chair and vice chair from among the membership of the state council.  No chair shall serve more than four consecutive years.

     (i)  Members who are no longer part of the entities they were named to represent shall cease to be members of the Hawaii destination stewardship council.  The vacancy shall be filled by appointment or election pursuant to this section.

     (j)  The Hawaii destination stewardship council may establish committees as it deems appropriate.

     (k)  The incorporator shall carry out other tasks required by chapter 414D that are needed to complete the organization of the corporation, including but not limited to holding the initial meeting of the island destination stewardship council, overseeing the election of the officers of the state council, and adopting the bylaws of the corporation and a corporate seal.

     §   -3  Corporation for the stewardship of Hawaii tourism; president and chief executive officer.  (a)  The corporation shall be administered by the president and chief executive officer.  The president and chief executive officer shall be:

     (1)  An individual with professional experience in the tourism industry;

     (2)  Selected and approved by a vote of the Hawaii destination stewardship council; and

     (3)  Approved by the governor.

The president and chief executive officer shall serve at the pleasure of the state council.

     (b)  The Hawaii destination stewardship council shall set the president and chief executive officer's compensation and benefits based upon industry standards for the leaders of destination organizations of similar size and budget.

     (c)  The president and chief executive officer shall:

     (1)  Hire, supervise, and direct the staff of the corporation; and

     (2)  Determine the compensation of the staff of the corporation based on industry standards for positions at destination organizations of similar size and budget.

     (d)  The president and chief executive officer and other staff of the corporation shall not be considered employees of the State and shall be exempt from all laws pertaining to state employees, except for chapter 84.

     (e)  The president and chief executive officer shall report to and receive guidance from the Hawaii destination stewardship council on matters of policy, strategy, and finance.  The president and chief executive officer shall implement the strategic plan adopted by the state council.

     (f)  The president and chief executive officer and corporation shall comply with chapter 103D for any goods and services purchased by the corporation to carry out its purposes.

     (g)  No later than twenty days before the convening of each regular session of the legislature, the president and chief executive officer shall submit to the legislature a report on the activities and budget of the corporation, including but not limited to:

     (1)  The income and expenses of the corporation;

     (2)  The fund balance of the corporation;

     (3)  A summary of the strategic tourism stewardship plan; and

     (4)  A report of the corporation's progress in achieving the goals set forth in the strategic tourism stewardship plan.

     The portions of the report that pertain to the income and expenses and fund balance of the corporation shall be audited by independent accountants retained by the corporation for this purpose.

     The corporation shall post a copy of the report on a publicly accessible part of its official website.

     §   -4  Transition; destination stewardship organization service agreement.  (a)  After the effective date of this Act, there shall be established a transition period during which the authority shall continue to direct brand development, destination management, and other responsibilities of the corporation.

     (b)  During the transition period identified in subsection (a), the corporation shall be organized, and all the necessary administrative actions shall be taken so that the corporation shall be fully operational and capable of effectively fulfilling the objectives, purpose, duties, and functions set forth in its certificate of incorporation.

     (c)  The office of the governor shall enter into and execute a destination stewardship organization service agreement with the corporation.  The agreement shall set forth a process, which shall not exceed three months, to transition responsibilities from the authority to the corporation.  The agreement shall set dates on which the transition period begins and ends.

     (d)  After the transition period ends, the corporation shall assume the principal duties of stewarding the marketing and promotion of Hawaii as a visitor destination, destination development, and all other duties carried out by the authority.

     (e)  All of the terms and conditions that govern the destination stewardship organization service agreement shall be binding and enforceable upon all of the parties to the agreement.  The corporation shall neither assume nor be held liable for any existing obligations or debts of the authority, unless the agreement expressly provides otherwise.

     (f)  On the final date of the transition period identified in subsection (a), the Hawaii destination stewardship council shall issue and deliver a certification to the president and chief executive officer of the authority.

     (g)  Once the certification is received by the president and chief executive officer of the authority, the authority shall cease to carry out its functions.  The authority shall certify the date of transfer of the delegated functions, on which date the authority shall be repealed.

     §   -5  Powers; generally.  (a)  The corporation shall collaborate in actions to build a thriving tourism economy that:

     (1)  Addresses local priorities as determined through collaboration with island destination stewardship councils;

     (2)  Creates opportunities for commerce that benefit Hawaii residents;

     (3)  Safeguards and improves the unique assets of Hawaii; and

     (4)  Perpetuates the uniqueness of the Hawaiian culture and community and the significance of Hawaiian culture and community to the quality of the visitor experience.

     (b)  The corporation shall do any and all things necessary to carry out its purposes and to exercise the powers and functions provided in this chapter.

     (c)  Except as otherwise limited by this chapter, the corporation may:

     (1)  Sue and be sued;

     (2)  Adopt a seal and alter the same at its pleasure;

     (3)  Through its president and chief executive officer, make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the corporation may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; provided further that the corporation may enter into agreements for the use of the convention center facility for a period of up to ten years;

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Through its president and chief executive officer, represent the corporation in communications with the governor and legislature;

     (6)  Through its president and chief executive officer, provide for the appointment of officers, agents, and employees, prescribing their duties and qualifications and fixing their salaries, without regard to chapters 76 and 78, if funds have been appropriated by the legislature and allotted as provided by law;

     (7)  Through its president and chief executive officer, purchase supplies, equipment, and furniture;

     (8)  Through its president and chief executive officer, allocate the space or spaces that are to be occupied by the corporation and its staff;

     (9)  Through its president and chief executive officer, engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (10)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (11)  Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source;

    (12)  Undertake any and all other activities necessary to carry out the purposes of this chapter.

     §   -6  Meetings of the Hawaii destination stewardship council.  (a)  The meetings of the Hawaii destination stewardship council shall be open to the public as provided in section 92-3, except when it is necessary for the state council to receive:

     (1)  Information that is proprietary to a particular enterprise, or the disclosure of which might be harmful to the business interests of the enterprise; or

     (2)  Information that is necessary to protect Hawaii's competitive advantage as a visitor destination; provided that information relating to marketing plans and strategies may be disclosed after the execution of the marketing plans and strategies.

     (b)  The state council may enter into an executive meeting that is closed to the public in accordance with part I of chapter 92.

     (c)  The state council shall be subject to sections 92-4 and 92-5 to enable the state council to respect the proprietary requirements of enterprises with which they have business dealings.

     §   -7  Strategic plan; strategic tourism stewardship plan; measures of effectiveness.  The corporation shall be responsible for leading development of collaborative plans, including but not limited to:

     (1)  Developing a vision and long-range strategic plan for tourism in Hawaii;

     (2)  Creating an annual strategic tourism stewardship plan to generate a healthy tourism economy, advance the Hawaii brand and destination stewardship best practices, and advance regenerative tourism; provided that the plan shall be a single, comprehensive document to be shared annually with the legislature and governor no later than twenty days prior to the convening of each regular session; and

     (3)  Developing periodic destination stewardship action plans for each county to identify and address destination stewardship objectives.

     §   -8  Destination stewardship action plans; island destination stewardship councils; objectives; execution.  (a)  To identify and address destination stewardship objectives for each county, the corporation shall lead a collaborative process with island destination stewardship councils to develop destination stewardship action plans for each county.

     (b)  Members of the island councils shall be named by agreement of the mayor and chairperson of the county council of each county.  Each island council shall include no fewer than fifteen and no more than twenty members.  Appointed members who represent organizations not named in this section may serve a four-year term and may serve no more than eight years.

     (c)  A quorum shall consist of at least fifty per cent of the island council's full membership.  The members of each island council shall elect a chairperson and vice chairperson by a majority vote of the full membership.

     (d)  The members of an island council shall include:

     (1)  Representatives of each census-designated place on the island;

     (2)  The economic development officer of the applicable county;

     (3)  The executive director of the county visitor bureau;

     (4)  The head of the chamber of commerce or equivalent;

     (5)  At least six and no more than nine representatives of the county visitor industry, including owners, managers, association leaders, or others with direct experience and expertise in managing accommodations, restaurants, retail, entertainment, or attractions;

     (6)  At least one member with knowledge, experience, and expertise in the area of Hawaiian cultural practices; and

     (7)  Local representatives of state agencies with a role in the health of the Hawaii visitor economy, including the department of land and natural resources, department of transportation, and department of agriculture and biosecurity.

     (e)  The membership of an island council also may include representatives of:

     (1)  Law enforcement or first responders;

     (2)  Educational institutions;

     (3)  The transportation sector;

     (4)  The housing sector;

     (5)  The agricultural sector; and

     (6)  Nonprofit organizations engaged in environmental, social, or cultural activities.

     (f)  Additional island councils may be designated for any county that encompasses more than one island that has a population of five thousand or more.

     (g)  Each county's destination stewardship action plan shall identify priorities for a healthy island visitor economy that creates positive visitor experiences, improves natural and cultural resources valued by island residents and visitors, mitigates overcrowding and overuse of resources, and advances regenerative strategies to create beneficial outcomes from tourism, as described by guidelines developed by the corporation and approved by the Hawaii destination stewardship council.

     (h)  On an annual basis, each island council shall identify a one-year action plan to implement priority initiatives identified in the periodic destination stewardship plan.  The island council shall use funding from an annual destination stewardship grant to implement the one-year action plan in collaboration with designated representatives of the corporation and in keeping with grant guidelines established by the corporation.

     (i)  The periodic and one-year destination stewardship action plans of each county shall be approved by a majority vote of the full membership of the applicable island council.

     (j)  Each island council, in collaboration with designated representatives of the corporation, shall prepare and approve an annual report identifying the outcomes of the annual destination stewardship action plan and describing how the island council complied with the grant guidelines.

     §   -9  Exemption of corporation from taxation by the State.  The following shall be exempt from all taxation by the State:

     (1)  All revenues and receipts derived by the corporation from any project or project agreement, or other agreement pertaining thereto; and

     (2)  Any right, title, and interest of the corporation in any project.

     §   -10  Declaration of public function, purpose, and necessity.  The powers and functions granted to and exercised by the corporation under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.  Members of the Hawaii destination stewardship council and employees of the corporation shall not be personally liable for any activity of the corporation conducted in good faith.

     §   -11  Annual report.  The corporation shall submit to the governor and legislature a complete and detailed report of its activities, expenditures, and results, including the progress of the strategic tourism stewardship plan toward achieving the corporation's strategic plan goals, no later than twenty days prior to the convening of each regular session of the legislature.  The annual report shall include the descriptions and evaluations of programs funded, together with any recommendations of the corporation."

     SECTION 2.  Section 23-76, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  This section shall apply to the following:

     (1)  Section 237-24.3(4)--Amounts received by employment benefit plans and amounts received by nonprofit organizations or offices for the administration of employee benefit plans;

     (2)  Section 237-24.3(5)--Amounts received from food coupons under the federal food stamp program or vouchers under the Special Supplemental Foods Program for Women, Infants and Children;

     (3)  Section 237-24.3(6)--Amounts received from the sale of prescription drugs or prosthetic devices;

     (4)  Section 237-24.3(8)--Amounts received as dues by unincorporated merchants associations for advertising or promotion;

     (5)  Section 237-24.3(9)--Amounts received by labor organizations from real property leases;

     (6)  Section 237-24.75(2)--Reimbursements to the Hawaii convention center operator [from the Hawaii tourism authority];

     (7)  Section 237-24.75(3)--Reimbursements to professional employer organizations from client companies for employee wages and fringe benefits; and

     (8)  Section 209E-11--Amounts received by qualified businesses in enterprise zones."

     SECTION 3.  Section 28-8.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

     (1)  By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

     (2)  By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide such representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

     (3)  By the legislative reference bureau;

     (4)  By any compilation commission that may be constituted from time to time;

     (5)  By the real estate commission for any action involving the real estate recovery fund;

     (6)  By the contractors license board for any action involving the contractors recovery fund;

     (7)  By the office of Hawaiian affairs;

     (8)  By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

     (9)  As grand jury counsel;

    (10)  By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

    (11)  By the auditor;

    (12)  By the office of ombudsman;

    (13)  By the insurance division;

    (14)  By the University of Hawaii;

    (15)  By the Kahoolawe island reserve commission;

    (16)  By the division of consumer advocacy;

    (17)  By the office of elections;

    (18)  By the campaign spending commission;

   [(19)  By the Hawaii tourism authority, as provided in section 201B-2.5;

    (20)] (19)  By the division of financial institutions;

   [(21)] (20)  By the office of information practices;

   [(22)] (21)  By the school facilities authority;

   [(23)] (22)  By the Mauna Kea stewardship and oversight authority; or

   [(24)] (23)  By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."

     SECTION 4.  Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

     (1)  Special out-of-school time instructional program fund under section 302A-1310;

     (2)  School cafeteria special funds of the department of education;

     (3)  Special funds of the University of Hawaii;

    [(4)  Convention center enterprise special fund under section 201B-8;

     (5)] (4)  Special funds established by section 206E-6;

    [(6)] (5)  Aloha Tower fund created by section 206J-17;

    [(7)] (6)  Funds of the employees' retirement system created by section 88-109;

    [(8)] (7)  Hawaii hurricane relief fund established under chapter 431P;

    [(9)] (8)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

   [(10)] (9)  Universal service fund established under section 269-42;

   [(11)] (10)  Emergency and budget reserve fund under section 328L-3;

   [(12)] (11)  Public schools special fees and charges fund under section 302A-1130;

   [(13)] (12)  Sport fish special fund under section 187A-9.5;

   [(14)] (13)  Neurotrauma special fund under section 321H-4;

   [(15)] (14)  Glass advance disposal fee established by section 342G-82;

   [(16)] (15)  Center for nursing special fund under section 304A-2163;

   [(17)] (16)  Passenger facility charge special fund established by section 261-5.5;

   [(18)] (17)  Solicitation of funds for charitable purposes special fund established by section 467B-15;

   [(19)] (18)  Land conservation fund established by section 173A-5;

   [(20)] (19)  Court interpreting services revolving fund under section 607-1.5;

   [(21)] (20)  Trauma system special fund under section 321-22.5;

   [(22)] (21)  Hawaii cancer research special fund;

   [(23)] (22)  Community health centers special fund;

   [(24)] (23)  Emergency medical services special fund;

   [(25)] (24)  Rental motor vehicle customer facility charge special fund established under section 261-5.6;

   [(26)] (25)  Shared services technology special fund under section 27-43;

   [(27)] (26)  Automated victim information and notification system special fund established under section 353-136;

   [(28)] (27)  Deposit beverage container deposit special fund under section 342G-104;

   [(29)] (28)  Hospital sustainability program special fund under section 346G-4;

   [(30)] (29)  Nursing facility sustainability program special fund under section 346F-4;

   [(31)] (30)  Hawaii 3R's school improvement fund under section 302A-1502.4;

   [(32)] (31)  After-school plus program revolving fund under section 302A-1149.5;

   [(33)] (32)  Civil monetary penalty special fund under section 321-30.2;

   [(34)] (33)  Stadium development special fund under section 109-3.5; and

   [(35)] (34)  Universal immunization purchase special fund under section 325‑133,

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State.  All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers.  To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund.  No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

     SECTION 5.  Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each special fund, except the:

     (1)  Special out-of-school time instructional program fund under section 302A-1310;

     (2)  School cafeteria special funds of the department of education;

     (3)  Special funds of the University of Hawaii;

     (4)  Special funds established by section 206E-6;

     (5)  Aloha Tower fund created by section 206J-17;

     (6)  Funds of the employees' retirement system created by section 88-109;

     (7)  Hawaii hurricane relief fund established under chapter 431P;

    [(8)  Convention center enterprise special fund established under section 201B-8;

     (9)] (8)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

   [(10)] (9)  Universal service fund established under section 269-42;

   [(11)] (10)  Emergency and budget reserve fund under section 328L-3;

   [(12)] (11)  Public schools special fees and charges fund under section 302A-1130;

   [(13)] (12)  Sport fish special fund under section 187A-9.5;

   [(14)] (13)  Neurotrauma special fund under section 321H-4;

   [(15)] (14)  Center for nursing special fund under section 304A-2163;

   [(16)] (15)  Passenger facility charge special fund established by section 261-5.5;

   [(17)] (16)  Court interpreting services revolving fund under section 607-1.5;

   [(18)] (17)  Trauma system special fund under section 321-22.5;

   [(19)] (18)  Hawaii cancer research special fund;

   [(20)] (19)  Community health centers special fund;

   [(21)] (20)  Emergency medical services special fund;

   [(22)] (21)  Rental motor vehicle customer facility charge special fund established under section 261-5.6;

   [(23)] (22)  Shared services technology special fund under section 27-43;

   [(24)] (23)  Nursing facility sustainability program special fund established pursuant to section 346F-4;

   [(25)] (24)  Automated victim information and notification system special fund established under section 353-136;

   [(26)] (25)  Hospital sustainability program special fund under section 346G-4;

   [(27)] (26)  Civil monetary penalty special fund under section 321-30.2; and

   [(28)] (27)  Stadium development special fund under section 109-3.5,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

     SECTION 6.  Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:

     "§237-24.75  Additional exemptions.  In addition to the amounts exempt under section 237-24, this chapter shall not apply to:

     (1)  Amounts received as a beverage container deposit collected under chapter 342G, part VIII;

     (2)  Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances [made pursuant to a contract with the Hawaii tourism authority under section 201B-7]; and

     (3)  Amounts received by a professional employer organization that is registered with the department of labor and industrial relations pursuant to chapter 373L, from a client company equal to amounts that are disbursed by the professional employer organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to covered employees at a client company; provided that this exemption shall not apply to amounts received by a professional employer organization after:

          (A)  Notification from the department of labor and industrial relations that the professional employer organization has not fulfilled or maintained the registration requirements under this chapter; or

          (B)  A determination by the department that the professional employer organization has failed to pay any tax withholding for covered employees or any federal or state taxes for which the professional employer organization is responsible.

          As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1."

     SECTION 7.  Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:

     (1)  $1,500,000 shall be allocated to the Turtle Bay conservation easement special fund beginning July 1, 2015, for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, the proceeds of which were used to acquire the conservation easement and other real property interests in Turtle Bay, Oahu, for the protection, preservation, and enhancement of natural resources important to the State, until the bonds are fully amortized;

    [(2)  $11,000,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;

     (3)] (2)  An allocation shall be deposited into the tourism emergency special fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; and

    [(4)] (3)  $3,000,000 shall be allocated to the special land and development fund established under section 171-19; provided that the allocation shall be expended in accordance with the Hawaii tourism authority strategic plan for:

          (A)  The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;

          (B)  Planning, construction, and repair of facilities; and

          (C)  Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.

     All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection."

     SECTION 8.  Sections 6E-18, 23-76, 46-11, and 206E-34, Hawaii Revised Statutes, are amended by substituting the words "corporation for the stewardship of Hawaii tourism", or similar term, wherever the words "Hawaii tourism authority", or similar term, appears, as the context requires.

PART II

     SECTION 9.  Chapter 201B, Hawaii Revised Statutes, is repealed.

PART III

     SECTION 10.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 11.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 12.  This Act shall take effect upon its approval; provided that part II of this Act shall take effect on the date of transfer of delegated functions from the Hawaii tourism authority to the corporation for the stewardship of Hawaii tourism pursuant to section    -4(g), Hawaii Revised Statutes.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Destination Stewardship; Corporation for the Stewardship of Hawaii Tourism; Nonprofit Organization; Hawaii Tourism Authority; Repeal

 

Description:

Establishes and designates the Corporation for the Stewardship of Hawaii Tourism, a nonprofit organization, as the official destination stewardship organization for the State.  Repeals the Hawaii Tourism Authority.

 

 

 

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