SB 986: RELATED TO TOURISM.

A BILL FOR AN ACT

RELATED TO TOURISM.

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

     SECTION 1.  Section 201B-9, Hawaii Revised Statutes, is amended to read as follows:

     "§201B-9  Tourism emergency.  (a)  If the board determines that the occurrence of a [world conflict,] terrorist threat, [national or global economic crisis,] natural disaster, outbreak of disease, or other catastrophic event adversely affects Hawaii's tourism industry [by resulting in a substantial interruption in the commerce of the State and adversely affecting the welfare of its people], the board shall submit a request to the governor to declare that a tourism emergency exists.

     (b)  Upon declaration by the governor that a tourism emergency exists pursuant to subsection (a), the authority shall develop and implement measures to respond to the tourism emergency, including providing assistance to tourists during the emergency; provided that any tourism emergency response measure implemented pursuant to this subsection shall not include any provision that would adversely affect the organized labor force in tourism-related industries.  [With respect to a national or global economic crisis only, in addition to the governor's declaration of the existence of a tourism emergency, no action in response to the tourism emergency declaration may be taken by the authority without the governor's express approval.]"

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

     (4)  $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 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Hawaii Tourism Authority; Governor; Tourism Emergency; Tourism Emergency Special Fund; Transient Accommodations Tax Revenues

Description:

Amends the types of occurrences for which the Hawaii Tourism Authority Board of Directors may request the Governor to declare a tourism emergency.  Reduces the minimum balance to be maintained in the Tourism Emergency Special Fund through an allocation of transient accommodations tax revenues.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

related to tourism.

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

     SECTION 1.  Section 201B-9, Hawaii Revised Statutes, is amended to read as follows:

     "§201B-9  Tourism emergency.  (a)  If the board determines that the occurrence of a [world conflict,] terrorist threat, [national or global economic crisis,] natural disaster, outbreak of disease, or other catastrophic event adversely affects Hawaii's tourism industry [by resulting in a substantial interruption in the commerce of the State and adversely affecting the welfare of its people], the board shall submit a request to the governor to declare that a tourism emergency exists.

     (b)  Upon declaration by the governor that a tourism emergency exists pursuant to subsection (a), the authority shall develop and implement measures to respond to the tourism emergency, including providing assistance to tourists during the emergency; provided that any tourism emergency response measure implemented pursuant to this subsection shall not include any provision that would adversely affect the organized labor force in tourism-related industries.  [With respect to a national or global economic crisis only, in addition to the governor's declaration of the existence of a tourism emergency, no action in response to the tourism emergency declaration may be taken by the authority without the governor's express approval.]"

     SECTION 2.  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)  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] $3,000,000 in the tourism emergency special fund; and

     (4)  $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 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Hawaii Tourism Authority; Governor; Tourism Emergency; Tourism Emergency Special Fund; Transient Accommodations Tax Revenues

Description:

Amends the types of occurrences for which the Hawaii Tourism Authority Board of Directors may request the Governor to declare a tourism emergency.  Reduces the minimum balance to be maintained in the Tourism Emergency Special Fund through an allocation of transient accommodations tax revenues.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 391

Honolulu, Hawaii

RE:    S.B. No. 986

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Economic Development and Tourism, to which was referred S.B. No. 986 entitled:

"A BILL FOR AN ACT RELATED TO TOURISM,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Amend the types of occurrences for which the Hawaii Tourism Authority Board of Directors may request the Governor to declare a tourism emergency; and

     (2)  Reduce the minimum balance to be maintained in the Tourism Emergency Special Fund through an allocation of Transient Accommodations Tax revenues.

     Your Committee received comments on this measure from the Hawaiʻi Tourism Authority, Tax Foundation of Hawaii, and Maui Chamber of Commerce.

     Your Committee finds that the Tourism Emergency Special Fund was established in 2007, to be administered by the Hawaii Tourism Authority.  By reducing the minimum balance required to exist within the Special Fund and amending the types of occurrences for which the Authority can request an emergency be declared, this measure will free up funding for other tourism initiatives.

     Your Committee notes the suggestion from the Tax Foundation of Hawaii that all types of emergency funds be consolidated into the existing Emergency and Budget Reserve Fund to enable efficient use of the funds in the event an emergency does arise.  Your Committee finds that this issue raises concerns that merit further consideration and respectfully requests that subsequent Committees to which this measure is referred examine this matter.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 986, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 986, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Tourism,