STAND. COM. REP. NO. 927

Honolulu, Hawaii

RE: S.B. No. 666

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 666, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENVIRONMENTAL PROTECTION,"

begs leave to report as follows:

The purpose and intent of this measure is to establish planning and funding mechanisms to protect the State's unique environmental assets:

Specifically, the measure:

(1) Establishes the conservation workforce special fund to finance workforce programs and services that promote certain environmental goals;

(2) Requires the Department of Land and Natural resources and the Office of Planning to convene a Conservation Advisory Committee to develop criteria and a framework to ensure proper management of the conservation workforce special fund; and

(3) Establishes a ten-year pilot visitor green fee surcharge for each guest of a transient accommodation, effective July 1, 2021.

Your Committee received written comments in support of this measure from Ulupono Initiative, Zero Waste Oahu, Conservation International, Kanu Hawaii, Surfrider Foundation Hawaii, Hawaii Alliance for Community-Based Economic Development, Sustainable Coastlines Hawaii, Hawaii Reef and Ocean Coalition, Hawaii Alliance for Progressive Action, Wastewater Alternatives and Innovations, Young Progressives Demanding Action, Hawaii Youth Climate Coalition, National Tropical Botanical Garden, Imua Alliance, Hawaii Government Employees Association, Kupu, Kua Aina Ulu Auamo, The Trust for Public Land, and nine individuals.

Your Committee received written comments in opposition to this measure from Maui Chamber of Commerce, Kohala Coast Resort Association, Fairmont Orchid, and Hawaii Lodging and Tourism Association.

Your Committee received written comments on this measure from the Department of Land and Natural Resources, Department of Budget and Finance, Department of Taxation, Office of Planning, Hawaii Tourism Authority, Tax Foundation of Hawaii, Climate Protectors Hawaii, Grassroot Institute of Hawaii, and two individuals.

Your Committee finds that each year, the State's reefs, oceans, beaches, and forests benefit residents and visitors alike, and are vital to the tourism industry. These natural resources provide billions of dollars in value to the state economy and form an important part of residents' cultural identity.

Your Committee also finds that the tourism industry has been disproportionately impacted due to the coronavirus disease 2019 (COVID-19) pandemic, and that the State needs to take action to restore the vibrancy of the tourism sector. However, steps must be taken to ensure sustainability, which may occur through comprehensive funding for green job growth that contributes to the economic and environmental well-being of the State.

Your Committee has amended this measure by:

(1) Deleting language establishing of the Conservation Advisory Committee;

(2) Deleting language making the assessment and collection of the $20 green fee surcharge contingent upon the total number of visitor arrivals reaching a threshold level of five million visitors or more during the preceding calendar year, based on statistics from the Hawaii Tourism Authority;

(3) Changing its effective date to January 1, 2022, and its repeal date to December 31, 2031; and

(4) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 666, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 666, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair