HB1517

SECTION 1. The legislature finds that tourism marketing and tourism impact expenses should be paid for by tourists, rather than the residents of this State. Accordingly, the purpose of this Act is to reinstate the tourism special fund, and accommodate revenues from the transient accommodations tax.

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

"§201B- Tourism special fund. (a) There is established in the state treasury the tourism special fund, into which shall be deposited:

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

(2) Appropriations by the legislature to the tourism special fund; and

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

(b) Moneys in the tourism special fund may be:

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

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

(1) Not more than 3.5 per cent of this amount shall be used for administrative expenses, including $ for a protocol fund to be expended at the discretion of the president and chief executive officer; and

(2) At least $ shall be made available to support efforts to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors."

SECTION 3. Chapter 201B, Hawaii Revised Statutes, is amended by amending the title of part II to read as follows:

"Part II. TOURISM SPECIAL FUND; EXEMPTIONS; REPORTS"

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

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

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

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

(3) [~~An allocation~~] Beginning July 1, 2025, $90,000,000 shall be allocated to the tourism special fund established under section 201B- ; provided that of the $90,000,000 allocated:

(A) $1,000,000 shall be allocated for the operation of a Hawaiian center and the museum of Hawaiian music and dance;

(B) 0.5 per cent of the $90,000,000 shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; and

(C) Of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, funds shall be deposited into the tourism emergency special fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; 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

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

As used in this subsection, "fiscal year" means the twelve‑month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1517
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII