STAND. COM. REP. NO. 1035-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2406

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2406, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE FINANCES,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Climate Health and Environmental Action Special Fund in the Department of Land and Natural Resources to minimize the impacts of, and respond to, climate crises;

(2) Levy an additional $25 tax on transient accommodations; and

(3) Narrow the Transient Accommodations Tax exemption for accommodations furnished at no charge or on a complimentary or gratuitous basis to accommodations for the purpose of providing emergency housing to persons displaced as a result of a state of emergency or state disaster.

Your Committee received testimony in support of this measure from the Office of the Governor; Hyperspective; Hawaiʻi Green Infrastructure Authority; Trust for Public Land; Democratic Party of Hawaiʻi; Citizens' Climate Lobby Hawaii; Kauai Climate Action Coalition; Care for ʻĀina Now Coalition; Wild Kids; Surfrider Foundation Hawaii; Kuaʻāina Ulu ʻAuamo; Hawaiʻi Land Trust; Climate Protectors Hawaii; Hawaii Reef and Ocean Coalition; Kupu; The Nature Conservancy; Ocean Preservation Society; Keiko Conservation; and numerous individuals. Your Committee received testimony in opposition to this measure from the Kohala Coast Resort Association; Grassroot Institute of Hawaii; Maui Hotel & Lodging Association; Hawaiʻi Lodging & Tourism Association; and six individuals. Your Committee received comments on this measure from the Department of Land and Natural Resources; Department of Taxation; Hawaiʻi Climate Change Mitigation and Adaption Commission; Hawaiʻi Tourism Authority; Tax Foundation of Hawaii; Starn, O'Toole, Marcus & Fisher; and Maui Chamber of Commerce.

Your Committee has amended this measure by:

(1) Changing the number of positions in the Department of Land and Natural Resources to an unspecified number; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2406, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2406, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair