HB1950

SECTION 1. The legislature finds that it is vitally important to dedicate a set percentage of revenue derived from the transient accommodations tax to state-led marketing, branding, and tourism management. In doing so, the State ensures that its marketing, branding, and tourism-management efforts are scaled to the success of tourism while also reserving resources to help the industry weather downturns. When the visitor industry thrives, the State invests more into protecting the Hawaii brand. Conversely, when the visitor industry slows, the State has guaranteed resources to fight for market share. The State must be equipped with the necessary tools to compete effectively on the world stage to protect the jobs, tax revenues, and economic strength on which the people of Hawaii depend.

The legislature further finds that Hawaii's economy remains uniquely dependent on a healthy and vibrant visitor industry. For the 1,400,000 residents of the State, tourism is not merely a sector, it is a lifeline. More than 200,000 residents directly derive their livelihoods from this industry, and thousands more rely on the secondary economic activity it generates.

The legislature also finds that unlike unmanaged growth, state-led marketing would allow Hawaii to curate its visitor profile, focusing on those who respect the State's culture and environment and who contribute more per capita to local businesses.

Furthermore, the legislature finds that history and economic modeling have demonstrated that state-led marketing dollars are not "costs" but investments with a measurable return. Every dollar spent on strategic marketing and branding returns significantly more to the State through general excise tax and transient accommodations tax collections than the initial investment, thus creating a self-sustaining cycle of revenue for the general fund.

Therefore, the purpose of this Act is to establish the state-led marketing and branding special fund and require a portion of all transient accommodations tax revenues that would otherwise be deposited into the general fund to be deposited into the special fund, to be used for state-led marketing, branding, and tourism management.

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

"§201- State-led marketing and branding special fund; annual comprehensive plan. (a) There is created within the state treasury a state-led marketing and branding special fund, into which shall be deposited a portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5.

(b) To ensure transparency and alignment with state goals, the department shall annually develop and submit to the legislature a comprehensive marketing, branding, and tourism management plan to guide its state-led marketing, branding, and tourism management efforts over the subsequent fiscal year. The plan shall be subject to approval by the legislature by concurrent resolution before the beginning of the fiscal year to which the plan applies.

(c) Moneys in the special fund shall be used solely for state-led marketing, branding, and tourism management, to be conducted by the department in accordance with the comprehensive marketing, branding, and tourism management plan approved by the legislature for that fiscal year. No moneys shall be appropriated out of the state-led marketing and branding special fund for expenditure in any fiscal year unless the legislature has approved a comprehensive marketing, branding, and tourism management plan for that fiscal year."

SECTION 3. 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 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 for:

(A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches;

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

(D) Any related debt service and financing agreement costs[.]; and

(5) Fifteen per cent shall be deposited into the state-led marketing and branding special fund established by section 201- .

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

SECTION 5. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1950
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII