THE SENATE	S.B. NO.	3289
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

Relating to TRANSPORTATION.

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

SECTION 1. Section 37-79, Hawaii Revised Statutes, is amended to read as follows:

"[[]§37-79[]] Climate change and tourism destination management; maritime purposes and uses; projects; budget [request.] requests. (a) The governor shall request, in the budget or the supplemental budget submitted to the legislature pursuant to section 37-71 or 37-72, that an amount of general funds that approximates the additional revenue generated by any increase to the transient accommodations tax rates pursuant to section 237D-2(a)(6) and (c)(4) beginning on January 1, 2026, and section 237D-2(e) beginning on July 1, 2026, [and by assessment of the transient accommodations tax on gross rental proceeds derived from cruise fares pursuant to section 237D-2(a)] be expended equally to advance specific projects to:

(1) Protect, manage, and restore the State's natural resources, including native forests, native plants and animals, aquatic resources, coastal lands, and freshwater resources;

(2) Increase the resilience of structures and infrastructure to natural and climate-related disasters, such as hurricanes and sea level rise, and perform hazard mitigation activities, such as wildfire and flood mitigation; and

(3) Improve the visitor experience, mitigate the impacts of tourism on the natural environment, ensure that the State's natural resources are maintained for future residents and visitors, and support destination management, such as park improvements and beach improvement, nourishment, and maintenance projects.

(b) The governor shall request, in the budget or the supplemental budget submitted to the legislature pursuant to section 37-71 or 37-72, that an amount of general funds that approximates the additional revenue generated by the assessment of the transient accommodations tax on gross rental proceeds derived from cruise fares pursuant to section 237D-2(a) be expended for maritime purposes and uses, including:

(1) Reducing greenhouse gas emissions and pollutants through increased shore power connectivity;

(2) Mitigating and adapting to sea level rise in the State's harbors;

(3) Increasing the resilience of maritime structures and infrastructure; and

(4) Addressing maritime environmental issues, as determined by the department of transportation."

SECTION 2. Section 237D-1, Hawaii Revised Statutes, is amended by amending the definition of "cruise fare" to read as follows:

""Cruise fare" means the [total] amount paid by a transient for a cruise ship cabin on a cruise ship[, inclusive of any mandatory fees imposed by a cruise ship operator, owner, or representative thereof on a transient for the use of shipboard services, facilities, meals, and onboard entertainment, but]. "Cruise fare" does not include [optional] charges for shipboard services, facilities, meals, excursions, [and] onboard entertainment [beyond the mandatory fee amount.], transportation, and other ancillary fees."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

DOT; Governor; Transient Accommodations Tax; Cruise Ships; Cruise Fares; Budget Request; Maritime Purposes and Uses

Description:

Requires the Governor to request in the executive budget or supplemental budget that an amount of general funds that approximates the additional revenue generated by assessing the Transient Accommodations Tax on gross rental proceeds derived from cruise fares be expended for maritime purposes and uses, including addressing maritime environmental issues, as determined by the Department of Transportation, rather than be expended as part of the green fee. Amends the definition of "cruise fares" with respect to the Transient Accommodations Tax.

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