| 47 | | - | SECTION 1. The legislature finds that Hawaii is experiencing a climate emergency. The effects of climate change, such as rising temperatures, prolonged droughts, and increasingly destructive and deadly weather events, are felt across the island chain. These impacts threaten not only our vibrant ecosystems but, as actors within these ecosystems, the people of Hawaii as well. To ensure the health, safety, and well-being of Hawaii's lands, waters, and people, successful mitigation of and adaptation to climate change are imperative. The legislature further finds that given the scale and impact of the climate emergency, the State must invest in bold actions to prepare for, mitigate, and adapt to climate change, including resiliency to intensifying natural disasters. The legislature further finds that economic development, in particular, must consider climate change. Tourism, infrastructure, and community development are all predicated upon Hawaii's land and natural resources. Resiliency to and mitigation of climate change must remain at the forefront of any economic development or revitalization project. The legislature further finds that Hawaii needs to invest in efforts to reduce climate change impacts now to limit current and future costs of climate change. The anticipated extent of the impact of climate change is such that state government needs to take comprehensive and coordinated mitigation efforts as soon as possible. The purpose of this Act is to increase the transient accommodations tax and allocate a portion of the tax to the general fund for projects that address climate change impacts and advance economic development and revitalization. SECTION 2. Section 237D-2, Hawaii Revised Statutes, is amended to read as follows: "§237D-2 Imposition and rates. (a) There is levied and shall be assessed and collected each month a tax of: (1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994; (2) Six per cent for the period beginning on July 1, 1994, to December 31, 1998; (3) 7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009; (4) 8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010; [and] (5) 9.25 per cent for the period beginning on July 1, 2010, [and thereafter;] to December 31, 2025; and (6) 11 per cent for the period beginning on January 1, 2026, and thereafter; on the gross rental or gross rental proceeds derived from furnishing transient accommodations. (b) Every transient accommodations broker, travel agency, and tour packager who arranges transient accommodations at noncommissioned negotiated contract rates and every operator or other taxpayer who receives gross rental proceeds shall pay to the State the tax imposed by subsection (a), as provided in this chapter. (c) There is levied and shall be assessed and collected each month, on the occupant of a resort time share vacation unit, a transient accommodations tax of: (1) 7.25 per cent on the fair market rental value until December 31, 2015; (2) 8.25 per cent on the fair market rental value for the period beginning on January 1, 2016, to December 31, 2016; and (3) 9.25 per cent on the fair market rental value for the period beginning on January 1, 2017, [and thereafter.] to December 31, 2025; and (4) 11 per cent on the fair market rental value for the period beginning on January 1, 2026, and thereafter. (d) Every plan manager shall be liable for and pay to the State the transient accommodations tax imposed by subsection (c) as provided in this chapter. Every resort time share vacation plan shall be represented by a plan manager who shall be subject to this chapter. (e) Notwithstanding the tax rates established in subsections (a)(5) and (6) and (c)(3)[,] and (4), the tax rates levied, assessed, and collected pursuant to subsections (a) and (c) shall be 10.25 per cent for the period beginning on January 1, 2018, to December 31, 2025, and 12 per cent for the period beginning on January 1, 2026, to December 31, 2030; provided that: (1) The tax revenues levied, assessed, and collected pursuant to this subsection that are in excess of the revenues realized from the levy, assessment, and collection of tax at the [9.25 per cent rate] rates established in subsections (a)(5) and (6) and (c)(3) and (4) shall be deposited quarterly into the mass transit special fund established under section 248-2.7; and (2) If a court of competent jurisdiction determines that the amount of county surcharge on state tax revenues deducted and withheld by the State, pursuant to section 248-2.6, violates statutory or constitutional law and, as a result, awards moneys to a county with a population greater than five hundred thousand, then an amount equal to the monetary award shall be deducted and withheld from the tax revenues deposited under paragraph (1) into the mass transit special fund, and those funds shall be a general fund realization of the State. The remaining tax revenues levied, assessed, and collected at the [9.25 per cent tax rate pursuant to] rates established in subsections (a) and (c) shall be deposited into the general fund in accordance with section 237D-6.5(b)." 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; 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 (C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience[.]; (5) 7.3 per cent of the total revenue collected pursuant to section 237D-2 shall be allocated to the general fund for projects addressing climate change impacts, including projects that mitigate, adapt to, or increase resiliency against climate change; provided that funding may be used for consultant, personnel, and administrative costs required to develop and implement these projects; and (6) 7.3 per cent of the total revenue collected pursuant to section 237D-2 shall be allocated to the general fund for projects advancing economic development and revitalization, including projects that advance infrastructure improvements within tourism or resort districts and tourism marketing. 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, 3000. |
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| 47 | + | SECTION 1. The legislature finds that Hawaii is experiencing a climate emergency. The effects of climate change, such as rising temperatures, prolonged droughts, and increasingly destructive and deadly weather events, are felt across the island chain. These impacts threaten not only our vibrant ecosystems but, as actors within these ecosystems, the people of Hawaii as well. To ensure the health, safety, and well-being of Hawaii's lands, waters, and people, successful mitigation of and adaptation to climate change are imperative. The legislature further finds that given the scale and impact of the climate emergency, the State must invest in bold actions to prepare for, mitigate, and adapt to climate change, including resiliency to intensifying natural disasters. A coordinated approach is necessary, and the department of defense, charged with protecting the safety and welfare of the people of Hawaii and the State's lead for hazard mitigation and disaster readiness, is prepared to assume this responsibility, in coordination with the departments of business, economic development, and tourism; land and natural resources; and transportation, as well as the community, to provide for the safety, security, and well-being of Hawaii's places and people. The legislature further finds that economic development, in particular, must consider climate change. Tourism, infrastructure, and community development are all predicated upon Hawaii's land and natural resources. Resiliency to and mitigation of climate change must remain at the forefront of any economic development or revitalization project. The legislature further finds that Hawaii needs to invest in efforts to reduce climate change impacts now to limit current and future costs of climate change. The anticipated extent of the impact of climate change is such that state government needs to take comprehensive and coordinated mitigation efforts as soon as possible. The purpose of this Act is to: (1) Authorize the department of defense to fund projects that strengthen the State's resiliency against climate change; (2) Require the department of defense to convene a selection committee to review and recommend projects for climate mitigation and resiliency special fund allocation; (3) Establish the climate mitigation and resiliency special fund; (4) Support resilient economic development and revitalization throughout the State by establishing the economic development and revitalization special fund; (5) Increase the transient accommodations tax and allocate a portion of the tax to the two newly established special funds; and (6) Appropriate funds into and out of the special funds. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "CHAPTER RESILIENCY § -1 Resiliency projects. The department of defense may fund projects that strengthen the State's resiliency, including projects that mitigate, adapt to, or increase resiliency against climate change. § -2 Resiliency projects; selection committee. The department of defense shall convene a selection committee to review and recommend projects to receive an allocation of moneys from the climate mitigation and resiliency special fund. The following members shall comprise the committee: (1) The adjutant general; (2) The director of business, economic development, and tourism; (3) The director of finance; (4) The chairperson of the board of land and natural resources; (5) The director of transportation; (6) An at-large member nominated by the president of the senate; and (7) An at-large member nominated by the speaker of the house or representatives; provided that the two at-large members shall each be invited to serve and be appointed by the governor, without the advice and consent of the senate, from a list of three nominees submitted for each position by the president of the senate or speaker of the house of representatives. § -3 Climate mitigation and resiliency special fund; established. (a) There is established in the state treasury the climate mitigation and resiliency special fund, to be administered by the department of defense, into which shall be deposited: (1) Appropriations made by the legislature to the fund; (2) Fees collected under this chapter or any rule adopted pursuant to this chapter; (3) Grants provided by governmental agencies or any other source; (4) Donations made by private individuals or organizations for deposit into the fund; (5) Interest earned from moneys in the emergency and budget reserve fund established in section 328L-3; (6) A portion of revenues from the transient accommodations tax, as provided by section 237D-6.5; and (7) Interest earned from moneys in the fund. (b) Moneys in the climate mitigation and resiliency special fund shall be used to advance projects addressing climate change impacts, including projects that mitigate, adapt to, or increase resiliency against climate change. Moneys may also be used for consultant, personnel, and administrative costs required to develop and implement the aforementioned projects. § -4 Rules. The adjutant general shall adopt rules pursuant to chapter 91 necessary for the purposes of this chapter." SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§201- Economic development and revitalization special fund. (a) There is established in the state treasury the economic development and revitalization special fund, to be administered by the department, into which shall be deposited: (1) Appropriations made by the legislature to the fund; (2) Fees collected under this chapter or any rule adopted pursuant to this chapter; (3) Grants provided by governmental agencies or any other source; (4) Donations made by private individuals or organizations for deposit into the fund; (5) A portion of revenues from the transient accommodations tax, as provided by section 237D-6.5; and (6) Interest earned from moneys in the fund. (b) Moneys in the economic development and revitalization special fund shall be used for projects advancing: (1) Economic development or revitalization; (2) Infrastructure within tourism districts or resort areas; (3) Climate change mitigation, adaptation, or resiliency; and (4) Tourism marketing. (c) The department shall establish procedures for receiving and evaluating project proposals to receive an allocation of moneys from the economic development and revitalization special fund; provided that: (1) The Hawaii tourism authority, office of planning and sustainable development, and department of land and natural resources shall each review any project proposal submitted for funding and submit a recommendation for funding to the department; (2) The department shall review any project proposal submitted for funding as well as the corresponding recommendations for funding submitted to the department pursuant to paragraph (1) and make a recommendation for funding to the governor; and (3) All funding allocations are subject to the governor's final approval. (d) The department shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session on the sources of moneys deposited into the economic development and revitalization special fund and expenditures of moneys from the special fund." SECTION 4. Section 237D-2, Hawaii Revised Statutes, is amended to read as follows: "§237D-2 Imposition and rates. (a) There is levied and shall be assessed and collected each month a tax of: (1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994; (2) Six per cent for the period beginning on July 1, 1994, to December 31, 1998; (3) 7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009; (4) 8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010; [and] (5) 9.25 per cent for the period beginning on July 1, 2010, [and thereafter;] to December 31, 2025; and (6) 11 per cent for the period beginning on January 1, 2026, and thereafter; on the gross rental or gross rental proceeds derived from furnishing transient accommodations. (b) Every transient accommodations broker, travel agency, and tour packager who arranges transient accommodations at noncommissioned negotiated contract rates and every operator or other taxpayer who receives gross rental proceeds shall pay to the State the tax imposed by subsection (a), as provided in this chapter. (c) There is levied and shall be assessed and collected each month, on the occupant of a resort time share vacation unit, a transient accommodations tax of: (1) 7.25 per cent on the fair market rental value until December 31, 2015; (2) 8.25 per cent on the fair market rental value for the period beginning on January 1, 2016, to December 31, 2016; and (3) 9.25 per cent on the fair market rental value for the period beginning on January 1, 2017, [and thereafter.] to December 31, 2025; and (4) 11 per cent on the fair market rental value for the period beginning on January 1, 2026, and thereafter. (d) Every plan manager shall be liable for and pay to the State the transient accommodations tax imposed by subsection (c) as provided in this chapter. Every resort time share vacation plan shall be represented by a plan manager who shall be subject to this chapter. (e) Notwithstanding the tax rates established in subsections (a)(5) and (6) and (c)(3)[,] and (4), the tax rates levied, assessed, and collected pursuant to subsections (a) and (c) shall be 10.25 per cent for the period beginning on January 1, 2018, to December 31, 2025, and 12 per cent for the period beginning on January 1, 2026, to December 31, 2030; provided that: (1) The tax revenues levied, assessed, and collected pursuant to this subsection that are in excess of the revenues realized from the levy, assessment, and collection of tax at the [9.25 per cent rate] rates established in subsections (a)(5) and (6) and (c)(3) and (4) shall be deposited quarterly into the mass transit special fund established under section 248-2.7; and (2) If a court of competent jurisdiction determines that the amount of county surcharge on state tax revenues deducted and withheld by the State, pursuant to section 248-2.6, violates statutory or constitutional law and, as a result, awards moneys to a county with a population greater than five hundred thousand, then an amount equal to the monetary award shall be deducted and withheld from the tax revenues deposited under paragraph (1) into the mass transit special fund, and those funds shall be a general fund realization of the State. The remaining tax revenues levied, assessed, and collected at the [9.25 per cent tax rate pursuant to] rates established in subsections (a) and (c) shall be deposited into the general fund in accordance with section 237D-6.5(b)." SECTION 5. 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; 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 (C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience[.]; (5) 7.3 per cent of the total revenue collected pursuant to section 237D-2 shall be allocated to the climate mitigation and resiliency special fund, established under section -1; and (6) 7.3 per cent of the total revenue collected pursuant to section 237D-2 shall be allocated to the economic development and revitalization special fund, established under 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 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the climate mitigation and resiliency special fund. SECTION 7. There is appropriated out of the climate mitigation and resiliency special fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 to advance projects addressing climate change impacts. The sum appropriated shall be expended by the department of defense for the purposes of this Act. SECTION 8. There is appropriated out of the climate mitigation and resiliency special fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to advance projects addressing climate change impacts. The sum appropriated shall be expended by the department of defense for the purposes of this Act. SECTION 9. There is appropriated out of the economic development and revitalization special fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to advance resilient economic development and revitalization projects. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act. SECTION 10. The appropriations made by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2028, shall lapse into the fund from which appropriated as of that date. Any unissued balance of any authorization made by this Act as of the close of business on June 30, 2028, shall lapse. SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 12. This Act shall take effect on July 1, 3000. |
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