THE SENATE S.B. NO. 1395 THIRTY-THIRD LEGISLATURE, 2025 S.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO STATE FUNDS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
THE SENATE S.B. NO. 1395
THIRTY-THIRD LEGISLATURE, 2025 S.D. 1
STATE OF HAWAII
THE SENATE
S.B. NO.
1395
THIRTY-THIRD LEGISLATURE, 2025
S.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO STATE FUNDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii is experiencing a climate emergency. Climate change impacts are felt statewide and threaten the future of the State's economy, sustainability, environment, security, culture, and way of life. Successful mitigation of and adaptation to climate change requires comprehensive action to address its detrimental impacts. The legislature finds that Hawaii needs to invest in efforts immediately to reduce climate change impacts and limit current and future costs of climate change. The anticipated extent of the impact of climate change is such that the State needs to take comprehensive and coordinated mitigation efforts as soon as possible. The purpose of this Act is to address the impacts of climate change on the State and mitigate further impacts by: (1) Establishing the climate mitigation and resiliency special fund; (2) Allocating the interest earned on balances within the emergency and budget reserve fund to the special fund; (3) Allocating a portion of the revenues from the transient accommodations tax to the special fund; and (4) Appropriating funds out of the special fund. SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows: "CHAPTER CLIMATE MITIGATION AND RESILIENCY SPECIAL FUND § -1 Establishment. 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 thereunder; (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 the revenues from the transient accommodations tax established by chapter 237D; and (7) Interest earned from moneys in the fund. § -2 Uses. 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 projects authorized in this section." 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] pursuant to section 201B-8; (3) An allocation shall be deposited into the tourism emergency special fund, established [in] pursuant to 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] pursuant to 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[.]; and (5) $ shall be allocated to the climate mitigation and resiliency special fund established under section -1. 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. Section 328L-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) All interest earned from moneys in the emergency and budget reserve fund shall be credited to the [emergency and budget reserve fund.] climate mitigation and resiliency special fund established pursuant to section -1." SECTION 5. 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 sums appropriated shall be expended by the department of defense for the purposes of this Act. SECTION 6. 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 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 8. This Act shall take effect on July 1, 2050.
SECTION 1. The legislature finds that Hawaii is experiencing a climate emergency. Climate change impacts are felt statewide and threaten the future of the State's economy, sustainability, environment, security, culture, and way of life. Successful mitigation of and adaptation to climate change requires comprehensive action to address its detrimental impacts.
The legislature finds that Hawaii needs to invest in efforts immediately to reduce climate change impacts and limit current and future costs of climate change. The anticipated extent of the impact of climate change is such that the State needs to take comprehensive and coordinated mitigation efforts as soon as possible.
The purpose of this Act is to address the impacts of climate change on the State and mitigate further impacts by:
(1) Establishing the climate mitigation and resiliency special fund;
(2) Allocating the interest earned on balances within the emergency and budget reserve fund to the special fund;
(3) Allocating a portion of the revenues from the transient accommodations tax to the special fund; and
(4) Appropriating funds out of the special fund.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"CHAPTER
CLIMATE MITIGATION AND RESILIENCY SPECIAL FUND
§ -1 Establishment. 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 thereunder;
(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 the revenues from the transient accommodations tax established by chapter 237D; and
(7) Interest earned from moneys in the fund.
§ -2 Uses. 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 projects authorized in this section."
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] pursuant to section 201B-8;
(3) An allocation shall be deposited into the tourism emergency special fund, established [in] pursuant to 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] pursuant to 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[.]; and
(5) $ shall be allocated to the climate mitigation and resiliency special fund established under section -1.
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. Section 328L-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) All interest earned from moneys in the emergency and budget reserve fund shall be credited to the [emergency and budget reserve fund.] climate mitigation and resiliency special fund established pursuant to section -1."
SECTION 5. 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 sums appropriated shall be expended by the department of defense for the purposes of this Act.
SECTION 6. 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 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2050.
Report Title: Department of Defense; Climate Mitigation and Resiliency Special Fund; Emergency and Budget Reserve Fund; Transient Accommodations Tax; Appropriations Description: Establishes the Climate Mitigation and Resiliency Special Fund. Requires the allocation of all earned interest from the Emergency and Budget Reserve Fund to the newly established special fund. Requires a portion of the revenues from the Transient Accommodations Tax to be allocated to the newly established special fund. Appropriates funds. Effective 7/1/2050. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
Department of Defense; Climate Mitigation and Resiliency Special Fund; Emergency and Budget Reserve Fund; Transient Accommodations Tax; Appropriations
Description:
Establishes the Climate Mitigation and Resiliency Special Fund. Requires the allocation of all earned interest from the Emergency and Budget Reserve Fund to the newly established special fund. Requires a portion of the revenues from the Transient Accommodations Tax to be allocated to the newly established special fund. Appropriates funds. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.