HOUSE OF REPRESENTATIVES

H.B. NO.

2458

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to TOURISM.

 

 

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

 


SECTION 1. The legislature finds that the visitor industry is the largest industry in the State of Hawaii, with visitor spending at $15.91 billion in 2016. Effective and collaborative planning is necessary at the state and county levels to address concerns of the visitor industry in each county, capitalize on opportunities, and maintain a healthy and sustainable visitor industry.

The legislature finds that the Hawaii tourism authority is tasked with long-range statewide strategic planning for the visitor industry and has previously engaged with the counties to develop ten-year county tourism strategic plans. These plans, which were published in 2006, need to be updated. The Hawaii tourism authority should support the counties in updating visitor industry plans and efforts to implement their plans.

The purpose of this Act is to strengthen the visitor industry in the State by:

(1) Requiring the Hawaii tourism authority to annually update the state tourism strategic plan every five years;

(2) Requiring the Hawaii tourism authority to fund county visitor industry strategic plans and priority projects, as appropriate;

(3) Transferring a portion of transient accommodations tax revenues distributed to the Hawaii tourism special fund to a sub account for county visitor industry strategic plans and implementation of county visitor industry strategic plans and priorities; and

(4) Establishing a planner position in the authority to administer and serve as a resource to counties in updating and implementing each county visitor industry strategic plan.

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

"201B-   Visitor industry strategic plan; counties. (a) The long-range strategic plan for tourism in Hawaii required by section 201B-7(b)(1) shall be a single, comprehensive document that shall be updated every five years.

(b) The authority shall fund county visitor industry strategic plans that shall be updated every three years. County visitor industry strategic plans shall:

(1) Involve collaboration with visitor industry stakeholders, including visitor bureaus, state and county agencies, the private sector, and community organizations;

(2) Address the visitor industry's strengths, weaknesses, opportunities, and threats; and

(3) Establish goals, objectives, and strategic priority projects and programs.

(c) The authority shall fund and implement visitor industry plan updates, consider funding projects under the authority's jurisdiction, and advocate before state and federal agencies as appropriate.

(d) The authority shall submit a report summarizing county plan priorities, progress on meeting plan priorities, and recommendations, including any proposed legislation, to the legislature no later than thirty days prior to the convening of each regular session."

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) $26,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;

(3) [$82,000,000] $         shall be allocated to the tourism special fund established under section 201B-11; provided that:

(A) Beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from the tourism special fund for development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii;

(B) Of the [$82,000,000] $         allocated:

(i) $1,000,000 shall be allocated for the operation of a Hawaiian center and the museum of Hawaiian music and dance at the Hawaii convention center; [and]

(ii) 0.5 per cent of the [$82,000,000] $         shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan [2005-2015]; and

(iii) $         shall be transferred to a sub-account in the tourism special fund to provide funding to update the statewide tourism strategic plan and each county visitor industry strategic plan as required by section 201B-  , and to support the implementation of the visitor industry strategic plans; and

(C) Of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds 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;

(4) $103,000,000 shall be allocated as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent; provided that commencing with fiscal year 2018-2019, a sum that represents the difference between a county public employer's annual required contribution for the separate trust fund established under section 87A-42 and the amount of the county public employer's contributions into that trust fund shall be retained by the state director of finance and deposited to the credit of the county public employer's annual required contribution into that trust fund in each fiscal year, as provided in section 87A-42, if the respective county fails to remit the total amount of the county's required annual contributions, as required under section 87A-43; and

(5) $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.

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.

As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."

SECTION 4. Section 201B-11, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Moneys in the tourism special fund shall be used by the authority for the purposes of this chapter, provided that:

(1) Not more than 3.5 per cent of this amount shall be used for administrative expenses, including $15,000 for a protocol fund to be expended at the discretion of the president and chief executive officer; [and]

(2) At least $1,000,000 shall be made available to support efforts to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors[.]; and

(3) At least $         shall be made available to update and support the implementation of county visitor industry strategic plans pursuant to section 201B-  ."

SECTION 5. There is appropriated out of the tourism special fund the sum of $         or so much thereof as may be necessary for fiscal year 2018-2019 for one full-time equivalent (1.0 FTE) permanent visitor industry planner position to administer and assist the counties in updating and implementing each county visitor industry strategic plan.

The sum appropriated shall be expended by the Hawaii tourism authority for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaii Tourism Authority; Transient Accommodations Tax; Tourism Special Fund

 

Description:

Requires the Hawaii Tourism Authority to update the statewide tourism strategic plan and to fund the update of county visitor industry strategic plans. Allocates a portion of transient accommodations tax revenues for the county plans. Establishes a planner position in the Authority to administer the development and implementation of the county plans.

 

 

 

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