RELATING TO TOURISM.

HB19

HOUSE OF REPRESENTATIVES

H.B. NO.

19

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to tourism
.

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

PART I

����
SECTION
1.
�
The legislature finds that in October
2023, the department of business, economic development, and tourism and the
Hawaii tourism authority issued request for proposals No. 24-07, entitled "HTA
Governance Study", to "determine the ideal governance structure to be
effective in destination marketing and tourism management."

����
The
legislature further finds that the contract was awarded on December 15, 2023, to
Better Destinations, LLC, which then issued surveys, conducted interviews, and
held workshops.
�
Better Destinations, LLC,
then issued a report in June 2024 entitled "Governance with Aloha:
�
A Report and Recommendations for Guiding
Destination Stewardship of Hawai`
i
".
�
The report set forth eleven recommendations,
the third of which was to reorganize the Hawaii tourism authority as a
destination stewardship organization that is also a nonprofit organization.
�
The nonprofit structure would be similar to
the counterpart tourism organizations of California, Florida, and Puerto Rico,
which are nonprofit organizations authorized by statute and tied to government
oversight.
�
However, rather than being
tasked with marketing the destination and increasing tourism, the Hawaii
nonprofit would instead guide Hawaii's visitor economy in collaboration with
public, private, nonprofit, and community stakeholders in achieving beneficial
outcomes from tourism, based on the principles of destination stewardship and
regenerative tourism.

����
Accordingly,
t
he purpose of this Act is to implement the third recommendation of the
governance study by reorganizing the Hawaii tourism authority as a nonprofit destination
stewardship organization.

PART II

����
SECTION
2.
�
The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

h
AWAII
DESTINATION STEWARDSHIP

Part I.
�
General provisions

����
�
��
-101
�

Definitions.
�
As used in this
chapter, unless the context otherwise requires:

����
"Convention
center facility" means any combination of land, buildings, and improvements
thereon, acquired or developed by the State, and includes exhibition halls,
meeting rooms, a plenary session hall, and support space that reflect a
Hawaiian sense of place; any other structure or facility required or useful for
the operation of a convention center, including commercial, office, community
service, parking, garage, and other supporting service structures; and, all necessary,
useful, and related equipment, furnishings, and appurtenances.

����
"Corporation"
shall mean the corporation for the stewardship of Hawaii tourism established and
incorporated under section
����
-201.

����
"Destination
stewardship" means a collaborative and coordinated process among public,
private, nonprofit, and community stakeholders to manage the various elements
of a visitor economy to:

����
(1)
�
Support Hawaii's economic prosperity by
creating, implementing, and monitoring strategies that attract targeted
visitors and improve visitor experiences;

����
(2)
�
Develop regenerative strategies to improve
natural and cultural resources valued by Hawaii residents and visitors, and
yield benefits for Hawaii communities;

����
(3)
�
Create strategies to manage visitation
in ways that safeguard parks, beaches, natural areas, communities, cultural
centers, and other assets of Hawaii from overcrowding and overuse;

����
(4)
�
Yield opportunities for Hawaii
residents to create and build Hawaii-based businesses and pursue rewarding
careers; and

����
(5)
�
Perpetuate the Hawaiian culture and
honor the many cultures represented among the State's population.

����
"Destination
stewardship organization" means a tourism organization that is structured to

guide a visitor economy in collaboration with public,
private, nonprofit, and community stakeholders in achieving beneficial outcomes
from tourism, based on the principles of destination stewardship and
regenerative tourism
.

����
"Hawaii
brand" means the qualities and programs that collectively differentiate
the Hawaii experience from other destinations.

����
"Incorporator"
means the individual who was the president and chief executive officer of the
Hawaii tourism authority on the effective date of this Act or an individual
appointed by the governor without regard to section 26-34.

����
"President"
means the president and chief executive officer of the corporation for the
stewardship of Hawaii tourism appointed under section
���
-203.

����
"Regenerative
tourism" means a tourism model that:

����
(1)
�
Is designed and carefully managed to
bring net benefits to local community resources, culture, and residents; and

����
(2)
�
Engages in collaborative efforts to
implement innovative and sustainable plans and strategies to:

���������
(A)
�
Make net-positive contributions from
visitation;

���������
(B)
�
Support and create conditions that
allow communities to flourish;

���������
(C)
�
Provide visitors with genuine and
meaningful experiences in Hawaii; and

���������
(D)
�
Improve Hawaii places and experiences
for current and future generations for the well-being of the environment,
residents, indigenous communities, and visitors.

Part
II.
�
CORPORATION FOR THE
STEWARDSHIP OF HAWAII TOURISM

����
�
��
-201
�
Corporation
for the stewardship of Hawaii tourism;

incorporation.
�
(a)
�
Under section 414D-31, the incorporator shall
deliver articles of incorporation to the director of commerce and consumer
affairs for filing.

����
(b)
�
The articles of incorporation shall include
the following information:

����
(1)
�
The corporate name shall be "Corporation
for the Stewardship of Hawaii Tourism", or a similar name if a different
name is required for purposes of section 414D-61;

����
(2)
�
The corporation shall serve as the
official destination stewardship organization for Hawaii and as the official
representative for Hawaii tourism;

����
(3)
�
The initial affairs of the corporation
shall be managed by the state destination stewardship council;

����
(4)
�
Any additional information as necessary
for the administration or management of the corporation; and

����
(5)
�
Any additional information required
under section 414D-32 or any other provision of law.

����
(c)
�
The incorporator shall carry out any other
tasks necessary for the incorporation of the corporation, including:

����
(1)
�
The payment of any fees required under
chapter 414D;

����
(2)
�
Holding the initial meeting or
subsequent meetings of the state destination stewardship council;

����
(3)
�
Overseeing the election of the officers
of the state destination stewardship council; and

����
(4)
�
Adoption of the bylaws of the
corporation and a corporate seal.

����
(d)
�
The corporation shall have all of the general
powers of a private nonprofit corporation in accordance with chapter 414D.

����
(e)
�
The corporation shall not be considered an
agency of the State or a public corporation.

����
�
��
-202
�
Corporation
for the stewardship of Hawaii tourism;

purpose.
�
The purpose of the corporation shall be
to:

����
(1)
�
Collaborate in actions to build a
thriving tourism economy that addresses local priorities as determined through
collaboration with the island destination stewardship councils;

����
(2)
�
Create opportunities for commerce that
benefit Hawaii residents;

����
(3)
�
Safeguard and improve the unique assets
of Hawaii; and

����
(4)
�
Perpetuate the uniqueness of the
Hawaiian culture and community and their significance to the quality of the
visitor experience.

����
�
��
-203
�
President
and chief executive officer of the corporation for the stewardship of Hawaii
tourism.
�
(a)
�
Subject to the approval of the governor, the
state destination stewardship council shall appoint one person to serve as the
president and chief executive officer of the corporation.
�
The president shall serve at the pleasure of
the state destination stewardship council.

����
(b)
�
The state destination stewardship council
shall set the president's compensation and benefits based upon industry
standards for the leaders of destination organizations of similar size and
budget.
�
The president shall oversee,
hire, and direct the corporation staff and determine compensation based on
industry standards for positions at destination organizations of similar size
and budget.

����
(c)
�
The president and other employees of the
corporation shall not be considered state employees and shall be exempt from
state administrative requirements with the exception of state requirements for
travel and ethical conduct.

����
(d)
�
The president shall report to and receive
guidance from the state destination stewardship council on matters of policy,
strategy, and finance.

����
(e)
�
The president shall implement the long-range
strategic tourism stewardship plan and annual strategic tourism stewardship
plans developed under section
���
-205.

����
(f)
�
The corporation shall be subject to chapters
103 and 103D.

����
�
��
-204
�
Corporation
for the stewardship of Hawaii tourism; general powers.
�
(a)
�

The corporation shall do any and all things necessary to carry out its
purpose and to exercise the powers and responsibilities given in this chapter.

����
(c)

�
Except as otherwise limited by this
chapter, the corporation may:

����
(1)
�
Sue and be sued;

����
(2)
�
Have a seal and alter the same at its
pleasure;

����
(3)
�
Through its president, make and execute
contracts and all other instruments necessary or convenient for the exercise of
its powers and functions under this chapter; provided that the corporation may
enter into contracts and agreements for a period of up to five years, subject
to the availability of funds; provided further that the corporation may enter
into agreements for the use of the convention center facility for a period of
up to ten years;

����
(4)
�
Make and alter bylaws for its
organization and internal management;

����
(5)
�
Through its president, represent the
corporation in communications with the governor and the legislature;

����
(6)
�
Through its president, provide for the
appointment of officers, agents, and employees, prescribing their duties and
qualifications, and fixing their salaries, without regard to chapters 76 and
78, if funds have been appropriated by the legislature and allotted as provided
by law;

����
(7)
�
Through its president, purchase
supplies, equipment, or furniture;

����
(8)
�
Through its president, allocate the
space or spaces that are to be occupied by the corporation and appropriate
staff;

����
(9)
�
Through its president, engage the
services of consultants on a contractual basis for rendering professional and
technical assistance and advice;

���
(10)
�
Procure insurance against any loss in
connection with its property and other assets and operations in amounts and
from insurers as it deems desirable; and

���
(11)
�
Contract for or accept revenues,
compensation, proceeds, and gifts or grants in any form from any public agency
or any other source; and

���
(12)
�
Conduct any and all other activities
necessary to carry out the intent of this chapter.

����
�
��
-205
�
Vision;

long-range strategic tourism stewardship plan; annual strategic
tourism stewardship plan
.
�
(a)
�
The corporation shall be responsible for
leading the development of the following:

����
(1)
�
A vision for tourism in Hawaii;

����
(2)
�
A long-range strategic tourism
stewardship

plan; and

����
(3)
�
Annual strategic tourism stewardship
plans.

����
(b)
�
The purposes of the long-range strategic tourism
stewardship

plan and each annual strategic tourism stewardship plan
shall be to generate a healthy tourism economy, advance the Hawaii brand and
destination stewardship best practices, and advance regenerative tourism.
�
The long-range strategic tourism stewardship

plan shall establish goals consistent with the purposes of this subsection.

����
(c)
�
Each annual strategic tourism stewardship
plan shall be a single, comprehensive document to be shared annually with the
governor and legislature at least twenty days prior to the convening of each
regular legislative session.
�
Each annual
strategic tourism stewardship

plan shall establish goals consistent with
the purposes of this subsection.

����
(d)
�
To identify and address destination
stewardship objectives for each island or a particular group of islands, the
corporation shall lead a collaborative process with each island destination
stewardship council to develop:

����
(1)
�
A long-term island destination
stewardship action plan under section
���

-403;

����
(2)
�
Periodic island destination stewardship
action plans under section
���
-404; and

����
(3)
�
One-year island destination stewardship
action plans under section
���
-405.

����
(e)
�
The corporation shall post all plans on its
website.

����
�
��
-206
�

Exemption of corporation from taxation.
�
All revenues and receipts derived by the
corporation from any project, project agreement, or other agreement pertaining to
a project shall be exempt from all state taxation.
�
Any rights, titles, and interests of the
corporation in any project shall also be exempt from all state taxation.

����
�
��
-207
�
Declaration
of public function, purpose, and necessity.
�
The powers and functions granted to and
exercised by the corporation under this chapter are declared to be public and
governmental functions, exercised for a public purpose, and matters of public
necessity.
�
Employees of the corporation shall
not be responsible individually to any person for liability for any good faith
activity of the corporation.

����
�
��
-208
�

Annual report.
�
(a)
�
The corporation shall submit an annual report
to the legislature no later than twenty days prior to the convening of each
regular session.
�
Each annual report
shall contain:

����
(1)
�
A complete and detailed report of the
corporation's
�
activities, expenditures,
and results, including the progress in achieving the goals established by the strategic
tourism stewardship plan;

����
(2)
�
A report on the budget of the
corporation, including income, expenses, and the fund balances; provided that
this information shall be audited by independent certified public accountants
retained by the corporation for this purpose;

����
(3)
�
The annual strategic tourism
stewardship plan under section
���

-205(a)(3) and a report of the progress in achieving the goals established
by the previous year's annual strategic tourism stewardship plan;

����
(4)
�
Descriptions and evaluations of
programs funded;

����
(5)
�
The annual report of each island
destination stewardship council submitted to the corporation that year under
section
���
-407; and

����
(6)
�
Any recommendations made by the
corporation.

����
(b)
�
The corporation shall post all of its annual reports
on its website.

����
(c)
�
The corporation shall post all reports made
by the Hawaii tourism authority on its website.

����
�
��

-209
�
Tourism emergency.
�
(a)
�
If
the s
tate destination stewardship council
determines
that the occurrence of a world conflict, terrorist threat, national or global
economic crisis, natural disaster, outbreak of disease, or other catastrophic
event adversely affects Hawaii's tourism industry by resulting in a substantial
interruption in the commerce of the State and adversely affecting the welfare
of its people, the s
tate destination stewardship council

shall request that the governor declare that a tourism emergency exists.

����
(b)
�
Upon declaration by the governor that a
tourism emergency exists pursuant to subsection (a), the corporation shall
develop and implement measures to respond to the tourism emergency, including
providing assistance to tourists during the emergency; provided that any
tourism emergency response measure implemented pursuant to this subsection
shall not include any provision that would adversely affect the organized labor
force in tourism-related industries.
�

With respect to a national or global economic crisis only, in addition
to the governor's declaration of the existence of a tourism emergency, the
corporation shall take no action in response to the tourism emergency
declaration without the governor's express approval.

����
�
��
-210
�
Tourism emergency special fund.
�
(a)
�

There is established outside the state treasury a tourism emergency
special fund to be administered by the
s
tate destination stewardship
council, into which shall be deposited the revenues prescribed by section 237D-6.5(b)
and all investment earnings credited to the assets of the fund.

����
(b)
�
Moneys in the special fund shall be used
exclusively to provide for the development and implementation of emergency
measures to respond to any tourism emergency pursuant to section -209,
including providing emergency assistance to tourists during the tourism
emergency.

����
(c)
�
Use of the special fund, consistent with
subsection (b), shall be provided for in articles, bylaws, resolutions, or
other instruments executed by the
s
tate destination stewardship
council as administrator for the special fund.

����
�
��
-211
�

Convention center enterprise special fund.
�
(a)
�

There is established the convention center enterprise special fund, into
which shall be deposited:

����
(1)
�
A
portion of the revenues from the transient accommodations tax, as provided by
section 237D-6.5;

����
(2)
�
All
revenues or moneys derived from the operations of the convention center, to
include all revenues from the food and beverage service, all revenues from the
parking facilities and from any concession, and all revenues from the sale of
souvenirs, logo items, or any other items offered for purchase at the
convention center;

����
(3)
�
Private
contributions, interest, compensation, gross or net revenues, proceeds, or
other moneys derived from any source or for any purpose arising from the use of
the convention center facility; and

����
(4)
�
Appropriations
by the legislature for marketing the facility.

����
(b)
�

Moneys in the convention center enterprise special fund shall be used by
the corporation for the payment of expenses arising from any and all use,
operation, maintenance, alteration, improvement, or any unforeseen or unplanned
repairs of the convention center, including without limitation for the food and
beverage service and parking service provided at the convention center
facility, the sale of souvenirs, logo items, or other items, for any future
major repair, maintenance, and improvement of the convention center facility as
a commercial enterprise or as a world-class facility for conventions,
entertainment, or public events, and for marketing the facility.

����
(c)
�

Moneys in the convention center enterprise special fund may be:

����
(1)
�
Placed
in interest-bearing accounts; provided that the depository in which the money
is deposited furnishes security as provided in section 38-3; or

����
(2)
�
Otherwise
invested by the corporation until such time as the moneys may be needed;
provided that the corporation shall limit its investments to those listed in
section 36-21.

All
interest accruing from investment of the moneys shall be credited to the
convention center enterprise special fund."

PART III.
�
STATE
DESTINATION STEWARDSHIP COUNCIL

����
�
��
-301
�
State
destination stewardship council;

establishment; purpose.
�
There is established within the
department of business, economic development, and tourism for administrative
purposes the state destination stewardship council.

����
�
��
-302
�
State
destination stewardship council;

membership.
�
The state destination stewardship council shall
consist of up to twenty voting members and six ex officio, nonvoting members;
provided that:

����
(1)
�
The members under paragraph (2)(B) to
(2)(E) shall be appointed by the governor under section 26-34;

����
(2)
�
Voting members shall include:

���������
(A)
�
The elected chairs of each island
destination stewardship council;

���������
(B)
�
At least eight members having direct
experience and expertise in the business of accommodations, tourism-related
transportation, retail, entertainment, or attractions.
�
The governor shall select appointees from
nominations submitted by statewide associations representing these industry
sectors and shall strive to achieve a balance of representation from the
sectors and from the four counties;

���������
(C)
�
A member representing a nonprofit
organization engaged in advocacy for the environment;

���������
(D)
�
A member representing a nonprofit
organization engaged in advocacy for social improvements;

���������
(E)
�
At least one member shall have
knowledge, experience, and expertise in Hawaiian cultural practices;

���������
(F)
�
Two members of the senate appointed by
the president of the senate; and

���������
(G)
�
Two members of the house of representatives
appointed by the speaker of the house of representatives;

����
(3)
�
The membership shall include six ex
officio, nonvoting members representing state departments or agencies.
�
These members may contribute to policy and
strategy discussions and serve on council working groups and committees, and
shall include the following members or high-level substitutes designated by
each member:

���������
(A)
�
The stewardship liaison in the office
of the governor;

���������
(B)
�
The chairperson of the board of agriculture;

���������
(C)
�
The director of business, economic development,
and tourism;

���������
(D)
�
The chairperson of the board of land
and natural resources;

���������
(E)
�
The director of transportation; and

���������
(F)
�
The executive director of the state foundation
on culture and the arts;

����
(4)
�
A quorum shall require attendance by at
least half of the members under paragraphs (2)(A) to (2)(E).
�
A majority vote of all present shall be
necessary for actions by the council, unless specified otherwise;

����
(5)
�
Members shall serve without
compensation, but shall be reimbursed for expenses, including traveling
expenses, necessary for the performance of their duties;

����
(6)
�
Members shall elect a chair and a vice
chair from among the membership; provided that no chair shall serve more than
four years; and

����
(7)
�
Members who are no longer part of the
governing structures they were named to represent shall cease to be members of
the state destination stewardship council.
�
The vacancy shall be filled by appointment or election
as provided in this section.

����
�
��
-303
�
State
destination stewardship council; committees.
�

The state destination stewardship council may establish committees as
it deems appropriate.

����
�
��
-304
�
State
destination stewardship council; meetings.
�

The meetings of the state destination stewardship council shall be
open to the public under section 92-3; provided that the council may hold a meeting
closed to the public under section 92-4 or 92-5 to receive:

����
(1)
�
Information that is proprietary to a
particular enterprise or the disclosure of which might be harmful to the
business interests of the enterprise; or

����
(2)
�
Information that is necessary to
protect Hawaii's competitive advantage as a visitor destination; provided
further that information relating to marketing plans and strategies may be disclosed
after the execution of the marketing plans and strategies.

����
�
��
-305
�
Declaration
of public function, purpose, and necessity.
�
The powers and functions granted to and
exercised by the state destination stewardship council under this chapter are
declared to be public and governmental functions, exercised for a public
purpose, and matters of public necessity.
�

A member of the state destination stewardship council shall not be responsible
individually to any person for liability for any good faith activity of the state
destination stewardship council.

PART IV.
�

ISLAND DESTINATION STEWARDSHIP COUNCILS

����
�
��
-401
�
Island
destination stewardship councils; established.
�

(a)
�
There is established
within the department of business, economic development, and tourism for
administrative purposes four island destination stewardship councils to be
designated as:

����
(1)
�
The Kauai destination stewardship
council, to serve as the island destination stewardship council having
jurisdiction on the islands within the county of Kauai;

����
(2)
�
The Maui Nui destination stewardship
council, to serve as the island destination stewardship council having jurisdiction
on the islands within the county of Maui;

����
(3)
�
The Hawaii county destination
stewardship council, to serve as the island destination stewardship council having
jurisdiction on the islands within the county of Hawaii; and

����
(4)
�
The Oahu destination stewardship
council, to serve as the island destination stewardship council having
jurisdiction on the islands within the city and county of Honolulu.

����
(b)
�
Upon approval by the state destination
stewardship council and the governor, the president may split the jurisdiction
of any island destination stewardship council established pursuant to
subsection (a) into two jurisdictions, each with its own island destination
stewardship council; provided that:

����
(1)
�
The total population of the island or
islands within the jurisdiction of each island destination stewardship council
shall not be less than five thousand;

����
(2)
�
No island shall be separated in a
manner in which multiple island destination stewardship councils have
jurisdiction on portions of the same island;

����
(3)
�
Any newly created or amended island
destination stewardship council shall be named or renamed in a manner that
describes the jurisdiction of the island destination stewardship council; and

����
(4)
�
All islands with the jurisdiction of
any island destination stewardship council shall be within the same county.

����
�
��
-402
�
Island
destination stewardship councils; membership.
�

(a)
�
The membership of each
island destination stewardship council shall consist of not less than fifteen
members and not more than twenty members.

����
(b)
�
Each member of an island destination
stewardship council shall be appointed by the mayor of the applicable county
and approved by the council chair of the applicable county council or city
council.

����
(c)
�
Members appointed under subsections (d)(1),
(d)(5), (d)(6), (d)(7), and (e) shall be appointed to four-year terms and shall
not serve more than eight consecutive years.

����
(d)

�
The membership of an island destination
stewardship council shall include:

����
(1)
�
Representatives of each
census-designated place on each applicable island;

����
(2)
�
The county economic development
officer;

����
(3)
�
The executive director of the county
visitor bureau;

����
(4)
�
The head of the chamber of commerce or
equivalent, who shall be invited by the president of the corporation to be a
member;

����
(5)
�
A minimum of six and a maximum of nine
representatives of the county visitor industry, including owners, managers,
association leaders, or others with direct experience and expertise in managing
accommodations, restaurants, retail, entertainment, or attractions, who shall
be invited by the president to be a member;

����
(6)
�
At least one member having knowledge,
experience, and expertise in the area of Hawaiian cultural practices, who shall
be invited by the president to be a member; and

����
(7)
�
Local representatives of state agencies
having a role in the health of the Hawaii visitor economy, including the department
of land and natural resources, department of transportation, and department of
agriculture.

����
(e)
�
The membership of an island destination
stewardship council may also include representatives of:

����
(1)
�
Law enforcement or first responders;

����
(2)
�
Educational institutions;

����
(3)
�
Transportation entities;

����
(4)
�
Housing entities;

����
(5)
�
Agricultural entities; and

����
(6)
�
Nonprofit organizations engaged in
environmental, social, or cultural activities;

provided
that each member of a nongovernmental entity shall be invited by the president
to be a member.

����
(f)

�
The island destination
stewardship council membership shall elect a chair and a vice chair by a
majority vote of the full membership.

����
�
��
-403
�
Long-term
island destination stewardship action plans.
�

(a)
�
Each island destination
stewardship council shall draft and approve a long-term island destination stewardship
action plan, specific to the jurisdiction of the island destination stewardship
council, that:

����
(1)
�
Identifies priorities for a healthy
island visitor economy that creates positive visitor experiences;

����
(2)
�
Improves natural and cultural resources
valued by island residents and visitors;

����
(3)
�
Mitigates overcrowding and overuse; and

����
(4)
�
Advances regenerative strategies to
create beneficial outcomes from tourism,

as
described by guidelines established by the corporation.

����
(b)
�
No long-term island destination stewardship
action plan shall be effective unless approved by a majority vote of the
applicable full island destination stewardship council membership.

����
(c)
�
A long-term island destination stewardship
action plan may be amended under guidelines established by the corporation.

����
�
��
-404
�
Periodic
island destination stewardship action plans.
�
(a)
�

Each island destination stewardship council shall draft and approve a
periodic island destination stewardship action plan specific to the
jurisdiction of that island destination stewardship council.

����
(b)
�
Each periodic island destination stewardship
action plan shall:

����
(1)
�
Identify priority initiatives;

����
(2)
�
Identify and address destination
stewardship objectives; and

����
(3)
�
Apply to a period of time established
by the corporation.

����
(c)
�
Each periodic island destination stewardship
action plan shall be approved by a majority vote of the applicable full island
destination stewardship council membership.

����
(d)
�
The corporation shall establish the date by when
each island destination stewardship council shall issue a new periodic island
destination stewardship action plan; provided that the time period between each
periodic island destination stewardship action plan shall not be less than five
years or more than ten years;

����
(e)
�
A periodic island destination stewardship
action plan may be amended under guidelines established by the corporation.

����
�
��
-405
�
One-year
island destination stewardship action plans.
�
(a)
�

Each year, each island destination stewardship council shall draft and
approve a one-year island destination stewardship action plan specific to the
jurisdiction of the island destination stewardship council.

����
(b)
�
Each one-year island destination stewardship
action plan shall implement the priority initiatives identified in the
applicable periodic island destination stewardship action plan.

����
(c)
�
Each one-year island destination stewardship
action plan shall be approved by a majority vote of the applicable full island
destination stewardship council membership.

����
(d)
�
A one-year island destination stewardship
action plan may be amended as provided by the corporation.

����
(e)
�
Each island destination stewardship council shall
use funding from an annual destination stewardship grant to implement the applicable
island destination stewardship action plan in collaboration with designated
representatives of the corporation and in keeping with grant guidelines
established by the corporation.

����
�
��
-406
�
Declaration
of public function, purpose, and necessity.
�
The powers and functions granted to and
exercised by any island destination stewardship council under this chapter are
declared to be public and governmental functions, exercised for a public
purpose, and matters of public necessity.
�

A member of an island destination stewardship council shall not be responsible
individually to any person for liability for any good faith activity of an island
destination stewardship council.

����
�
��
-407
�
Annual
reports.
�
(a)
�
Each island destination stewardship council,
in collaboration with designated representatives of the corporation, shall prepare
and approve an annual report identifying outcomes of the plans and priority
initiatives specified in sections
���

-205,
���
-403,
���
-404, and -405 that
are applicable to the island destination stewardship council.
�
Each annual report shall also describe compliance
with the grant guidelines.

����
(b)
�
Each annual report shall be submitted to the
corporation and included in the corporation's annual report under section
���
-208."

PART III

����
SECTION 3.
�

The purpose of this part is to abolish the Hawaii tourism authority.

����
SECTION
4
.
�
Section 28-8.3, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

����
"
(a)
�
No department of the State other than the
attorney general may employ or retain any attorney, by contract or otherwise,
for the purpose of representing the State or the department in any litigation,
rendering legal counsel to the department, or drafting legal documents for the
department; provided that the foregoing provision shall not apply to the
employment or retention of attorneys:

����
(1)
�
By
the public utilities commission, the labor and industrial relations appeals
board, and the Hawaii labor relations board;

����
(2)
�
By
any court or judicial or legislative office of the State; provided that if the
attorney general is requested to provide representation to a court or judicial
office by the chief justice or the chief justice's designee, or to a
legislative office by the speaker of the house of representatives and the
president of the senate jointly, and the attorney general declines to provide
such representation on the grounds of conflict of interest, the attorney
general shall retain an attorney for the court, judicial, or legislative
office, subject to approval by the court, judicial, or legislative office;

����
(3)
�
By
the legislative reference bureau;

����
(4)
�
By
any compilation commission that may be constituted from time to time;

����
(5)
�
By
the real estate commission for any action involving the real estate recovery
fund;

����
(6)
�
By
the contractors license board for any action involving the contractors recovery
fund;

����
(7)
�
By
the office of Hawaiian affairs;

����
(8)
�
By
the department of commerce and consumer affairs for the enforcement of
violations of chapters 480 and 485A;

����
(9)
�
As
grand jury counsel;

���
(10)
�
By
the Hawaii health systems corporation, or its regional system boards, or any of
their facilities;

���
(11)
�
By
the auditor;

���
(12)
�
By
the office of ombudsman;

���
(13)
�
By
the insurance division;

���
(14)
�
By
the University of Hawaii;

���
(15)
�
By
the Kahoolawe island reserve commission;

���
(16)
�
By
the division of consumer advocacy;

���
(17)
�
By
the office of elections;

���
(18)
�
By
the campaign spending commission;

��
[
(19)
�
By
the Hawaii tourism authority, as provided in section 201B-2.5;

���
(20)
]

(19)
�
By the division of financial institutions;

��
[
(21)
]

(20)
�
By the office of information practices;

��
[
(22)
]

(21)
�
By the school facilities authority;

��
[
(23)
]

(22)
�
By
the Mauna Kea
stewardship and oversight authority
; or

��
[
(24)
]

(23)
�

By a department, if the attorney general, for reasons deemed by
the attorney general to be good and sufficient, declines to employ or retain an
attorney for a department; provided that the governor waives the provision of
this section."

����
SECTION
5
.
�
Section 36-27, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

����
"
(a)
�
Except as provided in this section, and notwithstanding
any other law to the contrary, from time to time, the director of finance, for
the purpose of defraying the prorated estimate of central service expenses of
government in relation to all special funds, except the:

����
(1)
�
Special out-of-school time instructional
program fund under section 302A-1310;

����
(2)
�
School cafeteria special funds of the
department of education;

����
(3)
�
Special funds of the University of Hawaii;

����
(4)
�
Convention center enterprise special fund
under section [
201B-8;
]
���
-211;

����
(5)
�
Special funds established by section 206E-6;

����
(6)
�
Aloha Tower fund created by section 206J-17;

����
(7)
�
Funds of the employees' retirement system
created by section 88-109;

����
(8)
�
Hawaii hurricane relief fund established under
chapter 431P;

����
(9)
�
Hawaii health systems corporation special
funds and the subaccounts of its regional system boards;

���
(10)
�
Universal service fund established under
section 269‑42;

���
(11)
�
Emergency and budget reserve fund under
section 328L‑3;

���
(12)
�
Public schools special fees and charges fund
under section 302A-1130;

���
(13)
�
Sport fish special fund under section
187A-9.5;

���
(14)
�
Neurotrauma special fund under section 321H-4;

���
(15)
�
Glass advance disposal fee established by
section 342G-82;

���
(16)
�
Center for nursing special fund under
section
304A
‑2163;

���
(17)
�
Passenger facility charge special fund
established by section 261-5.5;

���
(18)
�
Solicitation of funds for charitable purposes
special fund established by section 467B-15;

���
(19)
�
Land conservation fund established by section
173A-5;

���
(20)
�
Court interpreting services revolving fund
under section 607-1.5;

���
(21)
�
Trauma system special fund under section 321-22.5;

���
(22)
�
Hawaii cancer research special fund;

���
(23)
�
Community health centers special fund;

���
(24)
�
Emergency medical services special fund;

���
(25)
�
Rental motor vehicle customer facility charge
special fund established under section 261-5.6;

���
(26)
�
Shared services technology special fund under
section 27-43;

���
(27)
�
Automated victim information and notification
system special fund established under section 353-136;

���
(28)
�
Deposit beverage container deposit special
fund under section 342G-104;

���
(29)
�
Hospital sustainability program special fund
under section 346G-4;

���
(30)
�
Nursing facility sustainability program
special fund under
section 346F-4
;

���
(31)
�
Hawaii 3R's school improvement fund under
section 302A-1502.4;

���
(32)
�
After-school plus program revolving fund under
section 302A-1149.5;

���
(33)
�
Civil monetary penalty special fund under
section 321‑30.2; and

[
[
](34)[
]
]

�
Stadium development special fund under
section 109‑3.5,

shall deduct five per cent of all
receipts of all other special funds, which deduction shall be transferred to
the general fund of the State and become general realizations of the
State.
�
All officers of the State and
other persons having power to allocate or disburse any special funds shall
cooperate with the director in effecting these transfers.
�
To determine the proper revenue base upon
which the central service assessment is to be calculated, the director shall
adopt rules pursuant to chapter 91 for the purpose of suspending or limiting
the application of the central service assessment of any fund.
�
No later than twenty days prior to the
convening of each regular session of the legislature, the director shall report
all central service assessments made during the preceding fiscal year.
"

����
SECTION
6
.
�
Section 36-30, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

����
"
(a)
�

Each special fund, except the:

����
(1)
�
Special out-of-school time instructional
program fund under section 302A-1310;

����
(2)
�
School cafeteria special funds of the
department of education;

����
(3)
�
Special funds of the University of
Hawaii;

����
(4)
�
Special funds established by section
206E-6;

����
(5)
�
Aloha Tower fund created by section
206J-17;

����
(6)
�
Funds of the employees' retirement
system created by section 88-109;

����
(7)
�
Hawaii hurricane relief fund
established under chapter 431P;

����
(8)
�
Convention
center
enterprise
special fund established under section [
201B-8;
]
���
-211
;

����
(9)
�
Hawaii health systems corporation special
funds and the subaccounts of its regional system boards;

���
(10)
�
Universal service fund established
under section 269‑42;

���
(11)
�
Emergency and budget reserve fund under
section 328L‑3;

���
(12)
�
Public schools special fees and charges
fund under section 302A-1130;

���
(13)
�
Sport fish special fund under section
187A-9.5;

���
(14)
�
Neurotrauma special fund under section 321H-4;

���
(15)
�
Center for nursing special fund under
section 304A‑2163;

���
(16)
�
Passenger facility charge special fund
established by section 261-5.5;

���
(17)
�
Court interpreting services revolving
fund under section 607-1.5;

���
(18)
�
Trauma system special fund under
section 321-22.5;

���
(19)
�
Hawaii cancer research special fund;

���
(20)
�
Community health centers special fund;

���
(21)
�
Emergency medical services special
fund;

���
(22)
�
Rental motor vehicle customer facility
charge special fund established under section 261-5.6;

���
(23)
�
Shared services technology special fund
under section
27-43;

���
(24)
�
Nursing facility sustainability program
special fund established pursuant to
section 346F-4
;

���
(25)
�
Automated victim information and notification
system special fund established under section 353-136;

���
(26)
�
Hospital
sustainability program special fund under
section 346G-4;

���
(27)
�
Civil monetary penalty special fund under
section 321‑30.2; and

[
[
](28)[
]
]

�
Stadium development special fund under
section 109‑3.5,

shall be
responsible for its pro rata share of the administrative expenses incurred by
the department responsible for the operations supported by the special fund
concerned."

����
SECTION
7
.
�
Section 88-9, Hawaii Revised Statutes, is
amended by amending subsection (d) to read as follows:

����
"(d)
�

A retirant may be employed without reenrollment in the system and suffer
no loss or interruption of benefits provided by the system or under chapter 87A
if the retirant is employed:

����
(1)
�
As an elective officer pursuant to
section 88-42.6(c) or as a member of the legislature pursuant to section
88-73(d);

����
(2)
�
As a juror or precinct official;

����
(3)
�
As a part-time or temporary employee
excluded from membership in the system pursuant to section 88-43, as a session
employee excluded from membership in the system pursuant to section 88-54.2, [
as
the president and chief executive officer of the Hawaii tourism authority
excluded from membership in the system pursuant to section 201B-2,
] or as
any other employee expressly excluded by law from membership in the system;
provided that:

���������
(A)
�
The retirant was not employed by the
State or a county during the six calendar months prior to the first day of
reemployment; and

���������
(B)
�
No agreement was entered into between
the State or a county and the retirant, prior to the retirement of the
retirant, for the return to work by the retirant after retirement;

����
(4)
�
In a position identified by the
appropriate jurisdiction as a labor shortage or difficult-to-fill position;
provided that:

���������
(A)
�
The retirant was not employed by the
State or a county during the twelve calendar months prior to the first day of
reemployment;

���������
(B)
�
No agreement was entered into between
the State or a county and the retirant, prior to the retirement of the
retirant, for the return to work by the retirant after retirement; and

���������
(C)
�
Each employer shall contribute to the
pension accumulation fund the required percentage of the rehired retirant's
compensation to amortize the system's unfunded actuarial accrued liability; or

����
(5)
�
As a teacher or an administrator in a
teacher shortage area identified by the department of education or in a charter
school or as a mentor for new classroom teachers; provided that:

���������
(A)
�
The retirant was not employed by the
State or a county during the twelve calendar months prior to the first day of
reemployment;

���������
(B)
�
No agreement was entered into between
the State or a county and the retirant prior to the retirement of the retirant,
for the return to work by the retirant after retirement; and

���������
(C)
�
The department of education or charter
school shall contribute to the pension accumulation fund the required
percentage of the rehired retirant's compensation to amortize the system's
unfunded actuarial accrued liability."

����
SECTION
8
.
�
Section 206E-34, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

����
"(c)
�

The Hawaii community development authority shall:

����
(1)
�
Designate
and develop the state-owned land for the cultural public market;

����
(2)
�
Accept,
for consideration, input regarding the establishment of the cultural public
market from the following [
departments and agencies
]:

���������
(A)
�
The
department of agriculture;

���������
(B)
�
The
department of business, economic development, and tourism;

���������
(C)
�
The
department of land and natural resources;

���������
(D)
�
The
department of labor and industrial relations; and

���������
(E)
�
The
[
Hawaii tourism authority;
]
corporation for the stewardship of Hawaii
tourism;

����
(3)
�
Consider
and determine the propriety of using public‑private partnerships in the
development and operation of the cultural public market;

����
(4)
�
Develop,
distribute, and accept requests for proposals from private entities for plans
to develop and operate the cultural public market; and

����
(5)
�
Ensure
that the Hawaiian culture is the featured culture in the cultural public
market."

����
SECTION
9
.
�
Section 225P-3, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

����
"(c)
�

The
commission
shall
include the following members:

����
(1)
�
The chairs of the standing
committees
of the legislature with
subject matter jurisdiction encompassing environmental protection and land use;

����
(2)
�
The chairperson of the board of land
and natural resources or the chairperson's designee, who shall be the co-chair
of the
commission
;

����
(3)
�
The director of the office of planning
and sustainable development or the director's designee, who shall be the
co-chair of the
commission
;

����
(4)
�
The director of business, economic
development, and tourism or the director's designee;

����
(5)
�
The [
chairperson of the board of
directors of the Hawaii tourism authority or the chairperson's
]
chair of
the state destination stewardship council or the chair's
designee;

����
(6)
�
The chairperson of the board of
agriculture or the chairperson's designee;

����
(7)
�
The chief executive officer of the
office of Hawaiian affairs or the officer's designee;

����
(8)
�
The chairperson of the Hawaiian homes
commission or the chairperson's designee;

����
(9)
�
The director of transportation or the
director's designee;

���
(10)
�
The director of health or the director's
designee;

���
(11)
�
The adjutant general or the adjutant
general's designee;

���
(12)
�
The chairperson of the board of
education or the chairperson's designee;

���
(13)
�
The directors of each of the county
planning departments, or the directors' designees; and

���
(14)
�
The manager of the coastal zone
management program."

����
SECTION

10
.
�
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;
]

���
-211;

����
(3)
�
An allocation shall be deposited into
the tourism emergency special fund, established in section [
201B‑10,
]

���
-210,
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.

����
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

11
.
�
Section
237-24.75, Hawaii Revised Statutes, is amended to read as follows:

����
"
�237-24.75
�

Additional exemptions.
�
In
addition to the amounts exempt under section 237-24, this chapter shall not
apply to:

����
(1)
�
Amounts received as a beverage
container deposit collected under chapter 342G, part VIII;

����
(2)
�
Amounts received by the operator of the
Hawaii convention center for reimbursement of costs or advances made pursuant
to a contract with the [
Hawaii tourism authority under section 201B‑7;
]

corporation for the stewardship of Hawaii tourism to conduct destination
stewardship activities under chapter ;
and

����
(3)
�
Amounts received by a professional employer
organization that is registered with the department of labor and industrial
relations pursuant to chapter 373L, from a client company equal to amounts that
are disbursed by the professional employer organization for employee wages,
salaries, payroll taxes, insurance premiums, and benefits, including
retirement, vacation, sick leave, health benefits, and similar employment
benefits with respect to covered employees at a client company; provided that
this exemption shall not apply to amounts received by a professional employer
organization after:

���������
(A)
�
Notification from the department of
labor and industrial relations that the professional employer organization has
not fulfilled or maintained the registration requirements under this chapter;
or

���������
(B)
�
A determination by the department that
the professional employer organization has failed to pay any tax withholding
for covered employees or any federal or state taxes for which the professional
employer organization is responsible.

���������
As
used in this paragraph, "professional employer organization", "client
company", and "covered employee" shall have the meanings
provided in section 373L-1.

����
SECTION

12
.
�
Chapter 201B,
Hawaii Revised Statutes, is repealed.

����
SECTION

13
.
�
Sections
6E-18, 23-13, 23-76, 46-11, 84-18, and 171-173, Hawaii Revised Statutes, are
amended by substituting the term "corporation for the stewardship of
Hawaii tourism" wherever the term "Hawaii tourism authority"
appears, as the context requires.

����
SECTION 14.
�

All unencumbered balances remaining in the tourism emergency special
fund repealed by section 12 of this Act shall lapse to the credit of the
tourism emergency special fund established by section 2 of this Act.

����
SECTION 15.
�

All unencumbered balances remaining in the convention center enterprise
special fund repealed by section 12 of this Act shall lapse to the credit of
the convention center enterprise special fund established by section 2 of this
Act.

PART IV

����
SECTION
16.
�
Transition; destination
stewardship organization service agreement.
�

(a)
�
The governor shall
establish a transition period during which the Hawaii tourism authority shall
continue to direct brand development, destination management, and perform other
responsibilities of the Hawaii tourism authority.

����
(b)
�
During the transition period, the corporation
for the stewardship of Hawaii tourism shall be organized and all necessary
administrative actions shall be taken so that it may be fully operational and
capable of effectively fulfilling the objectives, purpose, duties, and
functions set forth in its articles of incorporation.

����
(c)
�
During the transition period and for any
subsequent period until the state destination stewardship council appoints a
president of the corporation for the stewardship of Hawaii tourism under
section
���
-203(a), the individual who was
the president and chief executive officer of the Hawaii tourism authority on
the effective date of this Act, or another individual appointed by the governor
without regard to section 26-34, Hawaii Revised Statutes, shall serve as the
president of the corporation for the stewardship of Hawaii tourism.

����
(d)
�
The governor shall enter into and execute a
destination stewardship organization service agreement with the corporation for
the stewardship of Hawaii tourism.
�
The
agreement shall describe a process not to exceed three months to transition
responsibilities from the Hawaii tourism authority to the corporation for the
stewardship of Hawaii tourism.
�
The
agreement shall establish dates for the transition to begin and end.

����
For
purposes of this subsection, "destination stewardship organization service
agreement" means a written contract authorizing a destination stewardship
organization to expend state funding to achieve specified deliverables on
behalf of the State.

����
(e)
�
On the date upon which the transition period
ends, the corporation for the stewardship of Hawaii tourism shall assume the
principal duties of stewarding the marketing and promotion of Hawaii as a
visitor destination, destination development, and other duties carried out by
the Hawaii tourism authority under chapter 201B, Hawaii Revised Statutes, on
the effective date of this Act.

����
(f)
�
All terms and conditions that govern the
agreement shall be binding and enforceable to all of the parties.
�
The corporation for the stewardship of Hawaii
tourism shall not assume nor be held liable for existing obligations or debts
of the Hawaii tourism authority, unless expressly provided for under the
agreement.

����
(g)
�
On the final date of the transition, the state
destination stewardship council shall issue and deliver a certification of
transition to the president of the Hawaii tourism authority, governor, and the
revisor of statutes.

����
(h)
�
Once the certification of transition is
received, the Hawaii tourism authority shall cease to carry out the delegated
functions.
�
The Hawaii tourism authority
shall certify the date of transfer of delegated functions to the governor, upon
which date the authority shall be abolished.

����
SECTION 17.
�

All rights, powers, functions, and duties of the Hawaii tourism
authority shall be transferred to the corporation for the stewardship of Hawaii
tourism pursuant to this Act.

����
All employees who occupy civil service
positions and whose functions are transferred to the corporation for the stewardship
of Hawaii tourism by this Act shall retain their civil service status, whether
permanent or temporary.
�
Employees shall
be transferred without loss of salary, seniority (except as prescribed by
applicable collective bargaining agreements), retention points, prior service
credit, any vacation and sick leave credits previously earned, and other
rights, benefits, and privileges, in accordance with state personnel laws and
this Act; provided that the employees possess the minimum qualifications and
public employment requirements for the class or position to which transferred
or appointed, as applicable; provided further that subsequent changes in status
may be made pursuant to applicable civil service and compensation laws.

����
Any employee who, prior to this Act, is
exempt from civil service and is transferred as a consequence of this Act may
retain the employee's exempt status, but shall not be appointed to a civil
service position as a consequence of this Act.
�

An exempt employee who is transferred by this Act shall not suffer any
loss of prior service credit, vacation or sick leave credits previously earned,
or other employee benefits or privileges as a consequence of this Act; provided
that the employees possess legal and public employment requirements for the
position to which transferred or appointed, as applicable; provided further
that subsequent changes in status may be made pursuant to applicable employment
and compensation laws.
�
The director of business,
economic development, and tourism may prescribe the duties and qualifications
of these employees and fix their salaries without regard to chapter 76, Hawaii
Revised Statutes.

����
SECTION 18.
�

All appropriations, records, equipment, machines, files, supplies,
contracts, books, papers, documents, maps, and other personal property
heretofore made, used, acquired, or held by the Hawaii tourism authority relating
to the functions transferred to the corporation for the stewardship of Hawaii
tourism shall be transferred with the functions to which they relate.

PART V

����
SECTION 19.
�

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

����
SECTION
20.
�
This Act shall take effect upon its
approval; provided that part III shall take effect on the date the governor
transmits the certification required under section 16(g) of this Act to the
revisor of statutes.

INTRODUCED BY:

_____________________________

Report Title:

Tourism; Hawaii
Tourism Authority; Corporation for the Stewardship of Hawaii Tourism;
Destination Management

Description:

Replaces
the Hawaii Tourism Authority with the Corporation for the Stewardship of Hawaii
Tourism, a nonprofit entity to guide Hawaii's visitor economy in collaboration
with public, private, nonprofit, and community stakeholders in achieving
beneficial outcomes from tourism based on the principles of destination
stewardship and regenerative tourism.

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