RELATING TO TOURISM.

HB1947

HOUSE OF REPRESENTATIVES

H.B. NO.

1947

THIRTY-THIRD LEGISLATURE, 2026

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 recognizes that
tourism is a vital component of Hawaii's economy and it is essential to ensure
that this resource is managed effectively to support the State's well-being.

����
The legislature
finds that the state auditor and an independent public accounting firm have
identified deficiencies in internal controls, organizational management,
program development, and tourism management at the Hawaii tourism authority, underscoring
the urgent need for organizational reform.

����
The
legislature further finds that a governance study commissioned by the Hawaii tourism
authority has shown that a change in culture, direction, and organizational
structure is needed to promote and protect tourism as a highly valuable asset
for the State and its people.

����
Therefore,
the legislature finds it prudent to eliminate the Hawaii tourism authority and
place the functions of branding, marketing, and coordinating and promoting the State
within the department of business, economic development, and tourism.
�
This change is intended to strengthen tourism
management and foster confidence among stakeholders in the State's strategic
approach to managing a world-class destination.

����
Furthermore,
the legislature understands that the impacts of tourism on Hawaii's residents
must be managed collaboratively.
�
The
primary effects of visitors to the State are the physical use of Hawaii's
natural resources and environment.
�
The state
agency with the most experience and expertise in mitigating the impacts of
tourism on the environment and natural resources is the department of land and natural
resources.
�
The department also has
offices on every island to manage the personnel and other resources needed for
destination management.
�
The legislature finds
that a division of destination management should be established within the department
of land and natural resources to address and remediate the physical impacts of
tourism, encouraging stakeholder involvement in sustainable practices.

����
With these
changes and oversight from the legislature, a balance can be achieved to
accommodate the needs of economic development and those of sustainability and
destination management.

PART II

����
SECTION 2.
�
Chapter 201B, Hawaii Revised Statutes, is
repealed.

PART III

����
SECTION 3.
�
The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:

"
Chapter

DESTINATION
MANAGEMENT

����
� -1
�
Definitions.
�

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

����
"Department" means the department
of land and natural resources.

����
"Destination stewardship" means
the shared responsibility of government, communities, residents, businesses,
and visitors to intentionally manage a place in a way that protects its natural
environment, cultural heritage, and social fabric while supporting a healthy,
resilient economy so the destination can thrive for current and future
generations.

����
"Division" means the division of
destination management of the department.

����
� -2
�
Destination management; division; established.
�

There is established within the department the division of destination
management.

����
� -3
�
Division of destination management; staff.
�

(a)
�
The division shall be headed
by the chief administrator, who shall be exempt from chapter 76 and who shall
oversee the staff of the division.

����
(b)
�

The staff of the division shall be exempt from chapter 76 and shall
include:

����
(1)
�
The assistant to the chief administrator;

����
(2)
�
A destination management manager for the
island of Hawaii;

����
(3)
�
A
destination management manager for the island of Kauai;

����
(4)
�
A
destination management manager for the island of Maui;

����
(5)
�
A
destination management manager for the islands of Molokai and Lanai; and

����
(6)
�
A
destination management manager for the island of Oahu.

����
� -4
�

Destination management action plans; counties; objectives;
execution.

�
To meet the destination
management objectives for each county, the division may perform the actions
specified in each of the following plans:

����
(1)
�
Oahu destination management action plan;

����
(2)
�
Hawaii island destination management action
plan;

����
(3)
�
Maui nui destination management action plan;
and

����
(4)
�
Kauai destination management action plan,

during the specified phases; provided that the
execution of each destination management action plan shall be dependent on the
cooperation and participation of the applicable state or county agency or an
advisory group established pursuant to section ‑5.

����
� -5
�
Assistance by state and county agencies;
advisory group.
�
(a)
�

Any state or county agency may render services upon request of the division.

����
(b)
�
The
division may establish an advisory group that may meet monthly or as the division
deems necessary, which may include the chairperson of the board of land and
natural resources; director of business, economic development, and tourism;
director of transportation; and executive director of the state foundation on
culture and the arts to advise the division on matters relating to their
respective departments or agency in the preparation and execution of suggested:

����
(1)
�
Measures
to respond to tourism emergencies pursuant to section 201-H;

����
(2)
�
Programs for the management, improvement, and
protection of Hawaii's natural environment and other areas frequented by
visitors;

����
(3)
�
Measures to address issues affecting airlines,
air routes, and barriers to travel to Hawaii; and

����
(4)
�
Programs to perpetuate the cultures of Hawaii
and engage local communities to sustain and preserve the native Hawaiian
culture.

����
� -6
�
Court proceedings; preferences; venue.

�
(a)
�
Any
action or proceeding to which the division, the State, or the county may be a
party, in which any question arises as to the validity of this chapter, shall
be preferred over all other civil cases, except election cases, in the circuit
court of the circuit in which the case or controversy arises, and shall be
heard and determined in preference to all other civil cases pending therein,
except election cases, irrespective of position on the calendar.

����
(b)
�
Upon application of counsel to the division,
the same preference shall be granted in any action or proceeding questioning
the validity of this chapter in which the division may be allowed to intervene.

����
(c)
�
Any action or proceeding to which the division,
the State, or the county may be party, in which any question arises as to the
validity of this chapter or any portion of this chapter, or any action of the division
may be filed in the circuit court of the circuit in which the case or
controversy arises, which court is hereby vested with original jurisdiction
over the action.

����
(d)
�
Notwithstanding any provision of law to the
contrary, declaratory relief from the circuit court may be obtained for any
action.

����
(e)
�
Any party aggrieved by the decision of the
circuit court may appeal in accordance with part I of chapter 641 and the
appeal shall be given priority.

����
� -7
�
Annual report.
�
The division
shall submit a complete
and detailed report of its activities, expenditures, and results toward
achieving the division's strategic plan goals, to the governor and legislature
no later than twenty days prior to the convening of each regular session of the
legislature.
�
The annual report shall
include the descriptions and evaluations of programs funded, together with any
recommendations by the division."

PART IV

����
SECTION 4.
�
Chapter 201, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:

"
Part .
�
OFFICE OF TOURISM

����
�201-A
�
Definitions.
�

As used in this part, unless the context otherwise requires:

����
"Advisory board" means the
advisory board on tourism.

����
"Office" means the office of
tourism.

����
�201-B
�
Office of tourism; established.
�

There is established within the department the office of tourism.

����
�201-C
�
Advisory board on tourism.
�

(a)
�
There is established within
the department the advisory board on tourism.
�

The advisory board shall consist of twelve members; provided that:

����
(1)
�
The members shall
be appointed by the governor as provided in section 26-34, except as provided
by this section;

����
(2)
�
The members shall
include at least one representative each from the city and county of Honolulu
and the counties of Hawaii, Kauai, and Maui;

����
(3)
�
One member shall
be appointed by the speaker of the house of representatives, and one member
shall be appointed by the president of the senate;

����
(4)
�
At
least six members shall have knowledge, experience, and expertise in the area
of accommodations, transportation, retail, entertainment, or attractions, and
at least one member appointed by the governor shall have knowledge, experience,
and expertise in the area of Hawaiian cultural practices;

����
(5)
�
At
least one member shall represent a tourism-impacted entity;

����
(6)
�
The governor shall
make appointments to ensure the fulfillment of all requirements of paragraphs
(2) and (4); provided that upon the occurrence of a vacancy subject to
paragraph (3), the governor shall notify the speaker of the house of
representatives and the president of the senate of any unfulfilled requirements
pursuant to paragraphs (2) and (4), and the speaker of the house of
representatives or the president of the senate, as appropriate, shall appoint a
member who fulfills those requirements; and

����
(7)
�
No person who has
served as a member of the board of directors of an organization or business
that is under contract with the office of tourism shall be eligible to sit as a
member of the advisory board until at least two years have expired between the
person's termination from the contracting organization or business and the
person's appointment to the advisory board.

����
(b)
�
Members shall be appointed by the governor
for terms of four years; provided that membership on the board shall not exceed
eight consecutive years; provided further that each member shall hold office
until the member's successor is appointed and qualified.

����
(c)
�
The board shall elect a chairperson from
among its members.

����
(d)
�
Seven members shall constitute a quorum, and
a minimum of seven affirmative votes shall be necessary for all actions by the
office.
�
The members shall serve without
compensation, but shall be reimbursed for expenses, including traveling
expenses, necessary for the performance of their duties.

����
�201-D
�

Office of tourism; state tourism liaison; staff.
�

(a)
�
The office shall be headed by
the director of business, economic development, and tourism, who shall oversee the
staff of the office.
�
The state tourism
liaison shall serve as the liaison to the advisory board on tourism and shall
report to the governor.

����
(b)
�
The
staff of the office shall be exempt from chapter 76 and shall include:

����
(1)
�
The division manager, who shall oversee two
administrative assistants;

����
(2)
�
The chief brand officer, who shall oversee two
brand managers;

����
(3)
�
The chief finance and budget officer, who
shall oversee:

���������
(A)
�
A procurement manager; and

���������
(B)
�
A procurement assistant;

����
(4)
�
An attorney and compliance officer;

����
(5)
�
An account specialist; and

����
(6)
�
Two administrative staff.

����
�201-E
�

Office; private attorneys.
�

(a)
�
The advisory board may
appoint or retain by contract one or more attorneys who are independent of the
attorney general to provide legal services for the advisory board solely in
cases of contract negotiations in which the attorney general lacks sufficient
expertise; provided that the independent attorney shall consult and work in
conjunction with the designated deputy attorney general assigned to the office.

����
(b)
�
The advisory board may fix the compensation
of the attorneys appointed or retained pursuant to this section.
�
Attorneys appointed or retained by contract
shall be exempt from chapters 76, 78, and 88.

����
�201-F
�
Strategic tourism management plan; measures of effectiveness.
�
(a)
�

The division shall be responsible for developing a strategic tourism
management plan that advances tourism marketing, complies with destination
management best practices, and promotes regenerative tourism.
�
The plan shall be a single, comprehensive
document that shall be updated every year and include the following:

����
(1)
�
Statewide Hawaii
brand management efforts and programs;

����
(2)
�
Targeted markets;

����
(3)
�
Efforts to enter
into Hawaii brand management projects that make effective use of cooperative
programs;

����
(4)
�
Program
performance goals and targets that can be monitored as market gauges and used
as attributes to evaluate the division's programs;

����
(5)
�
The division's
guidance and direction for the development and coordination of promotional and
marketing programs that build and promote the Hawaii brand, which are
implemented through contracts and agreements with destination marketing
organizations or other qualified organizations, including:

���������
(A)
�
Target markets and
the results being sought;

���������
(B)
�
Key performance
indicators and return on investment; and

���������
(C)
�
Private sector
collaborative or cooperative efforts that may be required; and

����
(6)
�
Statewide
destination management and regenerative tourism efforts and programs.

����
(b)
�

In accordance with subsection (a), the division shall develop measures
of effectiveness to assess the overall benefits and effectiveness of the
strategic tourism management plan and include documentation of the progress of
the strategic tourism management plan toward achieving the division's strategic
plan goals.

����
�201-G
�
Tourism-related
activities.
�
(a)
�
The division may
enter into contracts and agreements that include the following:

����
(1)
�
Tourism
promotion, marketing, development, and destination management;

����
(2)
�
Market
development-related research;

����
(3)
�
Product
development and diversification issues focused on visitors;

����
(4)
�
Promotion,
development, and coordination of festivals, community events, cultural
activities, environmental stewardship activities, sports-related activities,
and events that strengthen the relationships between the place and people for
Hawaii's residents and visitors alike;

����
(5)
�
Promotion
of Hawaii, through a coordinated statewide effort, as a place to do business,
including high technology business, and as a business destination;

����
(6)
�
Reduction
of barriers to travel;

����
(7)
�
Marketing,
management, use, operation, or maintenance of the convention center facility,
including the purchase or sale of goods or services, logo items, concessions,
sponsorships, and license agreements, or any use of the convention center
facility as a commercial enterprise; provided that effective January 1,
2020, and thereafter, contracts issued pursuant to this paragraph for the
marketing of all uses of the convention center facility may be issued
separately from the management, use, operation, or maintenance of the facility;

����
(8)
�
Tourism
research and statistics to:

���������
(A)
�
Measure
and analyze tourism trends;

���������
(B)
�
Provide
information and research to assist in the development and implementation of
state tourism policy; and

���������
(C)
�
Provide
tourism information on:

�������������
(i)
�
Visitor arrivals, visitor characteristics, and expenditures;

������������
(ii)
�
The number of transient accommodation units available, occupancy
rates, and room rates;

�����������
(iii)
�
Airline-related data including seat capacity and number of flights;

������������
(iv)
�
The economic, social, and physical impacts of tourism on the State;
and

�������������
(v)
�
The effects of the strategic tourism management programs of the
division on the measures of effectiveness developed pursuant to section
-F(b); and

����
(9)
�
Any
and all other activities necessary to carry out the intent of this chapter;

provided
that the division shall annually submit a report of the contracts and
agreements entered into by the division to the governor, speaker of the house
of representatives, president of the senate, and chairperson of the board of
land and natural resources.

����
(b)
�

The division shall be responsible for:

����
(1)
�
Creating a vision
and developing a long-range strategic plan for tourism in Hawaii;

����
(2)
�
Developing
destination management action plans for each county;

����
(3)
�
Arranging
for the conduct of research through contractual services with the university of
Hawaii or any agency or other qualified persons concerning social, economic,
and environmental aspects of tourism development in the State; and

����
(4)
�
Providing
technical or other assistance to agencies and private industry upon request.

����
(c)
�

The division may delegate to staff the responsibility for soliciting,
awarding, and executing contracts and for monitoring and facilitating any and
all functions developed in accordance with this section.

����
(d)

�
Where public disclosure of information
gathered or developed by the division may place a business at a
competitive

disadvantage or may impair or frustrate the division's ability to either
compete as a visitor destination or obtain or use information for a legitimate
government function, the division may withhold from public disclosure
competitively sensitive information, including:

����
(1)
�
Completed survey forms and questionnaire
forms;

����
(2)
�
Coding sheets; and

����
(3)
�
Database records of the information.

����
�201-
H
�

Tourism emergency.
�
(a)
�
If the division 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 division shall submit a request to the governor to declare
that a tourism emergency exists.

����
(b)
�
Upon declaration by the governor that a
tourism emergency exists pursuant to subsection (a), the division 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, no action in response to
the tourism emergency declaration may be taken by the division without the
governor's express approval.

����
�201-I
�
Tourism emergency special fund.
�
(a)
�

There is established outside the state treasury a tourism emergency
special fund to be administered by the division, 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 201‑H,
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 division as administrator for the special
fund.

����
�201-J
�
Applicability of Hawaii public
procurement code; convention center contractor; construction contracts.

�
The construction contracts for the maintenance
of the convention center facility by the private contractor that operates the
convention center, by its direct or indirect receipt of, and its expenditure
of, public funds from the department of business, economic development, and
tourism or the office, or both, shall be subject to chapter 103D.

����
�201-K
�
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 or 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 pursuant to section 201‑G(a)(7).

����
(b)
�
Moneys in the convention center enterprise
special fund shall be used by the office 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 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
pursuant to section 201‑G(a)(7).

����
(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 office until such
time as the moneys may be needed; provided that the office 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.

����
�201-L
�
Exemption of office

from taxation.

�
All revenues and receipts derived by the
office from any project or a project agreement or other agreement pertaining
thereto shall be exempt from all state taxation.
�
Any right, title, and interest of the office
in any project shall also be exempt from all state taxation.
�
Except as otherwise provided by law, the
interest of a qualified person or other user of a project or a project
agreement or other agreements related to a project shall not be exempt from
taxation to a greater extent than it would be if the costs of the project were
directly financed by the qualified person or user.

����
�201-M
�
Court proceedings; preferences; venue.

�
(a)
�
Any
action or proceeding to which the office, the State, or the county may be a
party, in which any question arises as to the validity of this chapter, shall
be preferred over all other civil cases, except election cases, in the circuit
court of the circuit in which the case or controversy arises, and shall be
heard and determined in preference to all other civil cases pending therein,
except election cases, irrespective of position on the calendar.

����
(b)
�
Upon application of counsel to the office,
the same preference shall be granted in any action or proceeding questioning
the validity of this chapter in which the office may be allowed to intervene.

����
(c)
�
Any action or proceeding to which the office,
the State, or the county may be party, in which any question arises as to the
validity of this chapter or any portion of this chapter, or any action of the office
may be filed in the circuit court of the circuit in which the case or
controversy arises, which court is hereby vested with original jurisdiction
over the action.

����
(d)
�
Notwithstanding any provision of law to the
contrary, declaratory relief from the circuit court may be obtained for any
action.

����
(e)
�
Any party aggrieved by the decision of the
circuit court may appeal in accordance with part I of chapter 641 and the
appeal shall be given priority."

PART V

����
SECTION
5
.
�
Section 28-8.3, Hawaii Revised Statutes, is
amended as follows:

����
1.
�
By amending subsection (a) to read:

����
"
(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,
]
office
of tourism,
as provided in section [
201B-2.5;
]
201‑E;

���
(20)
�
By the division of financial institutions;

���
(21)
�
By the office of information practices;

���
(22)
�
By the school facilities authority;

���
(23)
�
By
the Mauna Kea
stewardship and oversight authority
; or

���
(24)
�
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."

����
2.
�
By amending subsection (c) to read:

����
"
(c)
�
Every attorney employed by
any department on a full-time basis, except an attorney employed by the public
utilities commission, the labor and industrial relations appeals board, the
Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health
systems corporation or its regional system boards, the department of commerce
and consumer affairs in prosecution of consumer complaints, insurance division,
the division of consumer advocacy, the University of Hawaii, the [
Hawaii
tourism authority
]
office of tourism
as provided in section [
201B-2.5,
]

201‑E,
the Mauna Kea stewardship and oversight authority, the
office of information practices, or as grand jury counsel, shall be a deputy
attorney general."

����
SECTION
6
.
�
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;
]
201-K;

����
(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;

���
(34)
�
Stadium
development special fund under section 109-3.5; and

���
(35)
�
Universal
immunization purchase special fund under section [
[
]325-133[
]
],

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
7
.
�
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;
]
201-K;

����
(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
8
.
�
Section 201B-16, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�201B-16
�

Annual report.
�
The authority
shall submit a complete and detailed report of its activities, expenditures,
and results[
, including the progress of the strategic tourism management
plan developed pursuant to section 201B-6,
] toward achieving the
authority's strategic plan goals, to the governor and legislature no later than
twenty days prior to the convening of each regular session of the
legislature.
�
The annual report shall
include the descriptions and evaluations of programs funded, together with any
recommendations by the authority."

����
SECTION
9
.
�
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
]
office
under section
[
201B-7;
]
201‑G;
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
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;
]
201‑K;

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

PART VI

����
SECTION 11.
�
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 2026-2027 to be
allocated for the following positions established in section 2 of this Act:

����
(1)
�
$
for
one full-time equivalent (1.0 FTE)
chief
administrator;

����
(2)
�
$
for one full-time equivalent (1.0 FTE) destination management manager for the
island of Hawaii;

����
(3)
�
$
for one full-time equivalent (1.0 FTE) destination management manager for the
island of Kauai;

����
(4)
�
$
for one full-time equivalent (1.0 FTE) destination management manager for the
island of Maui;

����
(5)
�
$
for one full-time equivalent (1.0 FTE) destination management manager for the
islands of Molokai and Lanai; and

����
(6)
�
$
for one full-time equivalent (1.0 FTE) destination management manager for the
island of Oahu.

����
The sum
appropriated shall be expended by the department of land and natural resources
for the purposes of this Act.

SECTION 12.
�
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 2026-2027 to be allocated for the
following positions established in section 3 of this Act:

����
(1)
�
$
for one full-time equivalent (1.0 FTE) state tourism liaison;

����
(2)
�
$
for one full-time equivalent (1.0 FTE) division manager;

����
(3)
�
$
for two full-time equivalent (2.0 FTE) administrative assistants to the division
manager;

����
(4)
�
$
for one full-time equivalent (1.0 FTE) chief brand officer;

����
(5)
�
$
for two full-time equivalent (2.0 FTE) brand managers;

����
(6)
�
$
for one full-time equivalent (1.0 FTE) procurement manager;

����
(7)
�
$
for one full-time equivalent (1.0 FTE) procurement assistant;

����
(8)
�
$
for one full-time equivalent (1.0 FTE) chief finance and budget officer;

����
(9)
�
$
for one full-time equivalent (1.0 FTE) attorney and compliance officer;

���
(10)
�
$
for one full-time equivalent (1.0 FTE) account specialist; and

���
(11)
�
$
for two full-time equivalent (2.0 FTE) administrative staff.

����
The sum
appropriated shall be expended by the department of business, economic
development, and tourism for the purposes of this Act.

����
SECTION 13.
�
In codifying the new sections added by
section 4 of this Act, the revisor of statutes shall substitute appropriate
section numbers for the letters used in designating the new sections in this
Act.

����
SECTION 14.
�
This Act shall take effect on January 1, 2027;
provided that sections 11 and 12 of this Act shall take effect on July 1,
.

INTRODUCED BY:

_____________________________

Report Title:

Office of
Tourism; Department of Business, Economic Development, and Tourism; Division of
Destination Management, Department of Land and Natural Resources; Repeal of
Hawaii Tourism Authority

Description:

Repeals
the Hawaii Tourism Authority.
�
Establishes
the Office of Tourism within the Department of Business, Economic Development,
and Tourism.
�
Establishes the Division of
Destination Management within the Department of Land and Natural Resources.
�
Effective 1/1/2027.

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