RELATING TO ENVIRONMENTAL STEWARDSHIP FEES.

HB752

HOUSE OF REPRESENTATIVES

H.B. NO.

752

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to environmental stewardship fees
.

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

PART I

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SECTION 1.
�
The legislature finds that Hawaii's natural resources,
including reefs, oceans, forests, streams, estuaries, shorelines, and beaches,
provide irreplaceable and invaluable benefits to visitors, residents, and the
global community.

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The Hawaii State Constitution makes
clear that the State's natural and cultural resources are subject to the public
trust and therefore must be managed and protected for the benefit of present
and future generations.
�
The Hawaii State
Constitution further requires the State and its agencies to protect and enforce
Native Hawaiian rights, including traditional and customary practices
associated with, and dependent upon, carefully managed and abundant natural
resources.

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The legislature further finds that
Hawaii's natural environment faces significant environmental pressure from the
heavy use it receives from persons traveling to enjoy the State's natural
resources.
�
The current underinvestment
in the State's natural resources poses a significant liability to the visitor
industry; the stability of natural systems, including food systems and water
quality; and the ecosystems, services, fisheries, economic resilience, and
health and safety of the State.

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Hawaii residents currently
contribute to the protection and management of natural resources through taxes,
environmental care, subsistence, cultural practices, and the exercise of the
values and practices embodied in the Hawaii State Constitution.
�
However, with escalating visitor impacts and
an increasing global threat to the island ecosystems, there is an immediate
need for additional resources to protect, restore, sustain, manage, and
conserve natural resources.
�
A
regenerative tourism fee has been suggested by the Hawaii tourism authority as
a potential means to obtain these critical resources.
�
Accordingly, the legislature finds that it is
timely to ask visitors who enjoy and reap benefits of Hawaii's natural resources
to further contribute to their protection, care, and restoration.

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The legislature believes that a
license requirement for visitors who enjoy Hawaii's public beaches, trails,
parks, and ecosystems could generate the necessary funding each year to offset
the adverse impacts of visitors and conserve Hawaii's irreplaceable green
infrastructure in perpetuity.

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The legislature further finds that
visitor impact fees, which are also known as "green fees" or
"environmental protection fees", have been successfully implemented
in many visitor destinations throughout the world, including the Galapagos
Islands, New Zealand, and Palau.
�
In
these locations, the fees have demonstrated compounding benefits for visitors,
residents, and natural landscapes and seascapes.

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The legislature also believes that
it is imperative to raise additional revenues to offset visitor impacts and
ensure that a positive environmental legacy is left for future
generations.
�
An environmental
stewardship fee provides a reasonable and appropriate way to generate these
needed revenues.

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The legislature believes that
establishing an environmental stewardship fee in Hawaii would be a significant
and effective way to raise additional revenue to offset visitor impacts and
ensure a healthy environment for future generations.

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Accordingly, the purpose of this Act
is to establish an environmental stewardship fee program, to be administered by
the department of land and natural resources, and require a license for
visitors to use Hawaii's public beaches, parks, trails, coastlines, and
environment.
�
The purpose of the environmental
stewardship fee program shall be to provide sustained funding for the
protection, restoration, regeneration, enhancement, and care of Hawaii's
natural and outdoor recreational resources and build resilience of these
resources to withstand the impacts of increased visitor use.

PART II

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SECTION 2.
�
Chapter 171, Hawaii Revised Statutes, is
amended by adding a new part to be appropriately designated and to read as
follows:

"
Part .
�
Environmental stewardship FEE PROGRAM

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�171-A
�
Definitions.
�
For purposes of this part:

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"Fund" means the environmental
stewardship fee special fund established pursuant to section 171-E.

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"License" means a license
issued pursuant to this part.

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"Licensee" means a person
who is issued a license pursuant to this part.

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"Nonprofit organization"
means a private, nonprofit organization that has been granted tax exempt status
by the Internal Revenue Service pursuant to section 501(c)(3) of the Internal
Revenue Code of 1986, as amended, and that has among its charitable purposes
the preservation, restoration, management, or interpretation of natural or
cultural resources for scientific, historic, educational, recreational, scenic,
wildlife, or open-space purposes; the protection of the natural environment or
biological resources, or both; the preservation or enhancement, or both, of
wildlife; and the protection or interpretation, or both, of Native Hawaiian
cultural resources and practices related thereto.

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"Program" means the environmental
stewardship fee program.

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"Resident of Hawaii" means
an individual who has:

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(1)
�
Filed or paid
state income taxes for the previous tax year; or

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(2)
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Established
domicile in the State, as evidenced by documentation showing the individual's
address, including any of the following:

���������
(A)
�
A valid Hawaii
driver's license;

���������
(B)
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A valid Hawaii
state identification card;

���������
(C)
�
A valid school
identification card issued by a school in the State; or

���������
(D)
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Any other official
document issued to the individual within the last thirty days by a government
agency, financial institution, insurance company, or utility company in the
State.

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"Visitor" means a person
in Hawaii who is not a resident of Hawaii.

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�171-B
�
Environmental stewardship fee program;
license; signs.
�
(a)
�
There is established within the department
the environmental stewardship fee program.
�

The purpose of the program shall be to collect a fee from visitors
through a license and allocate that revenue to protect, restore, and manage
natural and cultural resources impacted by visitors.

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(b)
�

Beginning on a date established by the department by rule pursuant to
chapter 91, each visitor who is fifteen years of age or older who visits a
state park, beach, forest, hiking trail, or other natural area on state land,
as designated by the department by rule pursuant to chapter 91, shall first pay
an environmental stewardship fee to obtain a license pursuant to this part.

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(c)
�

The department shall place signs at state parks, beaches, forests, trail
heads, or other natural areas on state land to inform visitors of the
requirement to pay an environmental stewardship fee and obtain a license
pursuant to this part.

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�171-C
�
License; purchase.
�
(a)
�

The department shall establish convenient opportunities for visitors to
pay an environmental stewardship fee and be issued a license, including
through:

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(1)
�
A mobile
application; and

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(2)
�
An internet
website.

The department may authorize retail establishments
and nonprofit organizations to accept payment of an environmental stewardship fee
and issue a license.

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(b)
�

The amount of the environmental stewardship fee shall be $ ;
provided that the chairperson may increase the fee by rule pursuant to chapter
91 no more frequently than once every five years.

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(c)
�

Each license shall be effective for one year from the date of issuance.

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�171-D
�
Penalties.
�
(a)
�
A
visitor who visits a state park, beach, forest, hiking trail, or other natural
area on state land without first paying an environmental stewardship fee and
obtaining a license, in violation of section 171-B(b), shall be liable for a
civil fine not to exceed $ .
�
The assessment of penalties shall not begin
until at least five years after the effective date of this Act, to allow time
for effective implementation, public education, and enforcement.

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(b)
�

Any civil fine provided under this section may be imposed by the circuit
court or by the department after an opportunity for a hearing pursuant to
chapter 91.
�
Imposition of a civil fine
shall not be a prerequisite to any civil fine or injunctive relief ordered by
the circuit court.

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�171-E
�
Environmental stewardship fee special fund;
established.
�
(a)
�
There is established within the state
treasury the environmental stewardship fee special fund, into which shall be
deposited:

����
(1)
�
All revenue from environmental
stewardship fees, less any costs incurred in collecting those fees;

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(2)
�
All fines
collected pursuant to section 171-D, less any costs incurred in collecting
those fines;

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(3)
�
Transient accommodations tax revenues
allocated pursuant to section 237D-6.5(b)(5);

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(4)
�
Appropriations
made to the fund by the legislature; and

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(5)
�
Grants and gifts
made to the fund.

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(b)
�
The fund shall be administered and governed
by the department:

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(1)
�
With transparency
and accountability; and

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(2)
�
In a manner that
maximizes the effectiveness of the program.

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(c)
�

The department shall allocate moneys in the fund to be expended directly
by state agencies for projects that help offset adverse environmental impacts
caused by visitors, ensure that the State's natural resources are maintained
for continued use by licensees, or both.
�

Examples of permissible projects under this subsection include projects
that directly restore, enhance, and protect, in perpetuity, natural resources
and the State's unique and fragile ecological status, including projects that:

����
(1)
�
Protect, restore,
or enhance terrestrial and marine natural resources impacted by heavy usage of
licensees;

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(2)
�
Increase the
resilience and adaptation of Hawaii's natural resources with environmentally
beneficial strategies to reduce the adverse impacts of climate change,
including coastal erosion, sea level rise, damage to reefs, ocean
acidification, coral bleaching, damage to land resources, and other impacts
exacerbated by licensees; or

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(3)
�
Remove and control
invasive species and propagate and plant native species in state-owned
recreational areas utilized by licensees.

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(d)
�

The department shall allocate moneys in the fund to be expended directly
by the department for administration of the program, including the creation and
implementation of an environmental stewardship fee strategic plan that includes
a timetable indicating how the objectives and policies of this part will be
pursued and implemented.

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(e)
�

The department may allocate moneys to provide grants to the counties and
nonprofit organizations; provided that the annual aggregate sum of grants to
the counties and nonprofit organizations each does not exceed fifty per cent of
the annual environmental stewardship fee revenue.
�
In awarding grants, the department shall
prioritize projects that satisfy at least one of the following:

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(1)
�
Develop
nature-based solutions to environmental and climate issues exacerbated by
licensees;

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(2)
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Provide
significant protection, restoration, and enhancement of Hawaii's natural
resources in areas impacted by licensees; or

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(3)
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Increase the
resilience of state-owned natural resources impacted by licensees.

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(f)
�

The department may allocate moneys to provide cost‑matching funds
for federal grants that satisfy any of the following priorities:

����
(1)
�
Develop
nature-based solutions to environmental and climate issues exacerbated by
licensees;

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(2)
�
Provide
significant protection, restoration, and enhancement of Hawaii's natural
resources in areas impacted by licensees; or

����
(3)
�
Increase the
resilience of state-owned natural resources impacted by licensees.

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(g)
�

The department may allocate moneys necessary for the enforcement of this
part, including any enforcement or legal expenses incurred to enforce or
collect penalties pursuant to section 171-D.

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(h)
�

Moneys allocated from the fund shall be used for the purposes described
in this section; provided that these moneys shall complement but shall not
supplant other moneys regularly appropriated for those purposes.

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�171-F
�
Grants; qualifications and conditions.
�
(a)
�

For purposes of grants awarded pursuant to this part, any organization
requesting a grant shall:

����
(1)
�
Be licensed and
accredited, as applicable, under the laws of the State;

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(2)
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Have at least one
year of experience with the project or in the program area for which grant
moneys are requested; and

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(3)
�
Be qualified to
engage in the program or activity to be funded by the grant or employ or have
under contract persons who are qualified.

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(b)
�

Recipients of grants shall be subject to the following conditions:

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(1)
�
Any county or
nonprofit organization requesting a grant shall submit its request together
with all information required by the department on an application form
prescribed by the department;

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(2)
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The recipient of a
grant shall not use public funds for purposes of entertainment or perquisites;

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(3)
�
The recipient of a
grant shall comply with applicable federal, state, and county laws;

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(4)
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The recipient of a
grant shall comply with any other requirements the department may prescribe;

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(5)
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The recipient of a
grant shall allow the department, legislative bodies, and auditor full access
to records, reports, files, and other related documents so that the program,
management, and fiscal practices of the grant recipient may be monitored and
evaluated to assure the proper and effective expenditure of public funds;

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(6)
�
Each grant shall
be monitored pursuant to rules or policies established by the department to
ensure compliance with this part; and

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(7)
�
Any recipient of a
grant under this section who withholds or omits any material fact, deliberately
misrepresents facts to the department, or violates the terms of the recipient's
contract is in violation of this section and, in addition to any other
penalties provided by law, shall be prohibited from applying for a grant under
this part for a period of five years from the date of termination.

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(c)
�

The department shall use best efforts to provide grant recipients with
access to any state lands or natural resources necessary to effectuate the
project for which the grant is awarded.

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�171-G
�
Report to legislature.
�
(a)
�
No
later than twenty days before the convening of the regular session of 2026 and
each year thereafter, the department shall submit a report to the legislature.

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(b)
�

The report shall contain information on ways that the fund restored,
enhanced, and protected Hawaii's state-owned natural resources and its unique
and vulnerable ecosystem during the previous fiscal year, as well as the
benefits that have accrued or will accrue from those expenditures for the
benefit of the State's natural resources.

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(c)
�

The department shall publish the reports on its website.

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�171-H
�
Rules.
�

The department may adopt rules pursuant to chapter 91 necessary for the
purposes of this part, including any rules necessary to increase license fees
and to ensure that persons who purchase a license are aware that the license is
broader than an entrance fee to visit a specific state park, forest, hiking
trail, or other natural area on state land, which is used explicitly for that
park, forest, hiking trail, or other natural area."

PART III

����
SECTION
3
.
�
Section
237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to
read as follows:

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"
(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:

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(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;

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(2)
�
$11,000,000 shall
be allocated to the convention center enterprise special fund established under
section 201B-8;

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(3)
�
An allocation
shall be deposited into the tourism emergency special fund, established in
section 201B-10, in a manner sufficient to maintain a fund balance of
$5,000,000 in the tourism emergency special fund; [
and
]

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(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;

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(B)
�
Planning
,
construction, and repair of facilities; and

���������
(C)
�
Operation
and
maintenance costs of public lands, including beaches,
connected
with enhancing the visitor experience[
.
]
;
and

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(5)
�
$
shall be allocated to the environmental stewardship fee special fund
established under section 171-E.

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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 IV

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SECTION 4.
�
The department of land and natural resources
shall submit a report on the creation and implementation of a environmental
stewardship fee strategic plan and timetable indicating how the objectives and
policies of the environmental stewardship fee program will be pursued and
implemented, including its findings, recommendations, and any proposed
legislation, to the legislature no later than December 1, 2025.

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SECTION 5.
�
There is appropriated out of the
environmental stewardship fee special fund established under section 171-E,
Hawaii Revised Statutes, the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for
the environmental stewardship fee strategic
plan with a timetable indicating how the objectives and policies established in
part of chapter 171, Hawaii Revised Statutes, will be
pursued and implemented
.

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The sums

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

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SECTION 6.
�

The appropriation made by section 5 of this Act shall not lapse at the
end of the fiscal year for which the appropriation is made; provided further
that all moneys from the appropriation unencumbered as of June 30, 2028, shall
lapse as of that date.

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SECTION
7.
�
There is appropriated out of the
environmental stewardship fee special fund established under section 171-E,
Hawaii Revised Statutes, the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for the following
positions for the environmental stewardship fee program:

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(1)
�
Two full-time equivalent (2.0 FTE) program
specialists;

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(2)
�
One full-time equivalent (1.0 FTE) office
assistant;

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(3)
�
One full-time equivalent (1.0 FTE) clerk V;
and

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(4)
�
One full-time equivalent (1.0 FTE) accountant.

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The sums

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

PART V

����
SECTION 8.
�
In codifying the new sections added by
section 2 and referenced in sections 5, 7, and 11 of this Act, the revisor of
statutes shall substitute appropriate section numbers for the letters used in
designating the new sections in this Act.

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SECTION 9.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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SECTION
10.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 11.
�
This Act, including section 171-E, Hawaii
Revised Statutes, shall take effect on July 1, 2025; provided that part II of
this Act, except section 171-E, Hawaii Revised Statutes, shall take effect on
July 1, 2027.

INTRODUCED BY:

_____________________________

Report Title:

DLNR; Environmental
Stewardship Fee Program; Environmental Stewardship Fee Special Fund; Report;
Appropriation

Description:

Effective
7/1/2027, establishes the Environmental Stewardship Fee Program within the Department
of Land and Natural Resources, through which the Department will collect a fee
from visitors for a license to visit a state park, forest, hiking trail, or
other state natural area.
�
Establishes the
Environmental Stewardship Fee Special Fund effective 7/1/2025.
�
Allocates a certain amount of transient
accommodations tax revenues to the special fund.
�
Requires report to the Legislature on
strategic plan and timetable for objectives and implementation of the
environmental stewardship fee program.
�

Appropriates funds for the environmental stewardship fee strategic plan
and positions for the Environmental Stewardship Fee Program.

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