RELATING TO ENVIRONMENTAL STEWARDSHIP FEES.

SB1164

THE SENATE

S.B. NO.

1164

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:

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SECTION 1.
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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.
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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 persons
traveling to enjoy the State's natural resources.
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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.
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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.
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A
regenerative tourism fee has been suggested by the Hawaii tourism authority as
a potential means to obtain these critical resources.
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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.
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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.
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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 of $50 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.
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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.

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

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Part .
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ENVIRONMENTAL STEWARDSHIP FEE PROGRAM

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�171-A
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Definitions.
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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)
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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:

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(A)
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A
valid Hawaii driver's license;

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(B)
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A
valid Hawaii state identification card;

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

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(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
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Environmental Stewardship

fee program; license; signs.
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(a)
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There is established within the department the environmental stewardship
fee program.
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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)
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Beginning on a date established by the department by rule pursuant to
chapter 91, but not before July 1, 2027, 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)
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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
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License; purchase.
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(a)
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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)
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A
mobile application; and

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(2)
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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)
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The amount of the environmental stewardship fee shall be $ ;
provided that the chairperson may increase the fee by rule pursuant to chapter
91 not more frequently than once every five years.

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

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

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

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

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(3)
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Appropriations
made to the fund by the legislature; and

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(4)
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Grants
and gifts made to the fund.

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

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(1)
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With
transparency and accountability; and

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

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(c)
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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.
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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:

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

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(2)
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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)
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Remove
and control invasive species and propagate and plant native species in
state-owned recreational areas utilized by licensees.

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

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(1)
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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)
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The department may allocate moneys to provide cost‑matching funds
for federal grants that satisfy any of the following priorities:

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(1)
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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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(g)
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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)
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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
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Grants; qualifications and conditions.
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(a)
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For purposes of grants awarded pursuant to this part, any organization
requesting a grant shall:

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(1)
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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's experience with the project or in the program area for
which grant moneys are requested; and

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(3)
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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)
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Recipients of grants shall be subject to the following conditions:

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(1)
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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)
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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)
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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)
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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 shall be considered to be 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

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for a period of five years from the
date of termination.

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(c)
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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
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Report to legislature.
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(a)
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No later than twenty days before
the convening of the regular session of 2027 and each year thereafter, the
department shall submit a report to the legislature.

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(b)
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The report shall contain information on ways that the fund restored,
enhanced, and protected Hawaii's state-owned natural resources and 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)
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The department shall publish the reports on its website.

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�171-H
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Rules.
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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."

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SECTION 3.
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The department of land and natural resources shall submit a report on
the creation and implementation of the 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 4.
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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 2025-2026 and the same sum or
so much thereof as may be necessary for fiscal year 2026-2027 to be deposited
into the environmental stewardship fee special fund.

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SECTION 5.
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There is appropriated out of the
environmental
stewardship
fee special fund the sum of $
or so much thereof as may be necessary for fiscal year 2025-2026
and the
same sum or so much thereof as may be necessary for fiscal year 2026-2027
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.
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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.
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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 2025-2026 and the same sum or
so much thereof as may be necessary for fiscal year 2026-2027 for the
establishment of the following positions for the environmental stewardship fee
program:

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

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

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

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(4)
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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.

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SECTION 8.
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In codifying the new sections added by section 2 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.
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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.
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This Act 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; E
nvironmental
Stewardship
Fees; Report;
Appropriations

Description:

Establishes
the E
nvironmental Stewardship
Fee
Program within the Department of Land and Natural Resources, through which the
DLNR shall, after 7/1/27, collect a fee from visitors for a license to visit a
state park, forest, hiking trail, or other state natural area.
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Establishes the E
nvironmental
Stewardship
Fee Special
Fund.
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Requires a report to the
Legislature.
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Appropriates funds.

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