RELATING TO TRANSPORTATION.

SB3289

THE SENATE

S.B. NO.

3289

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to TRANSPORTATION
.

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

����
SECTION
1
.
�
Section 37-79, Hawaii Revised Statutes, is
amended to read as follows:

����
"[
[
]�37-79[
]
]
�

Climate change and tourism destination management;
maritime purposes
and uses;
projects; budget
[
request.
]

requests.
�
(a)
�
The governor shall request, in the budget or
the supplemental budget submitted to the legislature pursuant to section 37-71
or 37-72, that an amount of general funds that approximates the additional
revenue generated by any increase to the transient accommodations tax rates
pursuant to section 237D-2(a)(6) and (c)(4) beginning on January 1, 2026, and
section 237D-2(e) beginning on July 1, 2026, [
and by assessment of the
transient accommodations tax on gross rental proceeds derived from cruise fares
pursuant to section 237D-2(a)
] be expended equally to advance specific
projects to:

����
(1)
�
Protect, manage, and restore the
State's natural resources, including native forests, native plants and animals,
aquatic resources, coastal lands, and freshwater resources;

����
(2)
�
Increase the resilience of structures
and infrastructure to natural and climate-related disasters, such as hurricanes
and sea level rise, and perform hazard mitigation activities, such as wildfire
and flood mitigation; and

����
(3)
�
Improve the visitor experience,
mitigate the impacts of tourism on the natural environment, ensure that the
State's natural resources are maintained for future residents and visitors, and
support destination management, such as park improvements and beach
improvement, nourishment, and maintenance projects.

����
(b)
�
The governor shall request, in the budget or
the supplemental budget submitted to the legislature pursuant to section 37-71
or 37-72, that an amount of general funds that approximates the additional
revenue generated by the assessment of the transient accommodations tax on
gross rental proceeds derived from cruise fares pursuant to section 237D-2(a)
be expended for maritime purposes and uses, including:

����
(1)
�
Reducing greenhouse gas emissions
and pollutants through increased shore power connectivity;

����
(2)
�
Mitigating and adapting to sea level
rise in the State's harbors;

����
(3)
�
Increasing the resilience of
maritime structures and infrastructure; and

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(4)
�
Addressing maritime environmental
issues, as determined by the department of transportation.
"

����
SECTION

2
.
�
Section 237D-1,
Hawaii Revised Statutes, is amended by amending the definition of "cruise
fare" to read as follows:

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""Cruise
fare" means the [
total
] amount paid by a transient for a cruise
ship cabin on a cruise ship[
, inclusive of any mandatory fees imposed by a
cruise ship operator, owner, or representative thereof on a transient for the
use of shipboard services, facilities, meals, and onboard entertainment, but
]
.
�
"Cruise fare"
does not include [
optional
]
charges for shipboard services,
facilities,
meals, excursions, [
and
]
onboard entertainment [
beyond the mandatory fee amount.
]
,
transportation, and other ancillary fees.
"

����
SECTION
3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION
4.
�
This Act shall take effect upon its
approval.

INTRODUCED BY:

_____________________________

Report Title:

DOT;
Governor; Transient Accommodations Tax; Cruise Ships; Cruise Fares; Budget
Request; Maritime Purposes and Uses

Description:

Requires
the Governor to request in the executive budget or supplemental budget that an
amount of general funds that approximates the additional revenue generated by
assessing the Transient Accommodations Tax on gross rental proceeds derived
from cruise fares be expended for maritime purposes and uses, including
addressing maritime environmental issues, as determined by the Department of
Transportation, rather than be expended as part of the green fee.
�
Amends the definition of "cruise
fares" with respect to the Transient Accommodations Tax.

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