Hawaii-2020-SB2696-Introduced

SECTION 1. The legislature finds that each year, Hawaii's reefs, oceans, beaches, and forests provide billions of dollars in value to the economy, supporting the wellbeing of our communities and visitors alike. For our tourism industry, our ecosystems are vital. Inseparable from our culture, our environment is integral to our visitor experience.

The legislature also finds that even though these natural resources are critical for the visitor industry and resident communities, Hawaii invests less than one per cent of its state budget into those assets. Hawaii's total conservation funding gap has been estimated as high as $360 million annually, constituting a major unfunded liability that poses a significant risk to our business climate and our economic resiliency.

The legislature further finds that our State's vital ecosystems and the resources they harbor continue to decline, due to lack of adequate investment in proven and effective conservation approaches. Data demonstrates growing concern that tourism's positive contribution to the economy may not outweigh the impact that visitors have on the environment. Ten million visitors enjoyed the benefits of Hawaii's ecosystem and natural environment in 2019, and the number of visitors is expected to rise. Increased demand on our natural resources requires innovative conservation financing mechanisms focused on reversing the decline in our ecosystems and the associated risks for our visitor industry and communities.

The legislature also finds that innovative financing mechanisms such as green fees are trending around the globe as triple bottom-line solutions to better manage visitor impacts on eco-systems and natural resources. Green fees may be referred to as eco-taxes, tourist taxes, green taxes, and environmental, conservation and tourism levies. In general, green fees require mandatory payments made by visitors to government entities for the explicit purpose of supporting conservation and natural resource management.

By following the benchmarks and mandates required by the Hawaii climate change mitigation and adaptation initiative enacted as Chapter 225P, Hawaii Revised Statutes, and by following the data generated under the Aloha+ Challenge natural resource management goals, the legislature seeks to better understand if and how green fees can accelerate support for these efforts, while ensuring that implementation is fair and beneficial for all.

The purpose of this Act is to appropriate funds for a feasibility and implementation plan focused on the establishment of a green fees program, for the explicit purpose of closing the conservation funding gap and meeting the goals of the Hawaii climate change mitigation and adaptation initiative and the Aloha+ Challenge natural resource management goals.

SECTION 2. (a) The office of planning shall prepare a feasibility and implementation plan to assess a green fee on a per visitor, per stay basis. The plan shall include, but not be limited to the following:

(1) An analysis and breakdown of Hawaii's conservation funding gap that exists in current natural resource and climate change funding relative to meeting the goals set forth in chapter 225P, Hawaii Revised Statutes, and the Aloha+ Challenge natural resource management goals, and the extent to which Hawaii's unfunded conservation liabilities will increase based on the current rate of funding;

(2) An analysis and review of the current utilization of natural resource and climate change funding throughout state departments and agencies;

(3) An examination of all existing tax and fee structures that exists to support climate change mitigation efforts;

(4) An examination of all existing tax and fee structures placed on the visitor accommodation and tourism industries;

(5) A discussion of the advantages or disadvantages of increasing, decreasing, or reallocating existing taxes relative to the option of establishing a new green fee;

(6) Development of proposed green fee rate structures that would be required to close the conservation funding gap over a five-year period;

(7) Consideration of a dedicated bond issuance or other financing mechanism that will ensure the most effective management of funds and result in revenues collected being used explicitly for the purposes of this Act;

(8) Identification of potential short-term and long-term impacts on the Hawaii's tourism industry and overall economic outlook, including but not limited to possible market impacts, economic and workforce considerations; and

(9) Development of a ten-year implementation plan with rollout of fees to begin no later than 2022, including a proposed fee schedule, benchmarks and indicators, and mandatory impact reporting.

(b) The office of planning, in consultation with the Hawaii tourism authority, and the department of land and natural resources, shall create an advisory group made up of stakeholders and industry leaders. This group shall include:

(1) Representatives from relevant state agencies, including the department of budget and finance, department of taxation, department of business, economic development, and tourism;

(2) Business and industry groups;

(3) Non-governmental organizations with an interest in climate change and natural resource protection;

(4) Legislators;

(5) Hawaii climate change mitigation and adaptation commission; and

(6) Any other relevant parties that the office of planning deems necessary to advise in the development of the plan, assist in outreach and engagement efforts, and provide comments upon completion.

(c) The office of planning shall submit an interim report to the legislature of its progress, findings, recommendations and timeline for completion no later than December 31, 2020. The interim report shall also include a preliminary determination of the conservation funding gap amount.

(d) The office of planning shall submit a final report to the legislature of its progress, findings, and recommendations, including proposed legislation for the establishment and implementation of a green fees program, no later than October 31, 2021.

(e) Nothing in this Act shall preclude the office of planning from executing contracts with appropriate entities having expertise in tourist industry green fees.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $300,000 or so much thereof as may be necessary for fiscal year 2020-2021 for a feasibility and implementation plan prepared by the office of planning relating to the establishment of a green fee program in Hawaii.

The sum appropriated shall be expended by the office of planning for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2020.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2696
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII