HB1486.DOC

SECTION 1. The legislature finds that the Hawaiian culture is used as a major driver for tourism in the islands. Many hotels incorporate the Aloha spirit, local entertainers, and native imagery in the form of paintings and photography to welcome worldwide visitors. By generously sharing the Hawaiian culture with many tourists, it is only right for the tourism industry to give a portion of the revenue generated back to the Hawaiian people. Moreover, millions of tourists visit the Hawaiian Islands annually. In 2015, a record of 8.6 million visitors came to Hawai‘i. Lodging is the largest expenditure category for visitors, spending $6,300,000,000 in 2015.

The legislature further finds that the transient accommodations tax is a 9.25 per cent tax levied on gross rental income derived from renting living accommodations for one hundred eighty consecutive days or fewer. In fiscal year 2015, the transient accommodations tax generated $421,000,000. Portions of the transient accommodations tax are allocated to the counties and various special funds relating to tourism and conservation. The remainder is deposited into the general fund. Currently, $1,000,000 of the money allocated to the tourism special fund is earmarked to operate a Hawaiian center and the museum of Hawaiian music and dance at the Hawai‘i Convention Center. However, this center and museum are currently not in existence. The legislature believes this money should be allocated to support organizations and programs that enhance, strengthen, and perpetuate Hawaiian culture and health in communities.

To address these issues, Senate Resolution No. 60, Regular Session of 2014, created a native Hawaiian health task force to specifically improve the health of Native Hawaiians with implications for other Pacific Islanders and all people of Hawai‘i. The goal of the task force is to articulate priority areas that will help to advance health equity for Native Hawaiians and, in turn, the health of Hawai‘i's entire population and proposed recommendations to that end. The framework and recommendations discussed were embraced by community members, agencies, government, and individuals in addition to those who view themselves as native-serving institutions. This work was community- and land-focused and emphasizes Native Hawaiian values and aspirations. The task force also recognized the past efforts in this matter. The task force used nā pou kihi as the cultural framework to organize and situate the findings and recommendations of this task force. Consistent with the hale (home) as a metaphor for establishing a healthy and vibrant Native Hawaiian population, nā pou kihi reflects the four corner posts of a hale necessary to support the weight of the hale and everyone who resides under its roof.

One of nā pou kihi, referred to by the task force as ka mālama nohona, focuses on the quality of the environments where Native Hawaiians live, work, learn, play, and age that affect their health and well-being. Native Hawaiian values and practices are rooted in the relationships between and amongst people (kānaka), their physical places (‘āina), and spirituality (ho‘omana). They are exemplified through the traditional values and practices that strive for aloha (compassion and kindness), lōkahi (harmony), and mālama ‘āina (caring for our land and natural resources). Native Hawaiians believe that personal health and well-being are intimately and reciprocally linked to the health and well-being of ‘ohana (family, friends, and community) and ‘āina. Ka mālama nohona (caring for the people around us and the places we share) is essential to promoting the health and well-being of all people in Hawai‘i.

Research findings have identified the beneficial effects of healthy communities on the social, physical, and emotional health of individuals. For example, people who live in communities with access to healthier food options and less fast food establishments; easy and affordable access to recreational facilities, including walking, biking, and hiking trails; safe and low density neighborhoods; opportunities for social networking; and active community members and strong local leadership are more likely to have residents who are not plagued by violence and crime in their neighborhoods or by chronic diseases, such as obesity, diabetes, and stress-related emotional problems. Ensuring healthy communities, neighborhoods, and families of Native Hawaiians will decrease the risk for chronic mental and physical diseases.

The purpose of this Act is to redistribute the revenues from the transient accommodations tax currently allocated to the operation of a Hawaiian center and the museum of Hawaiian music to structural improvements to parks and public facilities to create a space for health promotion activities, physical activities, and creating a native Hawaiian sense of place.

SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) 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) $26,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;

(3) $82,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:

(A) Beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from the tourism special fund for development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii;

(B) Of the $82,000,000 allocated:

(i) $1,000,000 shall be allocated [~~for the operation of a Hawaiian center and the museum of Hawaiian music and dance at the Hawaii convention center; and~~] for structural improvements to parks and public facilities to be determined with community input, including creating space for health promotion activities, physical activities, and creating a Native Hawaiian sense of place; and

(ii) 0.5 per cent of the $82,000,000 shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; and

(C) Of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds 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;

(4) $103,000,000 for fiscal year 2014-2015, $103,000,000 for fiscal year 2015-2016, $103,000,000 for fiscal year 2016-2017, and $93,000,000 for each fiscal year thereafter shall be allocated as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent; provided that commencing with fiscal year 2018-2019, a sum that represents the difference between a county public employer's annual required contribution for the separate trust fund established under section 87A-42 and the amount of the county public employer's contributions into that trust fund shall be retained by the state director of finance and deposited to the credit of the county public employer's annual required contribution into that trust fund in each fiscal year, as provided in section 87A-42, if the respective county fails to remit the total amount of the county's required annual contributions, as required under section 87A-43; and

(5) $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

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.

As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."

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

SECTION 4. This Act shall take effect on July 1, 2017.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1486
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII