Committee backs visitor‑fee funding bill for DLNR with community grants, reporting and debt‑service option

The House Committee on Finance on Feb. 21 advanced HB504 HD1, a bill to create a funding stream to support the Department of Land and Natural Resources’ stewardship, management and restoration work funded in part by visitor fees or other dedicated revenues. The committee adopted amendments to clarify eligible uses, add community grant language and reporting requirements, and create an option to direct revenue to a debt‑service fund to support larger projects.

Dawn Chang of the Department of Land and Natural Resources told the committee the appropriation would “assist DLNR in protecting, managing, and restoring valuable resources” and that climate‑driven severe weather, drought and fires have increased the department’s workload. “We need the resources to protect and preserve these most valuable assets that include land and water,” Chang said.

Supporters emphasized a community‑driven grant component. Kevin Chang, executive director of Kuaaina Ulu A'o A¯mo Kua (Koa), told the committee the funds should be distributed to communities as well as government agencies so “they can equally share responsibility and care for our resources.” Multiple nonprofits and coalitions — including the Care for Aina Now coalition, Hawaii Ocean Legislative Task Force, Nature Conservancy, and Climate Protectors Hawaii — testified in favor of the bill and asked for a community grants program and dedicated fund language.

Polling cited by the Nature Conservancy showed visitor willingness to support fees: an in‑state poll noted roughly 70–76% of visitors would pay an annual visitor fee and 85% of repeat visitors said they would. Testimony also cited a legislative study that found an estimated $560,000,000 funding gap for natural resource protection; Melissa Pavlicek of Care for Aina Now estimated revenue potential under different scenarios could be in the hundreds of millions, while noting large uncertainties depending on exact fee structure.

Opponents and commenters raised economic concerns: Jane McMillan of the Tax Foundation of Hawaii noted the bill’s rates were unspecified and said changes could affect tourism demand; Representative Reyes Oda recorded a reservation, saying Hawaii already has a high transient accommodations tax and the visitor industry remains fragile.

Committee amendments adopted in the hearing revise the appropriation section to include language from companion measures (HB1077 and HB752), allow DLNR to use funds for consistent personnel and administrative costs related to programs, require consultation with the Hawaii Tourism Authority and counties on tourism‑related projects, add reporting requirements to the Legislature on fund expenditures, and insert language enabling the fund to support debt service for larger, reimbursable projects.

Why this matters: the bill would create a dedicated revenue stream for resource protection and restoration and formalize community grants to support local stewardship work. Proponents argued federal grants are uncertain and a state revenue source would protect long‑term stewardship capacity.

What’s next: HB504 passed the committee with amendments and will move to the House floor; the committee noted Representative Reyes Oda’s reservation on TAT increases. The committee also directed staff to include community‑grant language and reporting requirements in the final draft.

Ending detail: witnesses included nonprofit coalitions, conservation organizations, and DLNR staff; testimony quantified a large funding gap but did not adopt a single revenue estimate for the proposed fee structure.