HB 326 Summary

• Changes transient accommodations tax distribution to allocate $82,000,000 to the tourism special fund with annual adjustments based on the Honolulu consumer price index (CPI-U), replacing previous fixed allocations.

• Reallocates 45 percent of remaining revenues to counties (Kauai 14.5%, Hawaii 18.6%, Honolulu 44.1%, Maui 22.8%) instead of fixed dollar amounts, allowing distributions to increase or decrease with tax collections.

• Maintains current allocations of $26,500,000 to convention center enterprise special fund, $3,000,000 to special land and development fund, and $1,500,000 to Turtle Bay conservation easement special fund.

• Directs the state director of finance to retain funds from the 45 percent county allocation to cover any shortfalls in county public employers' annual required contributions to the separate trust fund established under section 87A-42.

• Effective July 1, 2017.