HB2406 Summary

• Establishes the Climate Health and Environmental Action Special Fund administered by the Department of Land and Natural Resources to prevent and respond to climate crises including wildfires, coastal erosion, droughts, floods, and pollution.

• Imposes an additional $25 per transient accommodation (hotel room, vacation rental, etc.) on top of existing transient accommodations tax rates.

• Allocates revenues from the $25 per-accommodation tax and a portion of other transient accommodations tax revenue to the new Climate Health and Environmental Action Special Fund.

• Narrows transient accommodations tax exemptions by removing blanket exemption for complimentary or free accommodations, except when used for emergency housing during declared disasters or states of emergency.

• Fund revenues directed to wildfire prevention and response, flood prevention, coral reef restoration, emergency water supplies, coastal management, indigenous Hawaiian stewardship practices, and related climate resilience projects with at least 25% allocated as grants to counties and nonprofit organizations.