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Bill Summary · SB 1396

Summary of SB 1396: Relating to Economic Development

Bill Number: SB 1396
Status: Act 096, effective May 27, 2025
Introduced: January 21, 2025
Primary Sponsor: Senator Kouchi
Related Bill: HB 1077 (companion)

Purpose and Intent

SB 1396 aims to enhance economic development in the state by addressing several key areas, including climate change mitigation, cruise fares, and funding for mass transit and natural resources. The bill seeks to create a more sustainable economic framework that supports both tourism and environmental stewardship.

Key Provisions

  1. Climate Change Mitigation:

    • The bill includes provisions aimed at reducing the state's carbon footprint and promoting sustainable practices across various sectors.
  2. Cruise Fares:

    • Adjustments to cruise fares are proposed to ensure that they align with the state’s economic goals while also considering the environmental impact of cruise tourism.
  3. Funding Allocations:

    • Mass Transit Special Fund: Increased funding to improve public transportation infrastructure, making it more efficient and accessible.
    • Special Land and Development Fund: Enhanced financial support for land development projects that prioritize sustainability and responsible resource management.
    • Transient Accommodations Tax: Modifications to the tax structure to ensure that it supports local economic initiatives and environmental conservation efforts.

Affected Parties

  • Tourism Industry: Changes to cruise fares and transient accommodations tax will directly impact businesses in the tourism sector, including hotels and cruise operators.
  • Local Governments: Increased funding for mass transit and land development will provide local governments with resources to implement sustainable projects.
  • Environmental Organizations: The focus on climate change mitigation aligns with the interests of environmental advocacy groups, potentially fostering partnerships for implementation.

Procedural Timeline

  • Introduced: January 21, 2025
  • Passed Final Reading: May 2, 2025, with amendments
  • Enrolled to Governor: May 2, 2025
  • Signed into Law: May 27, 2025

The legislative process included multiple committee reviews and amendments, demonstrating a collaborative effort to refine the bill's provisions. The final passage saw a mix of support and reservations from various representatives, indicating a nuanced discussion around the bill's implications.

Conclusion

SB 1396 represents a significant step toward integrating economic development with environmental sustainability in the state. By addressing critical areas such as climate change, tourism, and funding for essential services, the bill aims to create a balanced approach to economic growth that benefits both the economy and the environment.

Compiled from official sources — confirm details with the bill’s official record.

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