Four state laws take effect Jan. 1, 2026, affecting tourism taxes, DUI penalties, AI limits and minimum wages. Hawaii raises its Transient Accommodations Tax to fund climate resilience projects. Utah permits judges to bar those convicted of extreme DUI (BAC 0.16+) from buying alcohol. Texas limits abusive uses of AI, and California’s minimum wage increases to $16.90 per hour.
From Hawaii’s 'Green Fee' to California’s Wage Hike: 4 State Laws Taking Effect Jan. 1, 2026
Beginning Jan. 1, 2026, four state laws across the U.S. take effect that reshape rules on tourism taxes, drunken-driving penalties, artificial intelligence and the minimum wage. These measures illustrate how states are using policy tools to address climate resilience, public safety, emerging technology and worker pay.
Hawaii — Tourist Tax Increase to Fund Resilience
Hawaii will raise its Transient Accommodations Tax (TAT) from 10.25% to 11% on Jan. 1. The 0.75-percentage-point increase — dubbed the "Green Fee" by Gov. Josh Green (D) — applies to operators of tourist accommodations, travel brokers, agents and tour packagers. The state estimates the increase will generate roughly $100 million a year to fund environmental stewardship, climate resilience and sustainable tourism projects. Hawaii’s Department of Business, Economic Development and Tourism reported more than 9.6 million visitors in 2023, a 4.6% increase over 2022, and officials say the fee will help ongoing recovery and resilience efforts, including work in Lahaina on Maui after the 2023 wildfires.
Utah — Judges Can Bar Some DUI Convicts From Buying Alcohol
Under H.B. 437, signed by Gov. Spencer Cox (R), Utah judges may designate people convicted of an "extreme" DUI as an "interdicted person" and prohibit them from purchasing alcohol. The law defines extreme DUI as having a blood or breath alcohol content (BAC) of 0.16 or higher — more than triple Utah’s legal limit of 0.05. State data from the Commission on Criminal and Juvenile Justice show DUI charges fell from 908 in 2022 to 847 in 2023, while alcohol-related crashes and fatalities dropped from 69 to 47 in the same period.
Texas — Responsible AI Governance Act Sets New Limits
The Responsible AI Governance Act (H.B. 149), signed by Gov. Greg Abbott (R), establishes statewide limits on certain AI uses. The law bars using AI to produce sexually explicit content or child sexual abuse material, to obtain biometric data without consent, and to manipulate behavior in ways that incite or encourage self-harm. Texas joins more than a dozen states that have enacted AI-related rules; the broader debate continues over whether federal standards should preempt state laws.
California — Minimum Wage Rises to $16.90 an Hour
California’s minimum wage will increase to $16.90 per hour on Jan. 1, 2026 — a $0.40 raise calculated by the California Department of Finance, which adjusts the minimum wage for inflation. The increase applies to hourly workers and to salaried employees who are not eligible for overtime; the new annual minimum salary threshold will be $70,304, up from $68,640. Separate, higher wage floors remain in place for some sectors: as of April 2024, fast-food workers in California were subject to a minimum of at least $20 per hour, and certain health-care roles have inflation-adjusted minimums.
Why it matters: These state-level changes reflect efforts to fund climate and recovery projects, strengthen public-safety penalties, regulate emerging technologies and protect worker pay — all areas where states are often policy laboratories.
