REPORT TITLE:
Tourism


DESCRIPTION:
Allows the Convention Center Authority to sunset on June 30,
2000.  Assigns the responsibility to market, operate, manage, and
maintain the Hawaii convention Center facility to the Hawaii
Tourism Authority.  Transfer the Convention Center Capital and
Operations Special Fund to a new Hawaii Convention Center special
fund.  Allows TAT revenues exceeding 5% of the allocation to the
Tourism Special Fund to be used to pay convention center debt
service.

 
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                                                        2776
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TOURISM.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The visitor industry brings almost seven million
 
 2 visitors into the State every year.  It accounts for almost
 
 3 twenty-five per cent of the gross state product and provides over
 
 4 thirty per cent of all civilian jobs.  In light of the State's
 
 5 dependence on tourism, it is extremely important that the
 
 6 development, marketing, and research of this industry be
 
 7 coordinated in a manner consistent with the needs of the State.
 
 8      As part of its economic revitalization plan for the State,
 
 9 the 1998 legislature established a dedicated source of funding
 
10 for tourism marketing and development at a globally competitive
 
11 level, and created the Hawaii tourism authority to oversee the
 
12 fund.  The powers and duties of the Hawaii tourism authority
 
13 include the development and implementation of tourism policy for
 
14 the state, and the formulation and implementation of strategic
 
15 marketing plans for Hawaii's visitor industry.
 
16      The convention center authority was created by statute in
 
17 1988.  Its primary purpose was to review for approval the
 
18 proposed convention center development plan and to supervise all
 
19 development within the convention center district pursuant to the
 

 
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 1 approved convention center development plan, including the
 
 2 development of a convention center facility.  Construction of the
 
 3 convention center, which was administered by the convention
 
 4 center authority, has been completed and the Hawaii convention
 
 5 center is in its second year of operation.
 
 6      It is the responsibility of the convention center authority
 
 7 to operate, manage, and maintain the Hawaii convention center
 
 8 facility.  Marketing services for the Hawaii convention center,
 
 9 however, are currently provided by the Hawaii tourism authority.
 
10 As such, the operations responsibility and the marketing
 
11 responsibility of the center are divided between two state
 
12 agencies.  In the interest of efficiency and effectiveness, these
 
13 responsibilities should fall under the purview of one agency.  As
 
14 the lead state agency for tourism, it is appropriate that these
 
15 responsibilities be assigned to the Hawaii tourism authority.
 
16      The purpose of this Act is to allow the convention center
 
17 authority to sunset on June 30, 2000, as currently provided by
 
18 section 9 of Act 98, Session Laws of Hawaii 1999, to assign the
 
19 responsibility to market, operate, manage, and maintain the
 
20 Hawaii convention center facility to the Hawaii tourism
 
21 authority; to transfer the balance of the Hawaii convention
 
22 center capital and operations special fund to a newly created
 
23 Hawaii convention center special fund; and to assign the funding
 

 
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 1 responsibility for the convention center debt service and
 
 2 operating requirements to the Hawaii tourism authority.
 
 3      SECTION 2.  Chapter 36-27, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§36-27  Transfers from special funds for central service
 
 6 expenses.  Except as provided in this section, and
 
 7 notwithstanding any other law to the contrary, from time to time
 
 8 the director of finance, for the purpose of defraying the
 
 9 prorated estimate of central service expenses of government in
 
10 relation to all special funds, except the:
 
11      (1)  Special summer school and intersession fund under
 
12           section 302A-1310;
 
13      (2)  School cafeteria special funds of the department of
 
14           education;
 
15      (3)  Special funds of the University of Hawaii;
 
16      (4)  State educational facilities improvement special fund;
 
17      (5)  [Convention center capital and operations special fund
 
18           under section 206X-10.5;] Hawaii convention center
 
19           special fund;
 
20      (6)  Special funds established by section 206E-6;
 
21      (7)  Housing loan program revenue bond special fund;
 
22      (8)  Housing project bond special fund;
 
23      (9)  Aloha Tower fund created by section 206J-17;
 

 
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 1     (10)  Domestic violence prevention special fund under section
 
 2           321-1.3;
 
 3     (11)  Spouse and child abuse special account under section
 
 4           346-7.5;
 
 5     (12)  Spouse and child abuse special account under section
 
 6           601-3.6;
 
 7     (13)  Funds of the employees' retirement system created by
 
 8           section 88-109;
 
 9     (14)  Unemployment compensation fund established under
 
10           section 383-121;
 
11     (15)  Hawaii hurricane relief fund established under chapter
 
12           431P;
 
13     (16)  Hawaii health systems corporation special funds;
 
14     (17)  Boiler and elevator safety revolving fund established
 
15           under section 397-5.5;
 
16     (18)  Tourism special fund established under section 201B-11;
 
17     (19)  Department of commerce and consumer affairs' special
 
18           funds;
 
19     (20)  Compliance resolution fund established under section
 
20           26-9;
 
21     (21)  Universal service fund established under chapter 269;
 
22     (22)  Integrated tax information management systems special
 
23           fund under section 231-3.2;
 

 
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 1     (23)  Insurance regulation fund under section 431:2-215;
 
 2     (24)  Hawaii tobacco settlement special fund under section
 
 3           328L-2; and
 
 4     (25)  Emergency budget and reserve fund under section 328L-3;
 
 5 shall deduct five per cent of all receipts of all other special
 
 6 funds, which deduction shall be transferred to the general fund
 
 7 of the State and become general realizations of the State. All
 
 8 officers of the State and other persons having power to allocate
 
 9 or disburse any special funds shall cooperate with the director
 
10 in effecting these transfers. To determine the proper revenue
 
11 base upon which the central service assessment is to be
 
12 calculated, the director shall adopt rules pursuant to chapter 91
 
13 for the purpose of suspending or limiting the application of the
 
14 central service assessment of any fund. No later than twenty days
 
15 prior to the convening of each regular session of the
 
16 legislature, the director shall report all central service
 
17 assessments made during the preceding fiscal year."
 
18      SECTION 3.  Chapter 36-30, Hawaii Revised Statutes, is
 
19 amended by amending subsection (a) to read as follows:
 
20      "(a)  Each special fund, except the:
 
21      (1)  Transportation use special fund established by section
 
22           261D-1;
 
23      (2)  Special summer school and intersession fund under
 

 
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 1           section 302A-1310;
 
 2      (3)  School cafeteria special funds of the department of
 
 3           education;
 
 4      (4)  Special funds of the University of Hawaii;
 
 5      (5)  State educational facilities improvement special fund;
 
 6      (6)  Special funds established by section 206E-6;
 
 7      (7)  Aloha Tower fund created by section 206J-17;
 
 8      (8)  Domestic violence prevention special fund under section
 
 9           321-1.3;
 
10      (9)  Spouse and child abuse special account under section
 
11           346-7.5;
 
12     (10)  Spouse and child abuse special account under section
 
13           601-3.6;
 
14     (11)  Funds of the employees' retirement system created by
 
15           section 88-109;
 
16     (12)  Unemployment compensation fund established under
 
17           section 383-121;
 
18     (13)  Hawaii hurricane relief fund established under chapter
 
19           431P;
 
20     (14)  [Convention center capital and operations special fund
 
21           established under section 206X-10.5;] Hawaii convention
 
22           center special fund;
 
23     (15)  Hawaii health systems corporation special funds;
 
24     (16)  Tourism special fund established under section [201B-
 

 
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 1           11];
 
 2     (17)  Compliance resolution fund established under section
 
 3           26-9;
 
 4     (18)  Universal service fund established under chapter 269;
 
 5     (19)  Integrated tax information management systems special
 
 6           fund;
 
 7     (20)  Insurance regulation fund under section 431:2-215;
 
 8     (21)  Hawaii tobacco settlement special fund under section
 
 9           328L-2; and
 
10     (22)  Emergency and budget reserve fund under section 328L-3;
 
11 shall be responsible for its pro rata share of the administrative
 
12 expenses incurred by the department responsible for the
 
13 operations supported by the special fund concerned."
 
14      SECTION 4.  Chapter 201B, Hawaii Revised Statutes, is
 
15 amended by adding seven new sections to be appropriately
 
16 designated and to read as follows:
 
17      "§201B-   Hawaii convention center special fund.  (a)  There
 
18 is established in the state treasury the Hawaii convention center
 
19 special fund, into which shall be deposited:
 
20      (1)  A portion of the revenues from any transient
 
21           accommodations tax, as provided by section 237D-6.5;
 
22      (2)  Appropriations by the legislature to the Hawaii
 
23           convention center special fund;
 

 
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 1      (3)  Gifts, grants, and other funds accepted by the
 
 2           authority;
 
 3      (4)  All or a portion of all net revenues derived from the
 
 4           operations or use of the Hawaii convention center;
 
 5      (5)  All or a portion of all net revenues derived from the
 
 6           operation of parking and garage facilities and other
 
 7           concessions at the Hawaii convention center;
 
 8      (6)  All or a portion of all net revenues derived from the
 
 9           food and beverage operations at the Hawaii convention
 
10           center; and
 
11      (7)  All proceeds from revenue bonds issued by the
 
12           authority.
 
13      (b)  For purposes of this section, "net revenues" mean all
 
14 remaining revenues after the payment of all ordinary, necessary,
 
15 reasonable, and direct expenses that have been approved by the
 
16 authority or under a budget previously approved by the authority.
 
17      (c)  Moneys in the Hawaii convention center special fund may
 
18 be placed in interest-bearing accounts or otherwise invested by
 
19 the authority until such time as the moneys may be needed.  All
 
20 interest accruing from the investment of these moneys shall be
 
21 credited to the Hawaii convention center special fund.
 
22      (d)  Moneys in the Hawaii convention center special fund
 
23 shall be used by the authority for the following purposes:
 

 
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 1      (1)  Planning, design, improvement, construction, land
 
 2           acquisition, equipment, and furnishing necessary for
 
 3           the development or maintenance of a convention center
 
 4           facility;
 
 5      (2)  Constructing the convention center facility and any
 
 6           public facilities related thereto;
 
 7      (3)  Payment of debt service to revenue bonds issued by the
 
 8           authority for purposes of the convention center,
 
 9           establishment of debt service and other reserves deemed
 
10           necessary by the authority or the State, and
 
11           reimbursement of the state general fund for debt
 
12           service on general obligation bonds issued by the State
 
13           for purposes of the convention center;
 
14      (4)  Operations, maintenance, and improvement of the
 
15           convention center and any public facilities related
 
16           thereto;
 
17      (5)  Up to three per cent of the Hawaii convention center
 
18           special fund may be used for administrative expenses of
 
19           the authority; and
 
20      (6)  Any other purposes deemed necessary by the authority
 
21           for the purpose of planning, improving, developing,
 
22           operating, and maintaining the convention center
 
23           facility.
 

 
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 1      §201B-    Hawaii convention center district development
 
 2 plan.  (a)  The authority shall review for approval the
 
 3 convention center district development plan for development
 
 4 within the convention center district.  In its review of any
 
 5 proposed convention center district development plan pursuant to
 
 6 this chapter, the authority shall apply the criteria of the
 
 7 convention center district rules and any criteria for development
 
 8 within the convention center district established by the
 
 9 legislature.
 
10      (b)  The authority may enter into cooperative agreements
 
11 with qualified persons or public agencies, where the powers,
 
12 services, and capabilities of such persons or agencies are deemed
 
13 necessary and appropriate by the authority to assist its review
 
14 of the development of the convention center district development
 
15 plan.
 
16      (c)  Whenever possible, the convention center district
 
17 development plan shall be consistent with federal, state, and
 
18 county plans.  Consideration shall be given to state goals and
 
19 policies, adopted state plan or land use guidance policies,
 
20 county general plans, development plans, and ordinances.
 
21      §201B-    Convention center district rules.  Pursuant to
 
22 chapter 91, the authority shall adopt rules to provide a plan for
 
23 all development within the convention center district which, upon
 

 
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 1 adoption of the rules, shall supersede all inconsistent
 
 2 ordinances and rules relating to health, safety, building,
 
 3 planning, zoning, land use, land development, and flood plain
 
 4 management, including mitigation and permitting, and provision of
 
 5 access and utilities thereto.  Any development plan providing for
 
 6 a development within the convention center district that has been
 
 7 approved by the authority shall be made a part of, and shall have
 
 8 the same force and effect as, the rules.  Rules adopted under
 
 9 this section shall follow existing laws, rules, ordinances, and
 
10 regulations as closely as is consistent with standards meeting
 
11 minimum requirements of good design, pleasant amenities, health,
 
12 safety, and coordinated development, and accomplishment of the
 
13 purposes of this chapter.
 
14      For purposes of chapters 501, 502, and 514A, the authority
 
15 may certify maps and plans of lands and real property interests
 
16 comprising the convention center district as having complied with
 
17 applicable laws and ordinances relating to consolidation,
 
18 subdivision of lands, and condominium property regimes, and such
 
19 maps and plans shall be accepted for registration or recordation
 
20 by the land court and registrar.
 
21      §201B-    Agreement with developer.  (a)  The authority may
 
22 enter into an agreement with a developer for the reconstruction,
 
23 rehabilitation, improvement, alteration, or repair of the
 

 
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 1 convention center facility and all other improvements.  The
 
 2 agreement shall include provision for access to, or ownership of,
 
 3 adequate parking facilities within the convention center district
 
 4 to accommodate the activities of the convention center facility.
 
 5 The development and construction of the improvements within the
 
 6 convention center district shall conform with the convention
 
 7 center development plan approved by the authority.
 
 8      (b)  As a condition and consideration of the right to
 
 9 develop the real property within the convention center district
 
10 under the agreement, pursuant to this chapter, the developer
 
11 shall negotiate with the State for the transfer of a marketable
 
12 real property interest in the convention center facility to the
 
13 State with warranty of title free and clear of all encumbrances,
 
14 subject to declaration of condominium property regime, if any,
 
15 and to such encumbrances and easements as shall be acceptable to
 
16 the State.
 
17      §201B-    Use of public lands.  Any provision of chapter 171
 
18 to the contrary notwithstanding, the governor may set aside,
 
19 transfer, convey, or lease public lands wherever situated and
 
20 whether or not set aside to any department or agency of the State
 
21 or any political subdivision of the State, to the authority for
 
22 its use.
 
23      §201B-    Public projects.  Any project or activity of any
 

 
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 1 county or agency of the State in the convention center district
 
 2 shall be constructed, renovated, or improved in consultation with
 
 3 the authority.
 
 4      §201B-    Convention center facility-booking policy.  (a)
 
 5 The effectiveness of the convention center facility is to be
 
 6 determined by its ability to generate new tourism revenues for
 
 7 the State and not its ability to generate revenues to support its
 
 8 operations.  The development of the convention center was
 
 9 financed by the sale of bonds that would be repaid by the
 
10 transient accommodations tax.
 
11      (b)  First priority booking at the convention center
 
12 facility may be given to conventions, trade shows, and other out-
 
13 of-state bookings that will result in hotel room bookings or
 
14 generate new tourism revenues for the State by new business or
 
15 nonresident spending.
 
16      (c)  Second priority booking at the convention center
 
17 facility may be given to small meetings, trade or consumer shows,
 
18 entertainment events, or local events open to the public.
 
19      (d)  Notwithstanding the priorities provided in this
 
20 section, the authority may book any event at the convention
 
21 center facility at any time or reschedule a booked event whenever
 
22 the authority determines that the event will be in the best
 
23 interest of the State or the convention center facility."
 

 
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 1      SECTION 5.  Section 201B-1, Hawaii Revised Statutes, is
 
 2 amended by adding six new definitions to be appropriately
 
 3 inserted and to read as follows:
 
 4      ""Convention center facility" or "Hawaii convention center"
 
 5 means any combination of land, buildings, and improvements
 
 6 thereon, suitable for use as a convention center; any other
 
 7 structure or facility required or useful for the operation of a
 
 8 convention center facility, including, but not limited to,
 
 9 commercial, office, community service, parking, garage, and other
 
10 supporting service structures; and all necessary, useful, and
 
11 related equipment, furnishings, and appurtenances.
 
12      "County" means the city and county of Honolulu, and the
 
13 counties of Hawaii, Kauai, and Maui.
 
14      "Developer" means any person, partnership, cooperative,
 
15 firm, nonprofit or for-profit corporation, or public agency
 
16 possessing the competence, expertise, experience, and resources,
 
17 including financial, personal, and tangible resources, required
 
18 to effectuate, directly or through other developers, the
 
19 development of a convention center, including planning, design,
 
20 and construction.
 
21      "Local governing body" means the county council of the city
 
22 and county of Honolulu.
 
23      "Qualified person" means any individual, partnership,
 

 
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 1 corporation, public agency, or any combination or association of
 
 2 the foregoing, possessing the competence, expertise, experience,
 
 3 and resources, including financial, personnel, and tangible
 
 4 resources, required for the purposes of a project and such other
 
 5 qualifications as may be deemed desirable by the authority in
 
 6 administering this chapter and which enters into a project
 
 7 agreement with the authority.
 
 8      "Real property" means lands, structures, and interests in
 
 9 land, including lands under water and riparian rights, space
 
10 rights, and air rights and any and all other things and rights
 
11 usually included within the term.  Real property also means any
 
12 and all interests in such property less than full title, such as
 
13 easements, incorporeal hereditaments and every estate, interest,
 
14 or right, legal or equitable, including terms for years and liens
 
15 thereon by way of judgments, mortgages, or otherwise."
 
16      SECTION 6.  Section 201B-2, Hawaii Revised Statutes, is
 
17 amended as follows:
 
18      (1)  By amending subsection (b) to read as follows:
 
19      "(b)  The authority shall be headed by a board of directors
 
20 which consists of [ten] thirteen public, voting members, [one
 
21 public, nonvoting member, one] and two ex officio voting [member,
 
22 and one ex officio nonvoting member;] members; provided that:
 
23      (1)  [Ten] Thirteen public, voting members shall be
 

 
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 1           appointed by the governor as provided in section 26-34,
 
 2           except as otherwise provided by law;
 
 3      (2)  The [ten] thirteen public, voting members shall be
 
 4           composed of one representative each from the city and
 
 5           county of Honolulu and the counties of Hawaii, Kauai,
 
 6           and Maui; the remaining public members shall be
 
 7           appointed at-large;
 
 8      (3)  Of the [ten] thirteen public, voting members, two shall
 
 9           be appointed by the governor from a list of three names
 
10           nominated by the president of the senate, and two shall
 
11           be appointed by the governor from a list of three names
 
12           nominated by the speaker of the house of
 
13           representatives;
 
14      (4)  At least six of the [ten] thirteen public, voting
 
15           members shall have knowledge, experience, and expertise
 
16           in the area of visitor industry management, marketing,
 
17           and promotion[;], and the remaining seven public voting
 
18           members shall have knowledge, interest, and experience
 
19           in business related fields;
 
20      (5)  The governor shall make appointments to ensure the
 
21           fulfillment of all requirements;
 
22      (6)  The director of business, economic development and
 
23           tourism, or a designated representative, shall be an ex
 

 
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 1           officio voting member; and
 
 2      (7)  The director of transportation or a designated
 
 3           representative, shall be an ex officio [nonvoting]
 
 4           voting member[; and
 
 5      (8)  The governor shall appoint a public, nonvoting
 
 6           member]."
 
 7      (2)  By amending subsections (d) and (e) to read as follows:
 
 8      "(d)  The board shall elect a chairperson from among the
 
 9 voting members.  The director of business, economic development,
 
10 and tourism or the director of transportation shall not be
 
11 chairperson of the board.
 
12      (e)  [Six] Eight voting members shall constitute a quorum,
 
13 whose affirmative vote shall be necessary for all actions by the
 
14 authority.  The members shall serve without compensation, but
 
15 shall be reimbursed for expenses, including traveling expenses,
 
16 necessary for the performance of their duties."
 
17      SECTION 7.  Section 201B-3, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "[[]§201B-3[]]  Powers.  Except as otherwise limited by this
 
20 chapter, the board may:
 
21      (1)  Sue and be sued;
 
22      (2)  Have a seal and alter the same at pleasure;
 
23      (3)  Make and execute contracts and all other instruments
 

 
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 1           necessary or convenient for the exercise of its powers
 
 2           and functions under this chapter, provided that the
 
 3           authority may enter into contracts and agreements,
 
 4           including license agreements for the use of the Hawaii
 
 5           convention center, for a period of up to five years;
 
 6      (4)  Make and alter bylaws for its organization and internal
 
 7           management;
 
 8      (5)  Adopt rules [in accordance with chapter 91] with
 
 9           respect to its projects, operations, properties, and
 
10           facilities[;], including the convention center
 
11           facility, that shall be exempt from the public notice
 
12           and public hearing requirements of chapter 91;
 
13      (6)  Through its executive director represent the authority
 
14           in communications with the governor and with the
 
15           legislature;
 
16      (7)  Through its executive director appoint officers,
 
17           agents, and employees, prescribe their duties and
 
18           qualifications, and fix their salaries, without regard
 
19           to chapters 76, 77, and 78;
 
20      (8)  Through its executive director purchase supplies,
 
21           equipment, or furniture;
 
22      (9)  Through its executive director allocate the space or
 
23           spaces which are to be occupied by the authority and
 

 
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 1           appropriate staff;
 
 2     (10)  Engage the services of qualified persons to implement
 
 3           the State's tourism marketing plan or portions thereof
 
 4           as determined by the board;
 
 5     (11)  Engage the services of consultants on a contractual
 
 6           basis for rendering professional and technical
 
 7           assistance and advice;
 
 8     (12)  Procure insurance against any loss in connection with
 
 9           its property and other assets and operations in such
 
10           amounts and from such insurers as it deems desirable;
 
11     (13)  Contract for, and accept gifts or grants in any form
 
12           from any public agency or any other source;
 
13     (14)  Create a vision and develop a long range plan for
 
14           tourism in Hawaii, including product development,
 
15           infrastructure, and diversification issues;
 
16     (15)  Develop, coordinate, and implement state policies and
 
17           directions for tourism and related activities taking
 
18           into account the economic, social, and physical impacts
 
19           of tourism on the State;
 
20     (16)  Develop and implement the state tourism strategic
 
21           marketing plan, which shall be updated every three
 
22           years, to promote and market the State as a desirable
 
23           visitor destination;
 

 
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 1     (17)  Have a permanent, strong focus on marketing and
 
 2           promotion;
 
 3     (18)  Conduct market development-related research as
 
 4           necessary;
 
 5     (19)  Coordinate all agencies and advise the private sector
 
 6           in the development of tourism-related activities and
 
 7           resources;
 
 8     (20)  Work to eliminate or reduce barriers to travel in order
 
 9           to provide a positive and competitive business
 
10           environment, including coordinating with the department
 
11           of transportation on issues affecting airlines and air
 
12           route development;
 
13     (21)  Market and promote sports-related activities and
 
14           events;
 
15     (22)  Coordinate the development of new products with the
 
16           public and private sectors, including the development
 
17           of sports, culture, health, education, business, and
 
18           eco-tourism;
 
19     (23)  Establish a public information and educational program
 
20           to inform the public of tourism and tourism-related
 
21           problems;
 
22     (24)  Encourage the development of tourism educational,
 
23           training, and career counseling programs;
 

 
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 1     (25)  Establish a program to monitor, investigate, and
 
 2           respond to complaints about problems resulting directly
 
 3           or indirectly from the tourism industry and taking
 
 4           appropriate action as necessary; [and]
 
 5     (26)  Inspect and approve development within the convention
 
 6           center district for compliance with convention center
 
 7           development plans and rules;
 
 8     (27)  Enter into contracts for the professional marketing,
 
 9           management, operation, and maintenance of the
 
10           convention center facility;
 
11     (28)  Cause a developer to prepare plans, specifications, and
 
12           designs for the construction, reconstruction,
 
13           rehabilitation, improvement, alteration, or repair of
 
14           any construction project related to the convention
 
15           center facility, and from time to time, to modify such
 
16           plans, specifications, or designs; provided that the
 
17           plans, specifications, or designs shall be subject to
 
18           review and approval by the authority;
 
19     (29)  Procure insurance against any loss and any liability in
 
20           connection with the Hawaii convention center and other
 
21           related assets and operations in such amounts and from
 
22           such insurers as it deems desirable;
 
23     (30)  Upon the request of the authority and the approval of
 

 
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 1           the governor, condemn any real property interests as
 
 2           the authority deems necessary for the development of a
 
 3           convention center facility pursuant to chapter 101;
 
 4           provided that the valuation of any such property
 
 5           acquired pursuant to the exercise of the authority's
 
 6           power under this subsection shall be done without
 
 7           regard to any increase or decrease in the value of the
 
 8           property resulting from the application of this
 
 9           chapter; and provided further that property acquired by
 
10           condemnation shall not be subject to chapter 171;
 
11     (31)  On behalf of the State, accept the authority to market,
 
12           manage, operate, and maintain the Hawaii convention
 
13           center facility;
 
14     (32)  The authority, with the approval of the governor, may
 
15           issue from time to time revenue bonds, including
 
16           refinancing bonds for the purpose of paying or retiring
 
17           or providing for the retirement of bonds previously
 
18           issued by the State for purposes of the convention
 
19           center facility, in amounts not exceeding the total
 
20           amount of bonds authorized to be issued by the
 
21           legislature for any of the authority's purposes. All
 
22           revenue bonds shall be issued pursuant to part III of
 
23           chapter 39, except as provided in this chapter.  All
 

 
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 1           revenue bonds shall be issued in the name of the
 
 2           authority and not in the name of the State.  The final
 
 3           maturity date of the revenue bonds may be any date not
 
 4           exceeding thirty years from the date of issuance;
 
 5     (33)  Pledge or assign all or any part of the receipts and
 
 6           revenues of the authority;
 
 7     (34)  Set and collect an amount within a range of rents,
 
 8           fees, charges, or other payments for the lease, use,
 
 9           occupancy, or disposition of the convention center
 
10           facility acquired, constructed, or reconstructed by the
 
11           authority pursuant to this chapter; provided that the
 
12           authority may waive or substantially discount any rent,
 
13           fee, charge, or other payment at an open public meeting
 
14           subject to the requirement of chapter 92 for a specific
 
15           event whenever the authority determines that the waiver
 
16           or discount is in the best interest of the convention
 
17           center facility or the State by attracting new tourist
 
18           markets or conventioneers;
 
19     (35)  Acquire, lease as lessee or lessor, own, rent, hold,
 
20           and dispose of real and personal property in the
 
21           exercise of its powers and the performance of its
 
22           duties under this chapter;
 
23     (36)  Acquire by purchase, lease, or otherwise, and develop,
 

 
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 1           construct, operate, own, manage, repair, reconstruct,
 
 2           enlarge, or otherwise effectuate, either directly or
 
 3           through developers, a convention center facility;
 
 4     (37)  Reimburse the state general fund for debt service on
 
 5           general obligation bonds or reimbursable general
 
 6           obligation bonds issued by the State for purposes of
 
 7           the Hawaii convention center; in accordance with a
 
 8           schedule determined by the director of finance, with
 
 9           the approval of the governor, as may be in the best
 
10           interest of the state;
 
11     (38)  By itself, or in combination or association with
 
12           qualified persons, by any form of request for
 
13           proposals, as determined by the board, any law to the
 
14           contrary notwithstanding, solicit, accept, review,
 
15           reject, modify, or approve proposals, and thereafter
 
16           enter into agreements, for the initiation, undertaking,
 
17           supervision and regulation of the design, development,
 
18           financing, marketing, operation, or maintenance of the
 
19           convention center facility, and any related
 
20           development;
 
21     (39)  Administer the tourism special fund and the Hawaii
 
22           convention center special fund; and
 
23    [(26)] (40)  Do any and all things necessary to carry out its
 

 
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 1           purposes and exercise the powers given and granted in
 
 2           this chapter."
 
 3      SECTION 8.  Section 201B-7, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "[[]§201B-7[]]  Tourism-related activities.(a)  The
 
 6 authority may enter into contracts and agreements that include
 
 7 the following:
 
 8      (1)  Tourism promotion, marketing, and development;
 
 9      (2)  Market development-related research;
 
10      (3)  Product development and diversification issues;
 
11      (4)  Promotion, development, and coordination of sports-
 
12           related activities and events;
 
13      (5)  Reduction of barriers to travel;
 
14      (6)  Tourism public information and educational programs;
 
15      (7)  Programs to monitor and investigate complaints about
 
16           the problems resulting from the tourism industry in the
 
17           State; [and]
 
18      (8)  Marketing, management, operation, or maintenance of the
 
19           Hawaii convention center; and
 
20     [(8)] (9)  Any and all other activities necessary to carry
 
21           out the intent of this chapter[;
 
22 provided that for the purposes of continuity, the Hawaii Visitors
 
23 and Convention Bureau shall be the designated agency to conduct
 

 
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 1 the marketing and promotion of the State until the end of fiscal
 
 2 year 1998-1999 or until a date specified by the board].
 
 3      (b)  The authority staff shall be responsible for monitoring
 
 4 and facilitating any and all functions developed in accordance
 
 5 with subsection (a)."
 
 6      SECTION 9.  Section 201B-11, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "[[]§201B-11[]]  Tourism special fund.(a)  There is
 
 9 established in the state treasury the tourism special fund, into
 
10 which shall be deposited:
 
11      (1)  A portion of the revenues from any transient
 
12           accommodations tax, as provided by section 237D-6.5;
 
13           and
 
14      (2)  Appropriations by the legislature to the tourism
 
15           special fund; and
 
16      (3)  Gifts, grants, revenues, receipts and other funds
 
17           accepted by the authority.
 
18      (b)  Moneys in the tourism special fund may be placed in
 
19 interest-bearing accounts or otherwise invested by the authority
 
20 until such time as the moneys may be needed.  All interest
 
21 accruing from the investment of these moneys shall be credited to
 
22 the tourism special fund.
 
23      (c)  Moneys in the tourism special fund shall be used by the
 

 
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 1 authority for the purposes of this chapter, provided that not
 
 2 more than three per cent of this amount shall be used for
 
 3 administrative expenses; provided further that of this amount the
 
 4 sum of $15,000 shall be made available for a protocol fund to be
 
 5 expended at the discretion of the executive director; provided
 
 6 further that moneys in the tourism special fund shall be used for
 
 7 the salaries and expenses of the office of tourism established in
 
 8 section 201-92.
 
 9      (d)  In the event that amounts to be deposited into the
 
10 tourism special fund from the revenues collected under subsection
 
11 (a)(1) in a fiscal year exceed five per cent of the appropriated
 
12 amount for that fiscal year, such excess amount may be
 
13 transferred by the director of finance, with the approval of the
 
14 governor, to the Hawaii convention center special fund for the
 
15 purpose of reimbursement of the state general fund for debt
 
16 service on general obligation bonds issued by the State for
 
17 purposes of the convention center facility."
 
18      SECTION 10.  Section 201B-12, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "[[]§201B-12[]]  Exemption of authority from taxation and
 
21 Hawaii public procurement code.(a)  All revenues and receipts
 
22 derived by the authority from any project or a project agreement
 
23 or other agreement pertaining thereto shall be exempt from all
 

 
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 1 state taxation.  Any right, title, and interest of the authority
 
 2 in any project shall also be exempt from all state taxation.
 
 3 Except as otherwise provided by law, the interest of a qualified
 
 4 person or other user of a project or a project agreement or other
 
 5 agreements related to a project shall not be exempt from taxation
 
 6 to a greater extent than it would be if the costs of the project
 
 7 were directly financed by the qualified person or user.
 
 8      (b)  The authority shall not be required to pay assessments
 
 9 levied by any county.  This exemption shall apply only with
 
10 respect to the real property interest of the authority within the
 
11 convention center district and the business of the authority
 
12 relating to the real property interest.
 
13      [(b)] (c)  The authority shall not be subject to [chapter]
 
14 chapters 103 and 103D and any and all other requirements of law
 
15 for competitive bidding for project agreements, construction
 
16 contracts, concessions, goods and services, lease and sublease
 
17 agreements, or other contracts unless a project agreement with
 
18 respect to a project otherwise shall require."
 
19      SECTION 11.  Section 201B-14, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "[[]§201B-14[]]  Declaration of public function, purpose,
 
22 and necessity.  The powers and functions granted to and exercised
 
23 by the Hawaii tourism authority under this chapter are declared
 

 
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 1 to be public and governmental functions, exercised for a public
 
 2 purpose, and matters of public necessity.  All real and other
 
 3 property and privileges acquired and used by or on behalf of the
 
 4 State by the authority under this chapter shall and are declared
 
 5 to be acquired and used for public and governmental purposes as a
 
 6 matter of public necessity."
 
 7      SECTION 12.  Transfer of funds from Hawaii convention center
 
 8 capital and operations special fund.  The director of finance
 
 9 shall transfer to the credit of the Hawaii convention center
 
10 special fund, on the effective date of this Act, any unexpended
 
11 or unencumbered amount to be determined by the director of
 
12 finance in the Hawaii convention center capital and operations
 
13 special fund scheduled for repeal on June 30, 2000.  The director
 
14 of finance shall subsequently transfer to the credit of the
 
15 Hawaii convention center special fund, the remaining unexpended
 
16 or unencumbered balances remaining in the Hawaii convention
 
17 center capital and operations special fund.
 
18      SECTION 13.  All rights, powers, functions, and duties of
 
19 the convention center authority transferred to the Hawaii tourism
 
20 authority.  All officers and employees whose functions are
 
21 transferred by this Act shall be transferred with their functions
 
22 and shall continue to perform their regular duties upon their
 
23 transfer, subject to the state personnel laws and this Act.  The
 

 
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 1 personnel transferred by this Act shall be exempt from chapters
 
 2 76 and 77, Hawaii Revised Statutes.
 
 3      No officer or employee of the State having tenure shall
 
 4 suffer any loss of salary, seniority, prior service credit,
 
 5 vacation, sick leave, or other employee benefit or privilege as a
 
 6 consequence of this Act, and such officer or employee may be
 
 7 transferred or appointed to a civil service position without the
 
 8 necessity of examination; provided that the officer or employee
 
 9 possesses the minimum qualifications for the position to which
 
10 transferred or appointed; and provided that subsequent changes in
 
11 status may be made pursuant to applicable civil service and
 
12 compensation laws.
 
13      An officer or employee of the State who does not have tenure
 
14 and who may be transferred or appointed to a civil service
 
15 position as a consequence of this Act shall become a civil
 
16 service employee without the loss of salary, seniority, prior
 
17 service credit, vacation, sick leave, or other employee benefits
 
18 or privileges and without the necessity of examination; provided
 
19 that such officer or employee possesses the minimum
 
20 qualifications for the position to which transferred or
 
21 appointed.
 
22      If an office or position held by an officer or employee
 
23 having tenure is abolished, the officer or employee shall not
 

 
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 1 thereby be separated from public employment, but shall remain in
 
 2 the employment of the State with the same pay and classification
 
 3 and shall be transferred to some other office or position for
 
 4 which the officer or employee is eligible under the personnel
 
 5 laws of the State as determined by the head of the department or
 
 6 the governor.
 
 7      SECTION 14.  Transfer of functions; effect on deeds, leases,
 
 8 contracts, loans, agreements, permits, or other documents.  All
 
 9 deeds, leases, contracts, loans, agreements, permits, license
 
10 agreements, or other documents executed or entered into by or on
 
11 behalf of the convention center authority pursuant to the
 
12 provisions of the Hawaii Revised Statutes, are reenacted or made
 
13 applicable to the Hawaii tourism authority by this Act, and shall
 
14 remain in full force and effect.  Effective on the date of this
 
15 Act, every reference to the convention center authority therein
 
16 shall be construed as a reference to the Hawaii tourism
 
17 authority.
 
18      SECTION 15.  Transfer of records and equipment between
 
19 agencies.  All appropriations, records, equipment, machines,
 
20 files, supplies, contracts, books, papers, documents, maps, and
 
21 other personal property heretofore made, used, acquired, or held
 
22 by the convention center authority shall be transferred with the
 
23 functions to which they relate; provided that all records,
 

 
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 1 equipment, machines, files, supplies, contracts, books, papers,
 
 2 documents, maps, and other personal property heretofore made,
 
 3 used, acquired, or held by the convention center authority
 
 4 related to all visitor data and research shall be transferred to
 
 5 the department of business, economic development, and tourism.
 
 6      SECTION 16.  It is the intent of this Act not to jeopardize
 
 7 the receipt of any federal aid nor to impair the obligation of
 
 8 the State or any agency thereof to the holders of any bond issued
 
 9 by the State or by any such agency, and to the extent, and only
 
10 to the extent, necessary to effectuate this intent, the governor
 
11 may modify the strict provisions of this Act, but shall promptly
 
12 report any such modification with reasons therefor to the
 
13 legislature at its next session thereafter for review by the
 
14 legislature.
 
15      SECTION 17.  Chapter 237D, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§237D-6.5  Remittances; distribution to counties.(a)  All
 
18 remittances of taxes imposed under this chapter shall be made by
 
19 cash, bank drafts, cashier's check, money order, or certificate
 
20 of deposit to the office of the taxation district to which the
 
21 return was transmitted.
 
22      (b)  Beginning on January 1, 1999 revenues collected under
 
23 this chapter shall be distributed as follows:
 

 
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 1      (1)  17.3 per cent of the revenues collected under this
 
 2 chapter shall be deposited into the [convention center capital
 
 3 and operations special fund established under section 206X-10.5]
 
 4 Hawaii convention center special fund.
 
 5      (2)  37.9 per cent of the revenues collected under this
 
 6 chapter shall be deposited into the tourism special fund
 
 7 established under section 201B-11;
 
 8      (3)  44.8 per cent of the revenues collected under this
 
 9 chapter shall be transferred as follows:  Kauai county shall
 
10 receive 14.5 per cent, Hawaii county shall receive 18l.6 per
 
11 cent, city and county of Honolulu shall receive 44.1 per cent,
 
12 and Maui county shall receive 22.8 per cent.
 
13      All transient accommodations taxes shall be paid into the
 
14 state treasury each month within ten days after collection, and
 
15 shall be kept by the state director of finance in special
 
16 accounts for distribution as provided in this subsection.
 
17      (c)  On or before July 1 of each year or after the
 
18 disposition of any tax appeal with respect to an assessment for
 
19 periods after June 30, 1990, the state director of finance shall
 
20 compute and pay the amount due as provided in subsection (b) to
 
21 the director of finance of each county to become a general
 
22 realization of the county expendable as such, except as otherwise
 
23 provided by law."
 

 
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 1      SECTION 18.  There is appropriated out of the Hawaii
 
 2 convention center special fund the sum of $___________, or so
 
 3 much thereof as may be necessary for fiscal year 2000-2001, to
 
 4 carry out the purposes of the special fund.  The sum appropriated
 
 5 shall be expended by the Hawaii tourism authority.
 
 6      SECTION 19.  There is appropriated out of the Hawaii tourism
 
 7 special fund the sum of $___________, or so much thereof as may
 
 8 be necessary for fiscal year 2000-2001, to carry out the purposes
 
 9 of the special fund.  The sum appropriated shall be expended by
 
10 the Hawaii tourism authority.
 
11      SECTION 20.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 21.  This Act shall take effect on June 29, 2000.
 
14 
 
15                           INTRODUCED BY:  _______________________
 

 
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