STAND. COM. REP. NO. 136

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 873
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred H.B. No.
873 entitled: 

     "A BILL FOR AN ACT RELATING TO AMUSEMENT AND THEME PARKS,"

begs leave to report as follows:

     The purpose of this bill is to encourage the development of
amusement and theme parks by providing assistance to developers
or such parks including negotiation of leases and providing
economic and tax incentives.

     The Department of Business, Economic Development, and
Tourism, Pacific Resource Partnership, and Menehune Magic
testified in support of the bill.  The Department of Land and
Natural Resources, the Hawaii Tourism Authority, and the Hawaii
Coalition Against Legalized Gambling commented on the measure.
The Department of Taxation testified against the bill because of
the disparate treatment of taxable entities, the fact that theme
parks already exist and others are in the planning stages making
the tax exemption unnecessary, and the fact that only the
Department of Taxation has the authority to waive any form of
taxation but is not included in the negotiating process for
developers.

     Your Committee finds that encouraging the development of
amusement and theme parks will provide additional attractions not
only for first time visitors but for repeat visitors looking for
a new experience while in Hawaii.


 
 
                                 STAND. COM. REP. NO. 136
                                 Page 2

 
     Upon further consideration, your Committee has amended this
measure by specifically providing for an exemption from the
general excise tax for construction costs for the development of
amusement or theme parks.  This exemption will be available for
ten years.  In addition, a definition for "amusement or theme
park" was provided.

     As affirmed by the record of votes of the members of your
Committee on Tourism that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
873, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 873, H.D. 1, and
be referred to the Committee on Economic Development and Business
Concerns.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Tourism,



                                   ______________________________
                                   JERRY L. CHANG, Chair