STAND. COM. REP. NO. 2236

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2006
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 2006 entitled: 

     "A BILL FOR AN ACT RELATING TO THE CONVENTION CENTER,"

begs leave to report as follows:

     The purpose of this measure is to extend the sunset date of
the convention center authority to 2001.

     Testimony in favor of this measure was submitted by the
Hawaii Hotel Association, Maui Hotel Association, four members of
the Convention Center Authority Board, and one other individual.
The Department of Business, Economic Development, and Tourism,
Ala Moana Residents Advisory Council, Waikiki Area Action
Association, Neighbors of the Ala Wai, Summer Place AOAO, Yacht
Harbor Towers, and three individuals submitted testimony in
opposition.

     Your Committee finds that Act 98, Session Laws of Hawaii
(SLH) 1999, extended the sunset date of the convention center
authority for one additional year in order to give the authority
additional time to complete its work before the intended
consolidation of the convention center authority and the Hawaii
tourism authority.

     Your Committee has heard both proponents and opponents to
this proposed consolidation and recognizes that there is merit to
both options.  However, your Committee believes there remain
issues that can best be addressed by the convention center

 
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                                   STAND. COM. REP. NO. 2236
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authority and has amended this measure to extend the sunset date
for two additional years, until 2002.

     In doing so, however, your Committee wishes to express very
grave concerns about the ineffectiveness of the marketing program
for the center.  Despite considerable expenditures, the center
still appears to be missing market opportunities, and as a
result, is far from meeting its target goals for both major and
lessor events.  Your Committee believes this could well be
considered one of the "various outstanding problems" included in
the management audit of the convention center authority,
established in Act 98, SLH 1999.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2006, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2006,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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