STAND. COM. REP. NO. 1338-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 426
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
426, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO FUNDS,"

begs leave to report as follows:

     The purpose of this bill is to establish a program that
maximizes the receipt of federal revenues for state agencies and
programs.

     For purposes of public hearing, your Committee circulated a
proposed H.D. 1 of this bill.  The proposed H.D. 1 amends
provisions relating to the Convention Center Capital and
Operations Special Fund (Fund) by: 

     (1)  Repealing language that allows "net revenues" to be
          deposited into the Fund;

     (2)  Repealing language that allowed the Convention Center
          Authority (CCA) to define "net revenues"; and

     (3)  Extending the sunset date for the CCA to June 30, 2001.

     The CCA supported this bill.  The Hawaii Tourism Authority
and the Department of Business, Economic Development, and Tourism
(DBEDT) commented on this bill.  Neighbors of the Ala Wai, Hawaii
Council of Associations of Apartment Owners, McCully-Moiliili

 
 
 
                                 STAND. COM. REP. NO. 1338-00
                                 Page 2

 
Neighborhood Board No. 8, Ala Moana Residents Advisory Council,
Life of the Land, and numerous individuals opposed this bill.

     Your Committee has amended this bill by incorporating the
provisions of the proposed H.D. 1 into the bill and some of the
points made by DBEDT in their testimony.  Specifically,
provisions to:

     (1)  Provide that "gross revenues" derived from the
          operation or use of the Hawaii Convention Center,
          including its parking and garage facilities,
          concessions, and food and beverage operations shall be
          deposited in the Fund; and

     (2)  Provide that gifts, grants, and other funds accepted by
          the CCA shall be deposited into the Fund.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
426, S.D. 2, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 426, S.D.
2, H.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair