STAND. COM. REP. NO. 125

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 804
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 804 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR THE ALOHA
     RACING ENTRY IN AMERICA'S CUP 2000,"

begs leave to report as follows:

     The purpose of this measure is to appropriate an unspecified
sum for costs related to the preparation and sailing of the Aloha
Racing Yacht entry in America's Cup 2000.

     Your Committee received testimony in support of this measure
from the Aloha Racing Foundation, the Boat Owners Association of
The State of Hawaii, the Waikiki Yacht Club, Tradewinds U-Drive,
Inc., and twelve individuals.  The Department of Business,
Economic Development, and Tourism submitted testimony in
opposition.

     Your Committee finds that this measure will provide support
for Hawaii's team in America's Cup 2000, to be held in New
Zealand next year.  Held every three years, the America's Cup
Yacht Race will receive over two hundred hours of international
television coverage over a five-month period, as well as
extensive national and international print media coverage.
Hawaii's two entries will carry a design by the artist Wyland,
and will be easily recognizable.

     Your Committee further finds that if a Hawaii boat wins the
final race in New Zealand, the next America's Cup could be held

 
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                                   STAND. COM. REP. NO. 125
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in Hawaii waters.  Your Committee is supportive of this effort
and believes participation in America's Cup 2000 will be highly
beneficial to Hawaii's current and future tourism efforts.

     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. 804 and recommends that it pass Second Reading 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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