Report Title:

Gaming Study; Senate Interim Committee

WHEREAS, the issue of legalized gaming in Hawaii has been studied and considered since statehood; and

WHEREAS, the study of and discussion about legalized gaming in Hawaii is most often focused on the social impacts of allowing gaming in Hawaii; and

WHEREAS, there have been various proposals in support of various forms of legalized gaming submitted to the Legislature over the past several years, including a state lottery, shipboard gaming, and horse racing; and

WHEREAS, the Governor has expressed his intent to not fully fund the arbitrated award between the Hawaii Government Employees Association (HGEA) and the State regarding pay raises for covered employees; and

WHEREAS, in addition, the Governor also has not included funding for pay raises for the HGEA award, for teachers, university faculty, and other government employees whose contracts are either currently being negotiated or settled; and

WHEREAS, also of grave concern is the escalating cost of complying with the federally-mandated Felix Consent Decree which has already cost the State tens of millions of dollars; and

WHEREAS, in light of the Governor's failure to provide funding or methods to generate revenue for public employee raises or to cover the costs of the Felix Consent Decree, the responsibility falls upon the Legislature to appropriate funds and find means by which to obtain revenue for the appropriations; and

WHEREAS, with news of the faltering U.S. and Asian economies, revenue predictions, although optimistic in the near term, could experience a downturn in the coming year; and

WHEREAS, because of the maturation of Hawaii’s visitor industry, the State has been exploring the development of new visitor attractions and niche markets to improve the growth of the visitor industry; and

WHEREAS, many destinations that are competing with Hawaii for visitor dollars have included legal gaming in some form; and

WHEREAS, Hawaii is one of only two states that prohibit all types of gaming; and

WHEREAS, those opposed to legal gaming argue that these forms of gaming will not attract "new" dollars, but will cause a shift in spending patterns which will ultimately hurt existing businesses; and

WHEREAS, on the other hand, proponents of gaming argue that the State loses millions in revenue each year to other jurisdictions with gaming as:

WHEREAS, these arguments are primarily based on studies conducted in other states or anecdotal information and are not supported by any hard data on the spending or investment patterns of Hawaii’s visitors and residents; and

WHEREAS, in order to make a fully informed decision about gaming in Hawaii, the Legislature needs comprehensive and objective information about the economic impacts of legal gaming in Hawaii; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2001, that the Senate President appoint an interim committee which shall conduct a study on the economic impacts of legalized gaming in Hawaii; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism, the Department of Commerce and Consumer Affairs, the Hawaii Tourism Authority, the Hawaii Visitors and Convention Bureau, and the Airlines Committee of Hawaii are requested to cooperate with the interim committee by providing access to information as well as assistance in facilitating surveys that may be deemed necessary; and

BE IT FURTHER RESOLVED that the interim committee submit a report of its findings and recommendations to the Senate no later than twenty days prior to the convening of the 2002 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Senate President, the Director of Business, Economic Development, and Tourism; the Director of Commerce and Consumer Affairs; and the executive heads of the Hawaii Tourism Authority, the Hawaii Visitors and Convention Bureau, and the Airlines Committee of Hawaii.