Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Tourism and Culture, to which was referred H.B. No. 1589 entitled:

begs leave to report as follows:

The purpose of this bill is to amend the definitions of "gross rental" or "gross rental proceeds" and "operator" under chapter 237D-1, Hawaii Revised Statutes.

Supporting testimony for the measure was submitted by the City and County of Honolulu, the Counties of Hawaii and Maui, Hawaii State Teachers Association and the ILWU LOCAL 142. The American Society of Travel Agents (ASTA), ASTA HAWAII Chapter, Hawaii Hotel Association, and the National Tour Association submitted testimony opposing the measure. The Department of Taxation took no position, but provided comments on the measure. An economist testifying on his own behalf commented that the potential impact of the measure's change on visitor arrivals and length of stay is insignificant, as it is too small to be measured by conventional statistical technique.

As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose

of H.B. No. 1589 and recommends that it pass Second Reading and be referred to the Committee on Finance.