STAND. COM. REP. NO.697

Honolulu, Hawaii

, 2001

RE: H.B. No. 269

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 269 entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

begs leave to report as follows:

The purpose of this bill, as received by your Committee, is to change the composition of the Board of Directors of the Hawaii Tourism Authority (HTA) to have eleven public and two ex officio voting members.

For purposes of this hearing, your Committee circulated a proposed H.D. 1(B) draft that deletes the provisions of the bill and inserts new language consistent with HTA's administration bill (H.B. No. 533), which was also referred to this Committee. It is the intention of your Committee to use this proposed draft as a vehicle for a bill that is similar to H. B. No. 533.

The Hawaii Hotel Association, Kauai Economic Development Foundation, Kauai Technology Center, Sheraton Hotels and Resorts Hawaii, Textron Systems Kauai, Maui Hotel Association, and Maui Economic Development Board, Inc., and a concerned citizen testified in support of the proposed H.D.1(B) version of this bill.

The Hawaii Tourism Authority (HTA), the Department of Business, Economic Development, and Tourism (DBEDT), Hawaii Attractions Association, Visitor Industry Coalition, Outrigger Hotels & Resorts, Retail Merchants of Hawaii, and Waikiki Improvement Association supported the intent of the proposed draft. The Trust for Public Land, Department of Land and Natural Resources (DLNR), and the Tax Foundation of Hawaii commented on the proposed draft.

Your Committee has amended this bill by deleting its contents and inserting many of the substantive provisions of H.B. No. 533. As amended this bill, among other things:

(1) Establishes the Convention Center Enterprise Special Fund, and exempts it from central service expenses and departmental administrative expenses;

(2) Exempts HTA from chapter 102, Hawaii Revised Statutes, and other law requirements for competitive bidding for any concession or commercial enterprise;

(3) Increases the number of HTA voting members;

(4) Assigns HTA the responsibility for marketing, managing, using, operating, and maintaining the Convention Center facility;

(5) Appropriates out of the Convention Center Enterprise Special Fund, $42,800,000 for fiscal year 2001-2002 and $42,400,000 for fiscal year 2002-2003 for purposes of the Convention Center Enterprise Special Fund; provided that $2,000,000 for each year of fiscal biennium 2001-2003 shall be deposited into the Convention Center Facility Reserve Special Fund for any future major repair, maintenance, and improvement of the Convention Center facility;

(6) Appropriates funds for the Convention Center Facility Reserve Special Fund;

(7) Creates the Convention Center Facility Reserve Special Fund;

(8) Specifies that if the amount of transient accommodations tax revenues deposited into the Tourism Special Fund exceeds the amount appropriated to HTA and DBEDT's Visitor Research Program for fiscal year 2001-2002 and fiscal year 2002-2003, then all revenues collected in excess of that amount is to be expended by HTA with 50 percent to expand, promote and diversify Hawaii business tourism and 50 percent to invest in Hawaii's natural environment;

(9) Authorizes HTA to support the efforts of other state and county departments and agencies to manage, improve and protect Hawaii's natural environment and areas frequented by visitors;

(10) Clarifies "revenues" as "gross revenues";

(11) Authorizes HTA's board of directors to adopt rules consistent with chapter 91; and

(12) Makes technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

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 H.B. No. 269, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 269, 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