Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Tourism and Intergovernmental Affairs, to which was referred H.B. No. 269, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to assign the responsibility to market, manage, operate, and maintain the convention center facility to the Hawaii Tourism Authority (HTA) and to establish a convention center enterprise special fund; to increase the number of public voting members of the HTA; and to designate fifty per cent of any excess revenue in the tourism special fund for business tourism promotion and fifty per cent to invest in Hawaii's natural environment.

Your Committee received testimony in support of this measure from the Governor's Special Advisor for Technology Development, Department of Business, Economic Development, Tourism, Hawaii Tourism Authority and three board members, Hawaii Hotel Association, Maui Hotel Association, Waikiki Improvement Association, Hawaii Attractions Association, Retail Merchants of Hawaii, 21st Century Group, Inc., Textron Systems Kauai, Hui No`eau Visual Arts Center, Maui Arts & Culture Center, Kapa`a Business Association, Maui Film Festival, Poipu Beach Resort Association, and Sierra Club Hawaii Chapter. The Department of Land and Natural Resources, the Tax Foundation of Hawaii, and Trust for Public Land submitted comments.

Your Committee finds that there has been considerable – and wide-ranging – discussion about Hawaii tourism during this legislative session. This Committee alone has held several hearings and informational briefings ranging from the specifics of the operations of the HTA to the broader issues of future projections for tourism and the associated impacts on Hawaii – both positive and negative.

Your Committee further finds a readiness by the parties, both public and private sector tourism agencies, to reevaluate some of the assumptions made in the past, and to reassess future directions. This measure reflects an attempt to do so. It does not, however, go far enough.

Your Committee believes there must be significantly greater change in how state tourism agencies carry out their activities, in how they keep the public informed of their activities and decisions, and in how they account for public moneys invested in tourism.

Your Committee has amended this measure by replacing its contents with those of S.B. No. 1029, S.D. 3, which contains some provisions comparable to this measure, and with the contents of S.B. No. 336, S.D. 3, which sunsets the HTA on June 30, 2003, and requires the Auditor to conduct a financial audit of the HTA and report on its findings and recommendations to the 2002 Legislature.

While these provisions would appear to be contradictory, your Committee believes they are a prudent solution to unresolved issues. The convention center authority law sunset on June 30, 2000, and the HTA is an appropriate interim assignment for the convention center, although this may not be the most appropriate long-term solution. In addition, the Auditor's report will include recommendations for the reorganization, repeal, or consolidation of the authority with other agencies.

As amended, this measure:

As affirmed by the record of votes of the members of your Committee on Tourism and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 269, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 269, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.