Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Water and Land Use and Tourism and Culture, to which was referred H.B. No. 694 entitled:

beg leave to report as follows:

The purpose of this measure is to transfer, on an annual basis, up to six per cent of the moneys in the tourism special fund, which are derived each year from transient accommodations tax revenues, to the state parks special fund.

In addition, this measure appropriates $4,000,000 out of the state parks special fund, for fiscal year 2001-2002, for the purposes of the special fund, which provides a dedicated—albeit insufficient—source of funding for:

Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Department of Business, Economic Development, and Tourism, The Trust for Public Land, Sierra Club, and Na Leo Pohai -- the public policy affiliate of The Outdoor Circle. The Hawaii Tourism Authority and the Hawaii Hotel Association testified in opposition to this measure. The University of Hawaii Environmental Center and the Tax Foundation of Hawaii commented on this measure.

Your Committees have amended this measure by:

The funding mechanism contained in this measure is only one of many possible funding mechanisms available to the Legislature. Because of concerns voiced by the counties and other persons, your Committees on Water and Land Use and Tourism and Culture will defer to the Committee on Finance if it is determined by the latter that another funding mechanism would be more appropriate.

As affirmed by the records of votes of the members of your Committees on Water and Land Use and Tourism and Culture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 694, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 694, H.D. 1, and be referred to the Committee on Finance.