STAND

STAND. COM. REP. NO.2972

Honolulu, Hawaii

, 2002

RE: H.B. No. 2192

H.D. 1

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Tourism and Intergovernmental Affairs, to which was referred H.B. No. 2192, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOURISM AUTHORITY,"

begs leave to report as follows:

The purpose of this measure is to increase the membership and the areas of expertise of members of the Hawaii Tourism Authority board, including knowledge in Hawaiian cultural practices.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, Hawaii Tourism Authority (HTA), Department of Land and Natural Resources, Hawaii Hotel Association, Retail Merchants of Hawaii, Association of Hawaiian Civic Clubs, and Native Hawaiian Chamber of Commerce. The National Association of Social Workers, Domestic Violence Clearinghouse, Hale `Opio Kaua`i, Inc., Waikiki Health Center, and Hawaii Activities and Tours Association submitted comments.

Your Committee finds that increasing the board's membership and the areas of expertise of its members will enable the HTA board to respond more effectively to the challenges facing Hawaii's visitor industry.

Your Committee believes, however, that there are a number of additional changes that would make the HTA more successful in these efforts and in its management of its financial resources. Your Committee has amended this measure accordingly, to incorporate changes addressed in S.B. No. 2421, S.D. 2, previously heard in this Committee. As amended this measure:

(1) Specifies that the authority is a policy-making board;

(2) Limits membership to no more than two members representing any individual sector of the industry;

(3) Requires any new appointments after the effective date of the Act to fulfill new requirements;

(4) Further clarifies the number of affirmative votes needed for an action by the board;

(5) Requires Senate confirmation of the executive director and caps the salary at fifteen per cent of the three per cent authorized for administrative expenses;

(6) Adds language regarding support for natural resources;

(7) Restricts contracts awarded from contract administration except for single events;

(8) Requires the authority to notify the legislature about any contracts over $25,000;

(9) Adds statutory language to require the Auditor to conduct audits at least every five years on contracts over $15,000,000; and

(10) Changes the effective date from upon approval to July 1, 2002.

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. 2192, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2192, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism and Intergovernmental Affairs,

		____________________________ DONNA MERCADO KIM, Chair