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. 2451 entitled:

begs leave to report as follows:

The purposes of this measure are to establish a convention center enterprise special fund and a convention center facility reserve special fund, and to assign the responsibility to market, operate, manage, and maintain the convention center facility to the Hawaii Tourism Authority.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, the Hawaii Tourism Authority (HTA), SMG, and Hawaii Hotel Association. The Tax Foundation of Hawaii submitted comments.

Your Committee finds that after the sunset of the previous convention center law on June 30, 2000, the Governor assigned the control and management of the convention center to the HTA through Executive Order No. 3817. This measure would formalize that responsibility in statute.

Your Committee believes formalizing the responsibility would help to ensure efficient management of the convention center, but has some reservations about the need for two convention center special funds.

Your Committee has amended this measure accordingly, to:

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. 2451, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2451, S.D. 1, and be referred to the Committee on Ways and Means.