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 S.B. No. 2421 entitled:

begs leave to report as follows:

The purposes of this measure are to:

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, Department of Land and Natural Resources, Hawaii Hotel Association, Visitor Industry Coalition, Hawaii Activities and Tours Association, and Retail Merchants of Hawaii. The Hawaii Tourism Authority (HTA) testified in opposition.

Your Committee finds that increasing the membership of the HTA board to reflect the diverse nature of the tourism industry will strengthen the board's ability to respond to an increasingly sophisticated and competitive global tourism market. The addition of the Chair of the Board of Land and Natural Resources as a non-voting member is also critical to the success of the board's expanded role in supporting the State's efforts to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors.

Your Committee considers the Auditor's recently released critical audit of the HTA as indicative that the periodic audit requirement of this measure will be an effective way to assist the HTA, in the future, in avoiding many of the concerns raised.

Your Committee has amended this measure 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 S.B. No. 2421, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2421, S.D. 1, and be referred to the Committee on Ways and Means.