Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2709, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to assign the responsibility to market, operate, manage, and maintain the Hawaii convention center facility to the Hawaii Tourism Authority.

In addition, this measure establishes a Hawaii convention center enterprise special fund and a convention center facility reserve special fund. This measure also formally repeals the convention center authority law, which "automatically terminated" on June 30, 2000, by retroactively adding language that effectuates the repeal of that law.

Your Committee finds that, since the effectiveness of the convention center is to be primarily determined by its ability to generate tourism related revenues for the State, it should be given the necessary tools to effectively compete against other convention and hotel destinations.

Moreover, your Committee finds that the convention center should be allowed to operate as a business enterprise and to always maintain an appropriate capital reserve balance for cash flow and capital expenditures related to major repair, replacement, or construction of items at the convention center facility.

Your Committee finds that the convention center is of great importance to Hawaii's visitor industry, and that this measure will help to ensure greater accountability and efficiency for the convention center, and will clarify the responsibility for the convention center, an issue that has been clouded since the termination of the convention center authority law on June 30, 2000.

Upon further consideration, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2709, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2709, S.D. 2.