Report Title:

Hawaii Tourism Authority; Registry; Sports Coordinator

Description:

Requires the HTA to establish a Hawaii tourism registry of groups of state residents traveling out-of-state to market and promote Hawaii; modifies compensation package of executive director; allows HTA to appoint a sports coordinator; requires HTA to deposit moneys in the convention center enterprise special fund into interest-bearing accounts in Hawaii depositories; requires deposit in the tourism special fund al interest and revenues from any project or project agreement of the HTA; requires HTA to engage a certified public accountant to perform an annual financial audit of HTA; appropriates $8 million for the HTA to respond to unstable market conditions resulting from world conflicts, terrorist attacks, and the outbreak of SARS out of the tourism special fund. (CD1)

THE SENATE

S.B. NO.

1462

TWENTY-SECOND LEGISLATURE, 2003

H.D. 2

STATE OF HAWAII

C.D. 1

 

A BILL FOR AN ACT

 

RELATING TO THE HAWAII TOURISM AUTHORITY.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

SECTION 1. Chapter 201B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§201B- Hawaii tourism registry; promotion of Hawaii by state residents traveling out-of-state. (a) The authority shall establish a registry of groups of state residents, who plan to travel out-of-state, to market or promote Hawaii as a tourist destination. The registry shall be known as the "Hawaii tourism registry".

(b) The authority shall promote the Hawaii tourism registry and advertise how groups may be included in the registry, including through the establishment of an Internet website, which shall:

(1) Discuss and promote the Hawaii tourism registry;

(2) Specify qualifications for registration;

(3) Advertise the possibility of entering into contracts, including information regarding how groups may qualify for contracts;

(4) List the groups that are registered; and

(5) Specify the destination of each particular group, the travel dates, the number of individuals in each party, and the marketing or promotional goals and objectives of each group.

(c) Groups intended for inclusion in the Hawaii tourism registry shall:

(1) Consist of five or more Hawaii resident individuals, who may be related to each other by birth or marriage, and may be nonprofit or for-profit organizations; and

(2) Intend to travel to out-of-state destinations for purposes that are not solely tourism-related (for example, professional, business, cultural, or fraternal organizations or associations attending conventions or meetings, dance troupes and hula halau, groups having common interests, hobbies, or avocations, and high school or college bands performing in concerts or parades.

(d) The authority may work with each qualified group prior to travel to coordinate the promotional or marketing plans, goals, activities, and objectives to be targeted, including Hawaii sports, culture, health, education, business, eco-tourism, and techno-tourism.

(e) The authority may:

(1) Contract with a private entity or individuals to implement or assist in the implementation of this section; and

(2) Enter into agreements with groups in the Hawaii tourism registry, either directly or through the private entity or individuals contracted with pursuant to paragraph (1).

(f) The authority shall adopt rules pursuant to chapter 91 as may be necessary to implement this section."

SECTION 2. Section 201B-2, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) The authority shall be headed by a policy-making board of directors which consists of twelve public, voting members, one ex officio voting member, and two ex officio nonvoting members; provided that:

(1) Twelve public, voting members shall be appointed by the governor as provided in section 26-34, except as otherwise provided by law;

(2) The twelve public, voting members shall be composed of at least one representative each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; the remaining public members shall be appointed at-large;

(3) Of the twelve public, voting members, three shall be appointed by the governor from a list of three names submitted for each appointment by the president of the senate, and three shall be appointed by the governor from a list of three names submitted for each appointment by the speaker of the house of representatives; provided that if fewer than three names are submitted for each appointment, the governor may disregard the list;

(4) At least six of the twelve public, voting members shall have knowledge, experience, and expertise in the area of visitor industry management, marketing, promotion, transportation, retail, entertainment, or visitor attractions, and at least one shall have knowledge, experience, and expertise in the area of Hawaiian cultural practices; provided that no more than three members shall represent, be employed by, or be under contract to any sector of the industry represented on the board;

(5) The governor shall make appointments to ensure the fulfillment of all requirements; provided that any appointments made after July 1, 2002, shall be made to fulfill the requirements in place when the appointments are made;

(6) The director of business, economic development, and tourism, or [a] an employee designated as the department representative, shall be an ex officio voting member;

(7) The director of transportation, or [a] an employee designated as the department representative, shall be an ex officio nonvoting member; and

(8) The chairperson of the board of land and natural resources, or [a] an employee designated as the department representative, shall be an ex officio nonvoting member."

2. By amending subsection (d) to read:

"(d) The board shall elect a chairperson from among the voting members. The director of business, economic development, and tourism or the employee designated as the department representative shall not be chairperson of the board."

3. By amending subsection (f) to read:

"(f) The board shall appoint an executive director, exempt from chapters 76 and 88, who shall oversee the authority staff; provided that the compensation package, including salary, shall not exceed [fifteen] nine per cent of the [3.5] five per cent authorized for administrative expenses under section 201B-11(c); and provided further that the compensation package shall not include private sector moneys or other contributions. The board shall set the executive director's duties, responsibilities, holidays, vacations, leaves, hours of work, and working conditions. It may grant such other benefits as it deems necessary.

The board may appoint a sports coordinator, exempt from chapters 76 and 88, who shall provide management services for all sporting events supported through the authority."

SECTION 3. Section 201B-3, Hawaii Revised Statutes, is amended to read as follows:

"§201B-3 Powers and duties. (a) Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; and provided further that the authority may enter into agreements for the use of the convention center facility for a period of up to ten years;

(4) Make and alter bylaws for its organization and internal management;

(5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;

(6) Through its executive director represent the authority in communications with the governor and with the legislature;

(7) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapters 76 and 78;

(8) Through its executive director purchase supplies, equipment, or furniture;

(9) Through its executive director allocate the space or spaces which are to be occupied by the authority and appropriate staff;

(10) Engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the authority;

(11) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(12) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;

(13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source, including any revenues or proceeds arising from the operation or use of the convention center;

(14) Create a vision and develop a long range plan for tourism in Hawaii;

(15) Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State and its natural resources infrastructure; provided that the authority shall support the efforts of other state and county departments or agencies to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors;

(16) Develop and implement the state tourism strategic marketing plan, which shall be updated every three years, to promote and market the State as a desirable leisure and business visitor destination;

(17) Have a permanent, strong focus on marketing and promotion;

(18) Conduct market development-related research as necessary;

(19) Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources;

(20) Work to eliminate or reduce barriers to travel in order to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development;

(21) Market and promote sports-related activities and events;

(22) Coordinate the development of new products with the counties and other public sectors and private sectors, including the development of sports, culture, health, education, business, and eco-tourism;

(23) Establish a public information and educational program to inform the public of tourism and tourism-related problems;

(24) Encourage the development of tourism educational, training, and career counseling programs;

(25) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary;

(26) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;

(27) Notwithstanding the provisions of chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; [and]

(28) Pursuant to section 201B- , enter into agreements with and provide funding to Hawaii-based groups in the Hawaii tourism registry to market and promote Hawaii as a tourist destination when traveling out-of-state; and

[(28)] (29) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility.

(b) The [[]authority[]] shall be responsible for:

(1) Promoting, marketing, and developing the tourism industry in the State;

(2) Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning social, economic, and environmental aspects of tourism development in the State;

(3) Providing technical or other assistance to agencies and private industry upon request;

(4) Developing and implementing the state tourism marketing plan; and

(5) Reviewing annually the expenditure of public funds by any visitor industry organization with which the [[]authority[]] contracts to perform tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of tourism. The [[]authority[]] shall also prepare annually a report of expenditures, including descriptions and evaluations of programs funded, together with any recommendations the [[]authority[]] may make and shall submit the report to the governor and the legislature as part of the annual report required under section 201B-16.

(c) The [[]authority[]] shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this chapter, and to perform other functions required or authorized by law.

(d) Notwithstanding any law, rule, and executive directive, order, policy, or guideline to the contrary, the authority shall not be subject to chapters 38 and 40, unless otherwise provided in this chapter."

SECTION 4. Section 201B-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The authority may enter into contracts and agreements that include the following:

(1) Tourism promotion, marketing, and development;

(2) Market development-related research;

(3) Product development and diversification issues focused on visitors;

(4) Promotion, development, and coordination of sports-related activities and events;

(5) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;

(6) Reduction of barriers to travel;

[[](7)[]] Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2003, and thereafter the contract for management of the convention center facility shall include marketing for all uses of the facility; and

[[](8)[]] Any and all other activities necessary to carry out the intent of this chapter;

provided that [for] when the authority executes any contract or agreement valued at $25,000 and over, the authority shall provide notice of the execution of the contract or agreement to the speaker of the house of representatives and the president of the senate on the same day that such notification is given to the governor."

SECTION 5. Section 201B-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Notwithstanding any law, rule, and executive directive, order, policy, or guideline to the contrary, the authority shall deposit moneys in the convention center enterprise special fund into interest-bearing accounts in any depository within the State until such time as the moneys may be needed. Any sums so deposited shall be deemed to be in the state treasury; provided that the depository into which the money is deposited shall furnish security as provided in section 38-3. All interest accruing from the investment of these moneys shall be credited to the convention center enterprise special fund. Moneys in the convention center enterprise special fund shall be used by the authority for the payment of any and all debt service relating to the convention center, any expense arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to section [[]201B-7(a)(7)[]]. All disbursements shall be drawn from such accounts upon checks prepared and signed as approved by the executive director or the designee of the executive director authorized by the board, and a member of the board authorized by the board."

SECTION 6. Section 201B-11, Hawaii Revised Statutes, is amended to read as follows:

"§201B-11 Tourism special fund. (a) There is established in the state treasury the tourism special fund, into which shall be deposited:

(1) A portion of the revenues from any transient accommodations tax, as provided by section 237D-6.5; [and]

(2) Appropriations by the legislature to the tourism special fund; [and]

(3) Gifts, grants, and other funds accepted by the authority[.]; and

(4) All interest and any revenues or receipts derived by the authority from any project or project agreement.

(b) Moneys in the tourism special fund [may] shall be placed in interest-bearing accounts or otherwise invested by the authority until such time as the moneys may be needed. Any sums so deposited shall be deemed to be in the state treasury; provided that the depository into which the money is deposited shall furnish security as provided in section 38-3. All disbursements shall be drawn from such accounts upon checks prepared and signed as approved by the executive director or the designee of the executive director authorized by the board, and a member of the board authorized by the board. All interest accruing from the investment of these moneys shall be credited to the tourism special fund.

(c) Moneys in the tourism special fund shall be used by the authority for the purposes of this chapter[,]; provided that:

(1) Not more than [3.5] five per cent of this amount shall be used for administrative expenses, including $15,000 for a protocol fund to be expended at the discretion of the executive director; and

(2) At least $1,000,000 shall be made available to support efforts to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors."

SECTION 7. Section 201B-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]§201B-16[]] Annual report. The authority shall engage a certified public accountant to conduct an annual audit of its financial affairs, books, and records in accordance with generally accepted accounting principles. The authority shall submit a complete and detailed report of its activities, expenditures, and results, including the audited financial report, to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

PART II

SECTION 8. The political, economic, and security uncertainties caused by world conflicts, war in Iraq, a high risk of attack by terrorist networks against U.S. targets at home and abroad, and the outbreak of severe acute respiratory syndrome (SARS), continues to have an adverse effect on the economy and people of Hawaii. Although the State has enjoyed some success in economic diversification, tourism remains a crucial pillar of Hawaii's economy.

As during the Persian Gulf War of 1991, because of the world conflicts, war in Iraq, terrorist threats, and the outbreak of SARS, demand for air travel has dramatically been reduced, with leisure destinations such as Hawaii, hardest hit. The combined impact of these events may further damage an already weakened economy.

While Hawaii's economy is slowly improving, our recovery has been gradual and fragile and can easily be derailed by another debilitating factor.

The purpose of this part is to respond to any adverse effects of world conflicts, terrorist threats, and the outbreak of SARS on the economy of Hawaii and the welfare of its people, and to strengthen the programs and operations of the Hawaii tourism authority.

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $8,000,000, or so much thereof as may be necessary for fiscal year 2003-2004, for purposes stated in section 7 of this Act and to improve the operational efficiency of the Hawaii tourism authority; provided that the sum appropriated shall be in addition to sums appropriated out of the tourism special fund in the general appropriations Act or any other Act.

The sum appropriated shall be expended by the Hawaii tourism authority for the purposes of this part.

SECTION 10. The Hawaii tourism authority may amend existing contracts to conform to the purposes of this part.

SECTION 11. The Hawaii tourism authority shall report to the legislature no later than January 15, 2004, on the details of expenditures of the moneys appropriated under this part including, but not limited to, funds used to strengthen the Hawaii tourism authority's programs and improve operational efficiency.

SECTION 12. This part shall not be construed to impair any contract existing as of the effective date of this Act.

PART III

SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 14. This Act shall take effect on July 1, 2003; provided that sections 5 and 6 of this Act shall be repealed on June 30, 2006, and sections 201B-8 and 201B-11, Hawaii Revised Statutes, are reenacted in the form in which they read on the day before the effective date of this Act.