Report Title:

Hawaii Tourism Authority; Attorneys; Marketing; Registry

Description:

Authorizes the Hawaii Tourism Authority (HTA) to employ or retain attorneys independent of the Attorney General to provide legal services for the Authority; appropriates $8,000,000 for an integrated market plan by HTA; establishes a Hawaii tourism registry for groups of state residents who plan to travel out-of-state. (SB38 HD1)

THE SENATE

S.B. NO.

38

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

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- Authority attorneys. (a) The board may appoint or retain by contract one or more attorneys who are independent of the attorney general, to provide legal services for the authority, including:

(1) Representation for the authority in civil actions to which the authority is a party, either directly or through the acts or omissions of its officers or employees;

(2) Advice and assistance to ensure the lawful and efficient administration and operation of the authority;

(3) Review and approval of documents relating to the acquisition of land or interest in land by the authority; and

(4) Other legal service specified by the board.

The board may fix the compensation of the attorneys appointed pursuant to this section. Attorneys appointed or retained by contract shall be exempt from chapters 76 and 89.

(b) Nothing in this section shall preclude the board from requesting and securing legal services from the attorney general and the department of the attorney general, for:

(1) The authority;

(2) The board or its members; or

(3) The authority's officers and employees,

upon mutual agreement."

SECTION 2. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

(1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

(2) By any court or judicial or legislative office of the State;

(3) By the legislative reference bureau;

(4) By any compilation commission that may be constituted from time to time;

(5) By the real estate commission for any action involving the real estate recovery fund;

(6) By the contractors license board for any action involving the contractors recovery fund;

(7) By the trustees for any action involving the travel agency recovery fund;

(8) By the office of Hawaiian affairs;

(9) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485;

(10) As grand jury counsel;

(11) By the Hawaiian home lands trust individual claims review panel;

(12) By the Hawaii health systems corporation or any of its facilities;

(13) By the auditor;

(14) By the office of ombudsman;

(15) By the insurance division;

(16) By the University of Hawaii;

(17) By the Kahoolawe island reserve commission;

(18) By the division of consumer advocacy; [or]

(19) By the Hawaii tourism authority; or

[(19)] (20) By a department, in the event the attorney general, for reasons deemed by the attorney general good and sufficient, declines, to employ or retain an attorney for a department; provided that the governor thereupon waives the provision of this section."

2. By amending subsection (c) to read:

"(c) Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority, the Hawaiian home lands trust individual claims review panel, or as grand jury counsel, shall be a deputy attorney general."

PART II

SECTION 3. The legislature finds that the people of Hawaii who travel out-of-state are often the State's finest "ambassadors of aloha." Their enthusiasm for the land and people of Hawaii, their embodiment of the aloha spirit, characterized by the charm, warmth, and sincerity of Hawaii's people, and their willingness to teach others of the wonders and beauty of their State and its multicultural population, all represent an untapped potential to market and promote Hawaii and its people.

The purpose of this part is to tap into this potential by requiring the Hawaii tourism authority to establish a registry of groups composed of Hawaii residents who are traveling out-of-state for various purposes, such as for business or cultural meetings or to perform in concerts or parades. The registry, known as the "Hawaii tourism registry", could be used to support the authority's marketing and promotional efforts by enlisting these groups to promote and market Hawaii as a tourist destination.

In addition, this part:

(1) Requires the authority to establish a website to advertise the Hawaii tourism registry and to publish its promotional and marketing activities; and

(2) Allows the authority to enter into agreements with groups registered with the authority, for the purpose of assisting in the marketing and promotion of Hawaii.

SECTION 4. 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. The authority shall establish 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 5. 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."

PART III

SECTION 6. The political, economic, and security uncertainties caused by the anticipated armed conflict with Iraq rise with each passing day. The painstaking efforts of United Nations weapons inspectors have revealed a serious lack of compliance by the government of Iraq with Security Council resolutions that call for disarmament and for the destruction of materials used to build weapons of mass destruction. As a result, the U.S. administration has increasingly been preparing for an armed conflict or a war.

Furthermore, on February 7, 2003, the federal government raised the domestic terror alert from "high" to "elevated" because of a concern about a high risk of attacks by the al-Qaeda terrorist network against U.S. targets at home and abroad. U.S. intelligence and health officials have stated in public announcements and private briefings that they are particularly concerned about chemical, biological, or radiological weapons, including "dirty bombs" that would spread radioactive debris over a wide area.

The impact of the uncertainty and the preparations for an armed conflict or a war have had, are having, and will continue 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.

Should our nation enter an armed conflict or go to war, a look back at history can provide valuable insight on the potential effects such a conflict or war may have on the State's economy. For example, the Persian Gulf War of 1991 drastically reduced the demand for air travel, with leisure destinations, such as Hawaii, hardest hit. Combined with a reduction in visitors, a significant spike in fuel prices also occurred, thus inflicting further damage on the already weakened economy.

Moreover, neither our nation nor our State has fully recovered from the impact of the terrorist attacks of September 11, 2001. While Hawaii's economy is slowly improving, our recovery has been gradual and fragile and can easily be derailed by another terrorist attack or by a war.

The purpose of this part is to counter and mitigate the possible adverse effects that an armed conflict or war may have on the economy of Hawaii and the welfare of its people.

SECTION 7. There is appropriated out of the tourism special fund the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2003-2004 for the implementation of an integrated marketing plan by the Hawaii tourism authority to market and promote the State of Hawaii as a visitor destination; provided that the sum appropriated shall be in addition to the sums appropriated out of the tourism special fund in the general appropriations Act or any other Act. The marketing plan shall respond to the unstable market conditions resulting from the current conflict in the Middle East, Afghanistan, and, potentially, Iraq. Existing tourism marketing contracts may be amended to implement the purposes of this part.

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

SECTION 8. The Hawaii tourism authority, with assistance from the Hawaii Visitors and Convention Bureau, shall report to the legislature by December 15, 2003, on its implementation of an integrated plan to market and promote the State of Hawaii as a visitor destination in response to the unstable market conditions resulting from the current conflicts in the Middle East, Afghanistan, and, potentially, Iraq. The report shall include the details on how the $8,000,000 was expended, and how these expenditures relate to other expenditures by the Hawaii tourism authority for marketing.

SECTION 9. This part shall not be applied so as to impair any contract existing as of the effective date of this part in a manner violative of either the Hawaii Constitution or section 10 of Article I of the United States Constitution.

PART IV

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect upon its approval, provided that:

(1) Part I shall take effect on July 1, 2003; and

(2) Part III shall take effect on July 1, 2003, and be repealed on June 30, 2004.