STAND

STAND. COM. REP. 1026

Honolulu, Hawaii

, 2003

RE: S.B. No. 1040

S.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred S.B. No. 1040, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX,"

begs leave to report as follows:

The purpose of this bill is to protect the natural beauty of Hawaii's trails and accesses by:

(1) Requiring ten percent of the first $1,000,000 in revenues deposited in excess of $62,292,000 into the Tourism Special Fund (Special Fund) to be deposited into the Special Land and Development Fund (Development Fund) for the Hawaii Statewide Trail and Access Program (Program); and

(2) Eliminating the $500,000 ceiling on the amount of funds that may be dedicated for the management, maintenance, and development of trails and trail accesses under the jurisdiction of the Department of Land and Natural Resources (DLNR).

DLNR and The Nature Conservancy of Hawaii testified in support of this bill. The Department of Taxation and Tax Foundation of Hawaii commented on this measure.

Act 250, Session Laws of Hawaii (SLH) 2002, authorized the use of a portion of the Special Fund for the Program. However, Act 250 did not specify a deposit into any fund. In order for the Program to expend any of these funds, it must be deposited into the Development Fund, which provides funds for the Program.

Your Committee finds that Hawaii's natural beauty is one of its greatest assets and that continued maintenance of Hawaii's trails and access areas enhances the enjoyment of these natural areas. The Program provides safe, accessible hiking trails for residents and visitors alike and plays an important role in enhancing the overall tourist experience.

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1040, S.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land Use, and Hawaiian Affairs,

		____________________________ EZRA R. KANOHO, Chair