Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Tourism, to which was referred H.B. No. 2061, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to redistribute the transient accommodations tax remittances, delete the caps on the convention center enterprise special fund and the tourism special fund, and repeal the transient accommodations tax trust fund.

Your Committee amended this measure prior to the hearing with a proposed S.D. 1, and made it available to the public. As amended, this measure establishes an Aloha Aina Patrol in counties having a population over 500,000, and retains the transient accommodations tax trust fund.

Testimony in support of the amended measure was received from the Mayor of Kauai, two Maui Council Members, Hawaii County Finance Department, Hawaii Business Roundtable, Hawaii Hotel & Lodging Association, and Waikiki Improvement Association. Testimony in opposition was received from the Department of Budget and Finance, Department of Taxation, Department of Business, Economic Development and Tourism, Mayor of Maui, and Hawaii Tourism Authority. Comments were received from the Tax Foundation of Hawaii.

This measure proposes an innovative program that will address the crime problem and spread the message of the aloha spirit at the same time. The program would create additional security patrols geared toward parks and beaches where there have been too many incidents of crime against visitors and residents.

Your Committee's intent is to assure visitors to Hawaii, as well as local residents, that they will be safe from crimes against persons or property at the State's more popular and highly visited parks and beaches. The Hawaii Tourism Authority, in conjunction with county police departments, will determine the specific areas to be patrolled.

The unit is being called 'Aloha Aina Patrol,' and will not only provide additional security, but also serve as ambassadors of aloha. These patrols will consist of police cadets and police service officers. The intent is to have Aloha Aina Patrol officers in aloha attire versus police uniforms, thus emphasizing the aloha spirit.

Your Committee finds that tourism is a vital part of the economy for the State of Hawaii, and the Aloha Aina Patrol will contribute greatly to the vitality of the visitor industry as it emphasizes the uniquely warm and friendly spirit of our island home.

To finance the Aloha Aina Patrol, your Committee has allotted the sum of $1,000,000 from the tourism special fund and raised the ceiling on the fund by $1,000,000 for a new limit of $63,292,000.

Your Committee has amended the proposed S.D. 1 to require all counties to establish an Aloha Aina Patrol.

As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2061, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2061, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.