Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 1599 entitled:

begs leave to report as follows:

The purpose of this measure is to establish a Diamond Head state monument special fund into which fees for related user fees, concession agreements, and other funding sources shall be deposited. The funds will be used for the planning and development of construction and repairs, operations and maintenance, and other educational programs at Diamond Head state monument.

This measure also authorizes the issuance of general obligation bonds and makes a corresponding appropriation for the planning, design, and construction of a Diamond Head state monument interpretive center.

Your Committee received testimony supporting this measure from the Waikiki Improvement Association and one individual. The Department of Land and Natural Resources (DLNR) submitted testimony supporting the intent of this measure but could not provide its full support due to its possible adverse impact on the proposed Executive Biennium Budget. The Department of Budget and Finance did not support the measure on the same basis.

Your Committee finds that Diamond Head state monument (Diamond Head) is an international landmark that immediately conveys Hawaii's identity. As a result, Diamond Head is one of Hawaii's most popular tourist attractions. However, its popularity comes at a price. Diamond Head endures tremendous wear and requires constant, diligent maintenance. A dedicated source of funding for Diamond Head is necessary to ensure it is protected and preserved for enjoyment by the entire world. Your Committee reviewed the proposed special fund established in this measure and decided on adopting a different approach.

Your Committee has amended this measure by:

The Diamond Head State Monument Master Plan Update, which was accepted by the Board of Land and Natural Resources in December, 1999, increases visitor opportunities by creating new hiking trails, new lookouts, new interpretive facilities, new picnic areas, and a wetland pond. An integral part of the Master Plan Update is the Visitor/Interpretive Center (Center) which will serve as a focal point for visitor orientation. Since the existing Diamond Head park attracts at least 600,000 visitors annually, your Committee finds that investment into the Center is a timely investment that will offset its costs in term of long-term revenue gains.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1599, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1599, S.D. 1, and be referred to the Committee on Ways and Means.