Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2669 entitled:

begs leave to report as follows:

The purpose of this bill is to provide for the maintenance and operational expenses of the Hawaii Convention Center by repealing the existing $31,000,000 cap on the amount of transient accommodations tax (TAT) collections deposited into the Convention Center Enterprise Special Fund.

The Hawaii Tourism Authority supported this bill. The Hawaii Government Employees Association opposed this measure. The Department of Business, Economic Development, and Tourism and Department of Taxation offered comments.

Your Committee notes that while 50 percent of TAT revenues are deposited into the Convention Center Enterprise Special Fund and Tourism Special Fund, the counties, which provide critical services and infrastructure for tourists, receive less than 45 percent.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2669, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2669, H.D. 1.