STAND

STAND. COM. REP. NO. 446

Honolulu, Hawaii

, 2005

RE: H.B. No. 471

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Tourism & Culture and Labor & Public Employment, to which was referred H.B. No. 471 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOURISM AUTHORITY,"

beg leave to report as follows:

The purpose of this bill is to provide more flexibility to, and improve management of, the Hawaii Tourism Authority (HTA) by, among other things:

(1) Clarifying that HTA may develop and implement, through the HTA's Executive Director, a personnel system to provide for the appointment of officers, agents, and employees, subject to the approval of the Board of Directors of HTA (Board);

(2) Authorizing HTA to encourage collaboration between the visitor industry, law enforcement, community organizations, and businesses to develop and implement programs to improve visitor and resident safety and security;

(3) Establishing that the Board shall have management and control of the general affairs, and exclusive jurisdiction over the internal organization and management, of HTA;

(4) Placing the Convention Center Enterprise Special Fund (CCESF) and Tourism Special Fund (TSF) outside the state treasury;

(5) Allowing funds in the CCESF to be placed in interest-bearing accounts or otherwise invested by HTA until needed; and

(6) Allowing HTA to establish a special account in the TSF for deposits of non-tax revenues received from public or private contracts.

HTA supported this bill with amendments. The Department of Budget and Finance and the Department of Business, Economic Development, and Tourism opposed this bill.

In light of concerns raised during public testimony on this measure, your Committees have amended this bill by:

(1) Deleting the provision encouraging collaboration between the visitor industry, law enforcement agencies, community organizations, and businesses to improve visitor and resident safety and security;

(2) Deleting the provision establishing that the Board shall have management and control of the general affairs, and exclusive jurisdiction over the internal organization and management, of HTA;

(3) Clarifying that funds in the CCESF and TSF may be:

(A) Placed in interest-bearing accounts, provided that the depositories in which the funds are deposited furnish security as specified in section 38-3, Hawaii Revised Statutes; and

(B) Invested by HTA in any investment listed under section 36-21, Hawaii Revised Statutes, until needed;

and

(4) Making technical, nonsubstantive amendments for style,

clarity, and consistency.

As affirmed by the records of votes of the members of your Committees on Tourism & Culture and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 471, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 471, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Tourism & Culture and Labor & Public Employment,

____________________________ KIRK CALDWELL, Chair		____________________________ JERRY L. CHANG, Chair