STAND

STAND. COM. REP. NO. 1202

Honolulu, Hawaii

, 2005

RE: H.B. No. 471

H.D. 2

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Tourism and Labor, to which was referred H.B. No. 471, H.D. 2, entitled:

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

beg leave to report as follows:

The purpose of this measure is to amend the administrative responsibilities of the Hawaii Tourism Authority (HTA), as follows:

(1) To allow the HTA to develop and implement a personnel system to provide for the appointment of officers and employees, subject to the approval of the board of directors;

(2) To allow moneys in the convention center enterprise special fund and the tourism special fund to be placed in interest-bearing accounts if the depository furnishes security and to allow the HTA to invest the moneys in any investment approved by law; and

(3) To allow the HTA to set up a special account in the tourism special fund for depositing non-tax revenues received from public or private contracts, and to disburse those funds on public or private contracts.

Your Committees received testimony in support of this measure from the HTA. Testimony in opposition was received from the Tourism Liaison. Comments were received from the Attorney General.

This measure is intended to streamline the operations of the HTA, and to enhance its accountability and efficiency. Your Committees view the HTA as being a quasi-governmental body and should be given more latitude in its functioning while the HTA maintains its accountability for performance.

Your Committees have amended this measure by:

(1) Adding one ex officio nonvoting member to the board of directors consisting of the Executive Director of the State Foundation on Culture and the Arts;

(2) Clarifying that the appointment of officers by the HTA is on the condition that there are no anticipated revenue shortfalls and that funds have been appropriated;

(3) Adding that the HTA may encourage collaboration between the visitor industry, law enforcement agencies, community organizations, and businesses to develop and implement programs to improve visitor safety and security;

(4) Deleting reference to a personnel system;

(5) Deleting reference to setting up a special account for non-tax revenues, since the Attorney General recommended that this may be done administratively; and

(6) Adding a severability clause; and

(7) Changing the effective date to upon approval.

As affirmed by the records of votes of the members of your Committees on Tourism and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 471, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 471, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Tourism and Labor,

____________________________ BRIAN KANNO, Chair		____________________________ DONNA MERCADO KIM, Chair