Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Tourism, to which was referred S.B. No. 1727 entitled:

begs leave to report as follows:

The purpose of this measure is to require state agencies that use state funds to market products made in Hawaii to report all expenditures and allocations to the Hawaii Tourism Authority (HTA), and to require the HTA to coordinate and oversee all marketing efforts of products made in Hawaii.

Testimony in support of this measure was submitted by the Hawaii Marketing Alliance. Testimony in opposition to this measure was submitted by the Department of Agriculture and the Hawaii Tourism Authority. Comments were provided by the Department of Business, Economic Development, and Tourism.

Your Committee finds that various state agencies are using state funding independently to market products made in Hawaii. By centralizing and coordinating the marketing of made in Hawaii products, state funds can be better utilized and conserved to avoid duplication of efforts. Your Committee believes that this measure will ensure that state funds are used in a conservative and creative manner without being wasteful or redundant.

Your Committee amended this measure by transferring the duties of coordination and oversight of made in Hawaii products from the Hawaii Tourism Authority to the Department of Business, Economic Development, and Tourism, with the cooperation and participation of the Authority.

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 S.B. No. 1727, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1727, S.D. 1, and be referred to the Committee on Ways and Means.