Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Tourism and Business and Economic Development, to which was referred S.B. No. 2965 entitled:

beg leave to report as follows:

The purpose of this measure is to amend Act 178, Session Laws of Hawaii 2005, the general appropriations Act, to add a proviso to transfer a sum of money from operating expenses of the Hawaii Tourism Authority (HTA) to the economic planning and research program of the Department of Business, Economic Development, and Tourism (DBEDT).

Your Committees received testimony in support of this measure from DBEDT and HTA.

The sum involved is $1,327,887 which was designated as a "B" expenditures from the general fund. This measure designates the same appropriation as a "U" funds for interdepartmental transfer.

According to testimony of DBEDT, the funds involved are for producing basic data on tourism in Hawaii. These funds should appropriately be transferred from the HTA rather than expended from the tourism special fund. This amendment is important for the fiscal management of funds and will have no impact upon the operations or effectiveness of DBEDT's tourism data program.

Your Committees have amended this measure on the recommendation of DBEDT as follows:

(1) Deleting reference to the tourism special fund; and

(2) Making the transfer for fiscal year 2006-2007.

As affirmed by the records of votes of the members of your Committees on Tourism and Business and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2965, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2965, S.D. 1, and be referred to the Committee on Ways and Means.