SB2362

SECTION 1. The legislature finds that the entertainment and sports industries in Hawaii combine for an estimated $500 million and play a vital role in providing jobs, creating positive media exposure, and enhancing the quality of life for the community. In 2004, the United States sports industry was estimated at $213 billion, which is more than double the size of the United States automobile industry and seven times the size of the film industry.

The legislature further finds that Hawaii's unique culture, picturesque setting, and supporting industries combine to establish the State as a premier destination for entertainment and sports productions and events. The State must take an active role in the development and promotion of these multi-million dollar industries as a means of utilizing our natural environment, assets, and resources in establishing a strong economy.

The purpose of this Act is to establish the Hawaii entertainment and sports authority to strengthen and grow Hawaii's entertainment and sports industries through the promotion and development of productions, events, and other related activities in the State, including establishing Hawaii as a site for international sports and entertainment activities.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

hawaii entertainment and sports authority

§ -1 Definitions. As used in this chapter, unless the context clearly requires otherwise:

"Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or county.

"Authority" means the Hawaii entertainment and sports authority as established in section ‑2.

"Board" means the board of directors of the Hawaii entertainment and sports authority as established in section -2, and any successor thereto.

"Entertainment" means the entertainment industry which shall include but not be limited to films, television, theater, print advertisements, documentaries, art and comedy festivals, beauty pageants, concerts, and other events and productions.

"Plan" or "marketing plan" means the entertainment and sports marketing plan as established in section ‑6.

"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

"Special fund" means the Hawaii entertainment and sports special fund as established in section ‑8.

"Sports" means the sports industry which shall include but not be limited to all activities to produce an additional value through the production and marketing of sports-related products and services, such as professional sports teams and organizations; golf courses and golfing centers; motor racetracks; exercise and fitness facilities; dance schools and studios; and other related sports activities.

§ -2 Hawaii sports and entertainment authority; establishment; board. (a) There is established within the department of business, economic development, and tourism, the Hawaii sports and entertainment authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter.

(b) The authority shall be headed by a policy-making board of directors consisting of thirteen voting members, appointed by the governor as provided in section 26-34, except as otherwise provided by law; provided that:

(1) Of the thirteen public, voting members:

(A) Three shall be appointed by the governor from a list of three names submitted for each appointment by the president of the senate;

(B) Three members shall be appointed by the governor from a list of three names submitted for each appointment by the speaker of the house of representatives;

(D) Of all the members appointed under this paragraph, there shall be at least one representative each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; and

(E) The remaining members shall be appointed at-large;

(2) The director of business, economic development, tourism, or a designated representative, shall be an ex officio voting member;

(3) The executive director of the Hawaii tourism authority, or a designated representative, shall be an ex officio voting member;

(4) The president of the University of Hawaii, or a designated representative, shall be an ex officio voting member;

(5) The athletics director of the intercollegiate office of athletics of the University of Hawaii, or a designated representative, shall be an ex officio voting member;

(6) The chairperson of the board of land and natural resources, or a designated representative, shall be an ex officio voting members; and

(7) At least ten of the twelve voting members shall have knowledge, experience, and expertise in the areas of sports communication or management, sports tourism, visitor industry management, marketing, promotion, facilities management, transportation, retail, entertainment, or visitor attractions; provided that no more than five members shall represent, be employed by, or be under contract to any sector of the industry represented on the board;

(c) The members shall be appointed by the governor for terms of four years. Each public member shall hold office until the member's successor is appointed and qualified. Section 26-34 shall be applicable insofar as it relates to the number of terms and consecutive number of years a member may serve on the board.

(d) The board shall elect a chairperson from among the voting members.

(e) Seven voting members shall constitute a quorum and a minimum of seven affirmative votes shall be necessary for all actions by the authority. The members shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary in the performance of their duties.

(f) The board shall appoint an executive director, exempt from chapter 76 who shall oversee the authority staff; provided that the compensation package shall not include private sector moneys or other contributions. The board shall set the executive director's duties, responsibilities, holidays, vacations, leaves, hours of work, and working conditions. It may grant any other benefits as it deems necessary.

§ -3 Powers and duties. (a) Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(4) Make and alter bylaws for its organization and internal management;

(5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;

(6) Through its executive director, represent the authority in communications with the governor and with the legislature;

(7) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapters 76 and 78;

(8) Through its executive director purchase supplies, equipment, or furniture;

(9) Through its executive director allocate the space or spaces which are to be occupied by the authority and appropriate staff;

(10) Engage the services of qualified persons to implement the authority's entertainment and sports marketing plan or portions thereof as determined by the authority;

(11) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(12) Procure insurance against any loss in connection with its property and other assets and operations in any amounts and from any insurers as it deems desirable;

(13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source;

(14) Develop a vision and long-range plan for entertainment, sports tourism, educational or training programs, and sports-related activities and events, in Hawaii;

(15) Develop, coordinate, and implement state policies and directions for entertainment, sports tourism, and related activities taking into account the economic, social, and physical impacts of entertainment and sports tourism on the State; provided that the authority shall support the efforts of other state and county departments or agencies to manage, improve, and protect Hawaii's entertainment venues, sports facilities, natural environment, and areas frequented by visitors;

(16) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate either directly or through developers, an entertainment or sports education or training venue or facility;

(17) Set and collect rents, fees, charges, or other payments for the lease, sue, occupancy, or disposition of an entertainment or sports venue or facility under its authority without regard to chapter 91;

(18) Notwithstanding chapter 171, acquire lease as lessee or lessor, own, rent, hold, and dispose of an entertainment or sports venue or facility under its authority in the exercise of its powers and the performance of duties under this chapter;

(19) Maintain a permanent, strong focus on marketing and promotion;

(20) Conduct market development-related research and economic impact studies as necessary;

(21) Coordinate all agencies and advise the private sector in the development of entertainment and sports-related productions, activities, and resources;

(22) Market and promote entertainment and sports-related productions, activities, and events;

(23) Coordinate the development of new entertainment and sports industry initiatives with the county sports and entertainment commission and other persons in the public sector and private sector;

(24) Establish a public information and educational program to inform the public of the entertainment industry, sports tourism, and related problems;

(25) Encourage the development of entertainment and sports administration or management, educational, training, and career counseling programs; and

(26) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the entertainment and sports industry in the State and take appropriate action as necessary.

(b) The authority shall:

(1) Promote, market, and develop the sports industry and sports-related activities and events in the State, including the development of sports venues for hosting international sporting events;

(2) Attract, promote, market, and develop world-class film and entertainment events and productions in the State;

(3) Develop and implement an entertainment and sports marketing plan, which shall be updated every year, to promote and market the State as a desirable entertainment and sports tourism destination;

(4) Arrange for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning social, economic, and environmental aspects of the entertainment and sports industry development in the State;

(5) Provide technical or other assistance to agencies and private industry upon request; and

(6) Review annually the expenditure of public funds by any visitor industry organization with which the authority contracts to perform entertainment or sports tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of the entertainment industry and sports tourism. The authority shall also prepare annually a report of expenditures, including descriptions and evaluations of events or programs funded, together with any recommendations the authority may make and shall submit the report to the governor and the legislature as part of the annual report required under section ‑13.

(c) The authority shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this chapter, and to perform other functions required or authorized by law.

§ -4 Private attorneys; authorized. (a) The board may appoint or retain by contract one or more attorneys who are independent of the attorney general to provide legal services for the board solely in cases of contract negotiations in which the attorney general lacks sufficient expertise; provided that the independent attorney shall consult and work in conjunction with the designated deputy attorney general assigned to the Hawaii entertainment and sports authority.

(b) The board may fix the compensation of the attorneys appointed or retained pursuant to this section. Attorneys appointed or retained by contract shall be exempt from chapters 76, 78, and 88.

§ -5 Meetings of the board. (a) The meetings of the board shall be open to the public as provided in section 92-3, except that when it is necessary for the board to receive information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interests of the enterprise, the board may enter into an executive meeting that is closed to the public.

(b) The board shall be subject to the procedural requirements of section 92-4, and this authorization shall be in addition to the exceptions listed in section 92-5, to enable the board to respect the proprietary requirements of enterprises with which it has business dealings.

§ -6 Entertainment and sports industry marketing plan; measures of effectiveness. (a) The authority shall be responsible for developing a strategic entertainment and sports marketing plan that shall be updated every year and includes the following:

(1) Statewide promotional efforts and programs;

(2) Targeted markets;

(3) Efforts to enter into brand marketing projects that make effective use of cooperative advertising programs;

(4) Measures of effectiveness for the authority's promotional programs; and

(5) Coordination of marketing plans of all destination marketing organizations receiving state funding prior to finalization of the authority's marketing plan.

(b) In accordance with subsection (a), the authority shall be responsible for developing measures of effectiveness to assess the overall benefits and effectiveness of the entertainment and sports marketing plan and include documentation of the directly attributable benefits of the plan to the following:

(1) Hawaii's sports industry;

(2) Hawaii's entertainment industry;

(3) Employment in Hawaii;

(4) State taxes; and

(5) The State's lesser known and underutilized entertainment venues and sports facilities.

§ -7 Entertainment and sports industry-related activities. (a) The authority may enter into contracts and agreements that include the following:

(1) Entertainment or sports tourism promotion, marketing, and development;

(2) Market development-related research;

(3) Product development and diversification issues focused on entertainment or sports-related visitors;

(4) Promotion, development, and coordination of entertainment or sports-related productions, activities, and events;

(5) Promotion of Hawaii, through a coordinated statewide effort, as an entertainment or sports destination;

(6) Reduction of barriers to travel; and

(7) Any and all other activities necessary to carry out the intent of this chapter;

provided that for any contract or agreement valued at $25,000 and over, the authority shall provide notice to the president of the senate and the speaker of the house of representatives on the same day that notification of the same is provided to the governor.

(b) The authority may delegate to staff the responsibility for soliciting, awarding, and executing contracts, and monitoring and facilitating any and all functions developed in accordance with subsection (a).

§ -8 Hawaii entertainment and sports special fund; established. (a) There is established the entertainment and sports special fund, into which shall be deposited:

(1) A portion of the revenues from any transient accommodations tax, as provided by section 237D-6.5;

(2) Appropriations by the legislature to the special fund;

(3) Gifts, grants, memberships, sponsorships, and other funds accepted by the authority; and

(4) All interest and revenues or receipts derived by the authority from any project or project agreements.

(b) Moneys in the special fund may be:

(1) Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or

(2) Otherwise invested by the authority until such time as the moneys may be needed; provided that the authority shall limit its investments to those listed in section 36-21.

All interest accruing from the investment of these moneys shall be credited to the special fund.

§ -9 Exemptions. (a) All revenues and receipts derived by the authority from any project or a project agreement or other agreement pertaining thereto shall be exempt from all state taxation. Any right, title, and interest of the authority in any project shall also be exempt from all state taxation. Except as otherwise provided by law, the interest of a qualified person or other user of a project or a project agreement or other agreements related to a project shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the qualified person or user.

(b) The authority shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for project agreements, construction contracts, lease and sublease agreements, or other contracts unless a project agreement with respect to a project otherwise shall require.

(c) Notwithstanding any law to the contrary, the authority shall be exempt from section 26-35 with the exception of section 26-35(a)(2), (3), (7), and (8) and subsection (b).

§ -10 Assistance by state and county agencies. Any state or county agency may render services upon request of the authority.

§ -11 Declaration of public function, purpose, and necessity. The powers and functions granted to and exercised by the authority under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.

§ -12 Court proceedings; preferences; venue. (a) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be preferred over all other civil cases, except election cases, in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.

(b) Upon application of counsel to the authority, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the authority may be allowed to intervene.

(c) Any action or proceeding to which the authority, the State, or the county may be party, in which any question arises as to the validity of this chapter or any portion of this chapter, or any action of the authority may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.

(d) Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.

(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641, and the appeal shall be given priority.

§ -13 Annual report. The authority shall submit a complete and detailed report of its activities, expenditures, and results to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

"§36-27 Transfers from special funds for central service expenses. Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

(7) Housing loan program revenue bond special fund;

(8) Housing project bond special fund;

(9) Aloha Tower fund created by section 206J-17;

(10) Funds of the employees' retirement system created by section 88-109;

(11) Unemployment compensation fund established under section 383-121;

(12) Hawaii hurricane relief fund established under chapter 431P;

(13) Hawaii health systems corporation special funds;

(14) Tourism special fund established under section 201B‑11;

(15) Universal service fund established under chapter 269;

(16) Emergency and budget reserve fund under section 328L‑3;

(17) Public schools special fees and charges fund under section 302A-1130(f);

(18) Sport fish special fund under section 187A-9.5;

(19) Neurotrauma special fund under section 321H-4;

(20) Deposit beverage container deposit special fund under section 342G-104;

(21) Glass advance disposal fee special fund established by section 342G-82;

(22) Center for nursing special fund under section 304A‑2163;

(23) Passenger facility charge special fund established by section 261-5.5;

(24) Solicitation of funds for charitable purposes special fund established by section 467B-15;

(25) Land conservation fund established2 by section 173A-5;

(26) Court interpreting services revolving fund under section 607-1.5;

(27) Trauma system special fund under section 321-22.5;

(28) Hawaii cancer research special fund;

(29) Community health centers special fund; [~~and~~]

(30) Emergency medical services special fund; and

(31) Hawaii entertainment and sports special fund;

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D-1;

(2) Special out-of-school time instructional program fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Funds of the employees' retirement system created by section 88-109;

(9) Unemployment compensation fund established under section 383-121;

(10) Hawaii hurricane relief fund established under chapter 431P;

(11) Convention center enterprise special fund established under section 201B-8;

(12) Hawaii health systems corporation special funds;

(13) Tourism special fund established under section 201B‑11;

(14) Universal service fund established under chapter 269;

(15) Emergency and budget reserve fund under section 328L‑3;

(16) Public schools special fees and charges fund under section 302A-1130(f);

(17) Sport fish special fund under section 187A-9.5;

(18) Neurotrauma special fund under section 321H-4;

(19) Center for nursing special fund under section 304A‑163;

(20) Passenger facility charge special fund established by section 261-5.5;

(21) Court interpreting services revolving fund under section 607-1.5;

(22) Trauma system special fund under section 321-22.5;

(23) Hawaii cancer research special fund;

(24) Community health centers special fund; [~~and~~]

(25) Emergency medical services special fund; and

(26) Hawaii entertainment and sports special fund;

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 5. Section 201B-2, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The board shall appoint an executive director, exempt from chapters 76 and 88 who shall oversee the authority staff; provided that the compensation package, including salary, shall not exceed nine per cent of the five per cent authorized for administrative expenses under section 201B-11(c); and provided further that the compensation package shall not include private sector moneys or other contributions. The board shall set the executive director's duties, responsibilities, holidays, vacations, leaves, hours of work, and working conditions. It may grant such other benefits as it deems necessary.

[~~The board may appoint a sports coordinator, exempt from chapters 76, 78, and 88, who shall provide management services for all sporting events supported through the authority.~~]"

SECTION 6. Section 201B-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; and provided further that the authority may enter into agreements for the use of the convention center facility for a period of up to ten years;

(4) Make and alter bylaws for its organization and internal management;

(5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;

(6) Through its executive director represent the authority in communications with the governor and the legislature;

(7) Through its executive director, provide for the appointment of officers, agents, and employees, subject to the approval of the board, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if there is no anticipated revenue shortfall in the tourism special fund and funds have been appropriated by the legislature and allotted as provided by law;

(8) Through its executive director purchase supplies, equipment, or furniture;

(9) Through its executive director allocate the space or spaces that are to be occupied by the authority and appropriate staff;

(10) Engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the authority;

(11) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(12) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

(13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source, including any revenues or proceeds arising from the operation or use of the convention center;

(14) Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State and its natural resources infrastructure; provided that the authority shall support the efforts of other state and county departments or agencies to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors;

(15) Have a permanent, strong focus on marketing and promotion;

(16) Conduct market development-related research as necessary;

(17) Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources;

(18) Work to eliminate or reduce barriers to travel in order to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development;

[~~(19)~~ ~~Market and promote sports-related activities and events;~~

~~(20)~~] (19) Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, in conjunction with the Hawaii entertainment and sports authority, culture, health and wellness, education, technology, agriculture, and nature tourism;

[~~(21)~~] (20) Establish a public information and educational program to inform the public of tourism and tourism-related problems;

[~~(22)~~] (21) Encourage the development of tourism educational, training, and career counseling programs;

[~~(23)~~] (22) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary;

[~~(24)~~] (23) Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201B-9;

[~~(25)~~] (24) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;

[~~(26)~~] (25) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and

[~~(27)~~] (26) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility."

SECTION 7. Section 201B-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The authority may enter into contracts and agreements that include the following:

(1) Tourism promotion, marketing, and development;

(2) Market development-related research;

(3) Product development and diversification issues focused on visitors;

[~~(4)~~ ~~Promotion, development, and coordination of sports-related activities and events;~~

~~(5)~~] (4) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;

[(6)] (5) Reduction of barriers to travel;

[[~~(7)]~~] (6) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2003, and thereafter the contract for management of the convention center facility shall include marketing for all uses of the facility; and

[[~~(8)]~~] (7) Any and all other activities necessary to carry out the intent of this chapter;

provided that for any contract or agreement valued at $25,000 and over, the authority shall provide notice to the speaker of the house of representatives and the president of the senate on the same day that such notification is given to the governor."

SECTION 8. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Revenues collected under this chapter shall be distributed as follows, with the excess revenues to be deposited into the general fund:

(1) 17.3 per cent of the revenues collected under this chapter shall be deposited into the convention center enterprise special fund established under section 201B-8; provided that beginning January 1, 2002, if the amount of the revenue collected under this paragraph exceeds $33,000,000 in any calendar year, revenues collected in excess of $33,000,000 shall be deposited into the general fund;

(2) 34.2 per cent of the revenues collected under this chapter shall be deposited into the tourism special fund established under section 201B-11 for tourism promotion and visitor industry research; provided that [~~beginning~~]:

(A) Beginning on July 1, 2008, the first $ deposited shall be transferred to the Hawaii entertainment and sports special fund established under section ‑8 for the development of the entertainment and sports industries in the State;

(B) Beginning on July 1, 2002, of the [~~first~~] next $1,000,000 in revenues deposited:

[~~(A)~~] (i) Ninety per cent shall be deposited into the state parks special fund established in section 184-3.4; and

[~~(B)~~] (ii) Ten per cent shall be deposited into the special land and development fund established in section 171-19 for the Hawaii statewide trail and access program;

provided that of the 34.2 per cent, 0.5 per cent shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; provided further that of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds shall be deposited into the tourism emergency trust fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency trust fund; and

(3) 44.8 per cent of the revenues collected under this chapter shall be transferred as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent.

All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection."

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 to be deposited into the Hawaii entertainment and sports special fund.

SECTION 10. There is appropriated out of the Hawaii entertainment and sports special fund of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the establishment of the Hawaii entertainment and sports authority and the development of the entertainment and sports industries in the State; provided that the sum appropriated shall be in addition to the sums appropriated out of the Hawaii entertainment and sports special fund in the supplemental appropriations Act or any other Act.

The sum appropriated shall be expended by the Hawaii entertainment and sports authority.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2362
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII