STAND. COM. REP. NO. 3606

Honolulu, Hawaii

RE:    H.C.R. No. 245

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Tourism and Government Operations, to which was referred H.C.R. No. 245, H.D. 1, entitled:

"HOUSE CONCURRENT RESOLUTION STRONGLY URGING ALL ENTITIES INVOLVED IN THE STUDY, BOTH PUBLIC AND PRIVATE, TO WORK TOGETHER IN GOOD FAITH TO COMPLETE THE ONGOING STUDY ENTITLED THE "HAWAII CRUISE INDUSTRY STUDY," INTENDED TO ASSESS THE CURRENT AND POTENTIAL IMPACTS OF THE CRUISE INDUSTRY ON EACH ISLAND AND THE STATE UNTIL THE YEAR 2018,"

begs leave to report as follows:

     The purpose of this measure is to urge all entities, both public and private, who are involved in the "Hawaii Cruise Ship Industry Study," to work together in good faith toward the completion of the study.  The "Hawaii Cruise Industry Study" is intended to assess the current and potential impacts of the cruise industry on each island and the State until the year 2018.

     Your Committee deleted the contents of this measure and inserted a proposed Senate Draft 1, to request the Auditor to conduct an audit of the Aloha Tower Development Corporation, which is substantially similar to S.C.R. No. 54 (2008).

     Your Committee received comments on the proposed Senate Draft 1 from the Aloha Tower Development Corporation.

     The Aloha Tower Development Corporation has been involved in lawsuits concerning its development agreements since its establishment by Act 236, Session Laws of Hawaii 1981.  All of these lawsuits have raised troublesome issues that have hampered development.

     The Aloha Tower Development Corporation was last the subject of a state audit in 1987 by the Auditor, whose Report No. 87-13, found in pertinent part:  "The Aloha Tower redevelopment project is a concept that is flawed, and it should be shelved," citing a litany of systemic problems and erroneous assumptions.  Therefore, your Committee believes a management, performance, and financial audit of the Aloha Tower Development Corporation is appropriate at this time.

     Your Committee has amended the proposed Senate Draft 1 by:

     (1)  Deleting some references to lawsuits and litigation, as well as reference to the original mission of the Aloha Tower Development Corporation;

     (2)  Correcting factual inaccuracies, on the recommendation of the Aloha Tower Development Corporation; and

     (3)  Changing the title of this measure to reflect all of the amendments. 

     As affirmed by the record of votes of the members of your Committee on Tourism and Government Operations that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 245, H.D. 1, as amended herein, and recommends its adoption in the form attached hereto as H.C.R. No. 245, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Tourism and Government Operations,

____________________________

CLARENCE K. NISHIHARA, Chair