STAND. COM. REP. NO.  1358

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 679

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committees on Tourism & Culture and Public Safety & Military Affairs, to which was referred S.B. No. 679, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO EMERGENCIES,"

beg leave to report as follows:

     The purpose of this bill is to enhance the safety and welfare of visitors and residents in Hawaii by:

     (1)  Requiring the Board of Directors (Board) of the Hawaii Tourism Authority (HTA) to request the Governor to declare that a tourism emergency exists if the Board of HTA determines that an adverse effect on Hawaii's tourism industry resulting from world conflict, terrorist threat, natural disaster, or disease outbreak causes a substantial interruption of commerce in Hawaii and adversely affects the welfare of the people;

     (2)  Upon the Governor's declaration that a statewide emergency exists triggering a tourism emergency, allowing HTA to develop and implement measures to respond to tourism emergencies;

     (3)  Establishing the Tourism Emergency Trust Fund (Trust Fund) to provide for the development and implementation of emergency measures to respond to the tourism emergency; and

     (4)  Specifying that, except for funds authorized for expenditure by the Legislature, funds in the Tourism Special Fund shall be deposited into the Trust Fund to maintain the balance of $5,000,000.

     HTA, The Chamber of Commerce of Hawaii, and the Hawaii Hotel & Lodging Association supported this bill.  The Department of Business, Economic Development, and Tourism supported the intent of this bill.  The Tax Foundation of Hawaii submitted comments.

     Your Committees have amended this measure by:

     (1)  With respect to the Board of HTA's request for the Governor to declare a tourism emergency, removing the condition that adverse effects on Hawaii's tourism industry resulting from world conflict, terrorist threat, natural disaster, or disease outbreak, adversely affect the welfare of the people;

     (2)  Deleting the requirement that a tourism emergency declaration must be triggered by a "statewide" emergency;

     (3)  Clarifying that if the Governor declares that an emergency exists triggering a tourism emergency, the HTA is required to implement measures to respond to the emergency;

     (4)  Making it effective upon approval; and

     (5)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the records of votes of the members of your Committees on Tourism & Culture and Public Safety & Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 679, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 679, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Tourism & Culture and Public Safety & Military Affairs,

____________________________ CINDY EVANS, Chair

____________________________ RYAN I. YAMANE, Chair