STAND. COM. REP. NO. 57

Honolulu, Hawaii

RE:    S.B. No. 1226

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Tourism, to which was referred S.B. No. 1226 entitled:

"A BILL FOR AN ACT RELATING TO THE TOURISM SPECIAL FUND,"

begs leave to report as follows:

     The purpose of this measure is to reduce the percentage of transient accommodations tax that is deposited into the tourism special fund.

     Specifically, this measure reduces the percentage of transient accommodations tax that is deposited into the tourism special fund from 34.2 per cent to 32.6 per cent.

     Your Committee received testimony in opposition to this measure from the Department of Business, Economic Development, and Tourism, the Hawaii Tourism Authority, the Hawaii Hotel and Lodging Association, and the Outrigger Hotels.  The Tax Foundation of Hawaii submitted comments on this measure.

     Your Committee finds that concerns have been raised regarding the expenditure of monies in the tourism special fund by the Hawaii Tourism Authority.

     In response to the opposition submitted, your Committee amended this measure by deleting the specific percentage allocation of transient accommodations tax that is deposited into the tourism special fund and left the amount unspecified to promote further discussion on the matter.

     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. 1226, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1226, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism,

____________________________

CLARENCE K. NISHIHARA, Chair