STAND. COM. REP. NO.  337

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 681

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Tourism, Culture, & International Affairs, to which was referred H.B. No. 681 entitled:

"A BILL FOR AN ACT RELATING TO THE TRANSIENT ACCOMMODATIONS TAX,"

begs leave to report as follows:

     The purpose of this bill is to earmark an unspecified percentage of the allocation from the Transient Accommodations Tax (TAT) to the Tourism Special Fund (Special Fund) to be used for tourism product development.

     The County of Hawaii Department of Research and Development, Airports Concessionaires Committee, HMSHost, International Currency Exchange, Kinki Nippon Tourist Company, Native Hawaiian Hospitality Association, Nishihama & Kishida, CPAs, Inc., Ilioulaokalani Coalition, Nature Conservancy, Council for Native Hawaiian Advancement, Association of Hawaiian Civic Clubs, West Kauai Business and Professional Association, Smarte Carte, Pookela, Poipu Beach Resort Association, Moanalua Gardens Foundation, Hawaii Maoli, Blind Vendors Ohana, Inc., King Kamehameha Celebration Commission, and many concerned individuals testified in support of this bill.  A concerned individual supported this measure with amendments.

     The Department of Business, Economic Development, and Tourism and Hawaii Hotel and Lodging Association opposed this bill.  The Hawaii Tourism Authority, Visitor Aloha Society of Hawaii, Garden Island Arts Council, Outrigger Hotels, Tax Foundation of Hawaii, Kona Coffee Cultural Festival, Holualoa Foundation for Arts and Culture, Hawaii Capital Cultural Coalition, Academy of Hospitality and Tourism, and several concerned individuals offered comments.

     Your Committee has amended this bill by:

     (1)  Specifying that 40 percent of the TAT allocation to the Special Fund be used for tourism product development and cultural programs;

     (2)  Changing the effective date to July 1, 2112, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Tourism, Culture, & International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 681, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 681, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Tourism, Culture, & International Affairs,

____________________________

JOEY MANAHAN, Chair