STAND. COM. REP. NO.  585

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 781

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 781 entitled:

"A BILL FOR AN ACT RELATING TO GAMING,"

begs leave to report as follows:

     The purpose of this bill is to establish gaming in Hawaii.  Specifically, this bill:

     (1)  Establishes the Hawaii Gaming Control Commission (Gaming Commission) to regulate gaming;

     (2)  Limits the casino site to a Waikiki stand-alone facility, not located within a hotel; and

     (3)  Appropriates $5,000,000 for fiscal year 2011-2012 to fund the operations of the Gaming Commission, to be reimbursed by the casino licensee.

     Radcliffe and Associates, LLC, SMS Research, and a concerned individual testified in support of this bill.  The Honolulu Police Department, Hawaii Family Forum, Hawaii Catholic Conference, Hawaii Coalition Against Legalized Gambling, Pro-Family Hawaii, Hawaii Coalition, Hawaii County League of Women Voters, and numerous concerned individuals testified in opposition to this measure.  The Office of Information Practices provided comments.

Your Committee has amended this bill by:

     (1)  Clarifying the use of documentation provided to or used by the Gaming Commission upon reviewing an application by a licensee to protect privacy and confidentiality rights;

     (2)  Adding provisions for a one-time license issuance fee;

     (3)  Changing the wagering tax imposed on the monthly gross receipts received from casino gaming from six and three-fourths percent to fifteen percent;

     (4)  Deleting provisions concerning the confidentiality of casino licensure records;

     (5)  Changing its effective date to January 7, 2059, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 781, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 781, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

GILBERT KEITH-AGARAN, Chair