STAND. COM. REP. NO. 712

Honolulu, Hawaii

RE:    S.B. No. 112

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 112 entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

begs leave to report as follows:

     The purpose and intent of this measure is to enhance Hawaii's appeal as a tourist destination by appropriating funds for the State to apply for a spaceport license from the Federal Aviation Administration.

     Your Committee finds that tourism is the primary economic driver in Hawaii and that new technology, increased visitor sophistication, and greater competition from other tourism markets require the expansion of Hawaii's tourism industry into new niche markets, such as space tourism.  Hawaii's application for a spaceport license would provide the State an opportunity to tap into a potential billion-dollar global industry that could significantly increase state revenues, create jobs, and promote economic development.

     Your Committee has amended this measure by changing its effective date to July 1, 2050, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 112, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 112, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair