STAND. COM. REP. NO. 3298

Honolulu, Hawaii

RE:    H.B. No. 2314

       H.D. 1

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2314, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to change the allocation of transient accommodations tax revenues to the convention center enterprise special fund from a calendar year to a fiscal year basis.

     Written comments in support of the measure were submitted by the Hawaii Tourism Authority.  Written comments on the measure were submitted by the Department of Budget and Finance.

     Your Committee finds that expenditures from the convention center enterprise special fund are made on a fiscal year basis, but deposits into the fund are made on a calendar year basis.  This results in occasional shortfalls in the fund's ability to pay the debt service for the Convention Center.  This measure will align the basis on which funds are deposited into and expended from the fund and make convention center debt service more efficient.

     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 H.B. No. 2314, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair