STAND. COM. REP. NO. 2598

Honolulu, Hawaii

RE:    S.B. No. 490

       S.D. 3

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 S.B. No. 490, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOURISM AUTHORITY,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide funding to develop and implement initiatives that take advantage of expanded visa programs to increase travel opportunities for international visitors to visit Hawaii.

The measure provides funding by increasing the allocation of the transient accommodations tax revenue to be deposited into the tourism special fund from $69,000,000 to $71,000,000 and then allocating the $2,000,000 to be expended for the development and implementation of such initiatives.

     Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that the federal government has recently announced initiatives to significantly increase travel and tourism in the United States.  This measure will help promote economic development and expand Hawaii's tourism by targeting international markets.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     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. 490, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 490, S.D. 3.

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

____________________________

DAVID Y. IGE, Chair