STAND. COM. REP. NO. 3064

Honolulu, Hawaii

RE:    H.B. No. 2434

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Tourism and Water and Land, to which was referred H.B. No. 2434, H.D. 2, entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to specify that the $3,000,000 transient accommodations tax revenue amount currently allocated for expenditure pursuant to agreement between the Hawaii Tourism Authority and the Board of Land and Natural Resources for natural resources and facilities management costs related to the Hawaii Tourism Authority's strategic plan shall be:

     (1)  Deposited into the special land and development fund, rather than the general fund; and

     (2)  Distributed among the beach restoration special fund, state parks special fund, trail and access program, and conservation and resources enforcement special fund.

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources and Hawaii Tourism Authority.  Your Committees received comments on this measure from the Tax Foundation of Hawaii.

     Your Committees find that it is important to allocate portions of the transient accommodations tax revenue for the planning, development, management, operations, and maintenance of Hawaii's lands and natural resources.  Your Committees recognize the importance of supporting programs to enhance Hawaii's lands and culture.  This measure will fund projects to preserve the pristine beauty of Hawaii for residents and visitors.

     Your Committees have amended this measure by making the measure effective upon approval.

     As affirmed by the records of votes of the members of your Committees on Tourism and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2434, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2434, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Tourism and Water and Land,

____________________________ MALAMA SOLOMON, Chair

____________________________ GILBERT KAHELE, Chair