STAND. COM. REP. NO. 3275

Honolulu, Hawaii

RE:    H.B. No. 2434

       H.D. 2

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2434, H.D. 2, 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 increase financial resources to support conservation and natural resource protection programs in the State.

     More specifically this measure specifies that the portion of transient accommodations tax revenues 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, statewide trail and access program, and conservation and resources enforcement special fund.

     Your Committee received written comments in support of this measure from the Department of Land and Natural Resources, Hawaii Tourism Authority, The Chamber of Commerce of Hawaii, and Hawaii Lodging and Tourism Association.  The Tax Foundation of Hawaii submitted written comments on the measure.

     Your Committee finds that the Legislature enacted Act 161, Session Laws of Hawaii 2013, which modified the allocation of transient accommodations tax revenue to, among other things, provide a consistent source of funds for Hawaii to effectively market itself in a competitive tourist industry, to maintain tourist attractions, and to enhance the visitor experience.  Your Committee also finds that although Act 161 set aside a portion of transient accommodations tax revenues for this purpose, it did not provide the authority to expend these funds.

     Your Committee has amended this measure by:

     (1)  Inserting language to specifically authorize allocations of transient accommodations tax revenues from the special land and development fund to the beach restoration special fund, state parks special fund, statewide trail and access program, and conservation and resources enforcement special fund; and

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

     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. 2434, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2434, H.D. 2, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair