STAND. COM. REP. NO.  975-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 3024

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred S.B. No. 3024, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to increase financial resources to support conservation and natural resource protection programs in the State.  Specifically, this measure:

     (1)  Changes from $3,000,000 to an unspecified sum the amount of excess Transient Accommodations Tax revenues to be allocated to the Special Land and Development Fund, of which an unspecified amount will be allocated to the Conservation and Resources Enforcement Special Fund; and

     (2)  Provides that this allocation of the Transient Accommodations Tax revenues be subject to the mutual agreement of the Board of Land and Natural Resources and the Board of Directors of the Hawaii Tourism Authority in accordance with the Hawaii Tourism Authority Strategic Plan, and includes allocations to:

          (A)  The Beach Restoration Special Fund;

          (B)  The State Parks Special Fund;

          (C)  The Hawaii Statewide Trail and Access Program; and

          (D)  The Conservation and Resources Enforcement Special Fund.

The Hawaii Tourism Authority, Marine Conservation Institute, and a few concerned individuals supported this measure.  The Department of Budget and Finance, Department of Land and Natural Resources, and the Tax Foundation of Hawaii offered comments on this measure.

     Your Committee has amended this measure by specifying that $3,000,000 of Transient Accommodations Tax revenues be allocated to the Special Land and Development Fund, of which an unspecified amount will be allocated to the Conservation and Resources Enforcement Special Fund.

     Your Committee understands that the State of Hawaii is under pressure to find funds that would assist in the planning, development, management, operations, and maintenance of all lands and improvements under the control and management of the Department of Land and Natural Resources. 

     Although at least one member had serious concerns about charging fees for the use of state parks, your Committee suggests that it would be prudent for the State to consider revenue-generating measures, including user fees, to keep Hawaii's state parks open.  Your Committee is concerned that the closure of state parks because of insufficient funding would adversely affect the State's tourism industry.

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3024, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3024, S.D. 2, H.D. 1, and be referred to the Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committee on Tourism,

____________________________

TOM BROWER, Chair