STAND. COM. REP. NO. 3122

Honolulu, Hawaii

RE:    H.B. No. 1847

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Economic Development, Environment, and Technology and Tourism and International Affairs, to which was referred H.B. No. 1847, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE SPORTS AND ENTERTAINMENT AUTHORITY,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish the Sports and Entertainment Authority to undertake and expand on the objectives and responsibilities of the Stadium Authority; coordinate and develop a thriving entertainment and sports industry in the State, including maintaining oversight of Aloha Stadium and promoting, attracting, and engaging Hawaii as an entertainment and sports training and event destination for local, national, and international events; and develop state-of-the-art facilities for the benefit of professional, amateur, and youth athletes;

     (2)  Provide opportunities for Hawaii residents and nonresidents to observe and participate in a variety of amateur and professional sporting and entertainment events; provide for the development of local and non-local athletic talent; and encourage active lifestyles and improve the health of Hawaii's keiki and adults;

     (3)  Establish the sports and entertainment authority special fund to receive fees and other monies for administration, operation, maintenance, promotion, and management of Aloha Stadium and entertainment and sports development in the State;

     (4)  Transfer powers and duties and funds from the Stadium Authority to the Sports and Entertainment Authority; and

     (5)  Repeal chapter 109, Hawaii Revised Statutes, which includes repeal of the Stadium Authority, its duties and powers, and the stadium and Kapolei recreational sports complex special funds.

     Your Committees received testimony in support of this measure from the Office of the Lieutenant Governor, Outrigger Hotels Hawaii, Chamber of Commerce Hawaii, and one individual.  Your Committees received testimony in opposition to this measure from the Department of Accounting and General Services, Department of the Attorney General, Windward Ahupua‘a Alliance, and three individuals.  Your Committees received comments on this measure from the Department of Budget and Finance; Department of Business, Economic Development, and Tourism; Office of Hawaiian Affairs; Hawai‘i Tourism Authority; Stadium Authority; and Grassroot Institute of Hawaii.

     Your Committees find that Hawaii's unique geographic location and natural landscape make it a prime location for ocean sports, training in different climates and elevations, and a centralized venue for attracting concerts; international rugby, soccer, and football; and other events.  Hawaii has the potential to establish itself as a premier destination for entertainment and sporting events; however, the State needs to develop a comprehensive plan to ensure that Hawaii can sustain sport and entertainment events.

     Your Committees have amended this measure by:

     (1)  Deleting language that would have allowed the Sports and Entertainment Authority (Authority) to undertake and expand the objectives and responsibilities of the Stadium Authority, including oversight of Aloha Stadium;

     (2)  Removing all references to Aloha Stadium, the Stadium Authority, Stadium Manager, and Deputy Manager;

     (3)  Increasing the membership of the Authority to include at least one representative from the Department of Business, Economic Development, and Tourism; Hawaii Tourism Authority; Stadium Authority; and performing arts community;

     (4)  Creating a Deputy Sports Coordinator position;

     (5)  Deleting language that would have allowed the Authority to acquire sports venue and entertainment facilities and contract for management of a state sports complex;

     (6)  Deleting language that would have allowed the Authority to contract for sports and entertainment industry research and statistics;

     (7)  Deleting language that would have established powers of the Chief Security officer, authority of law enforcement officers enforcing rules adopted by the Authority, and the sports and entertainment authority special fund;

     (8)  Deleting language that would have allocated a portion of transient accommodations taxes to the special fund;

     (9)  Deleting language that would have transferred powers and duties and funds from the Stadium Authority to the Sports and Entertainment Authority;

    (10)  Deleting language that would have repealed chapter 109, Hawaii Revised Statutes, which includes the Stadium Authority, its duties and powers, and the stadium and Kapolei recreational sports complex special funds;

    (11)  Amending section 1 to reflect its amended purpose; and

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

     As affirmed by the records of votes of the members of your Committees on Economic Development, Environment, and Technology and Tourism and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1847, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1847, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Environment, and Technology and Tourism and International Affairs,

________________________________ J. KALANI ENGLISH, Majority Leader

________________________________ GLENN WAKAI, Chair