STAND. COM. REP. NO.  567

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 379

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred H.B. No. 379, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FINANCING FOR A NEW HOSPITAL IN NORTH KONA,"

begs leave to report as follows:

The purpose of this measure is to assist with the financing of a new hospital facility for the West Hawaii community by authorizing the issuance of general obligation bonds for that purpose and allocating a portion of the Transient Accommodations Tax to offset costs related to the bond issuance, including interest and debt service.

The Hawaii Tourism Authority opposed this measure.  The Department of Budget and Finance, State-County Functions Working Group, Hawaii Health Systems Corporation Corporate Board of Directors, and the Tax Foundation of Hawaii offered comments.  

     Your Committee notes that the Auditor and the Department of Land and Natural Resources suggested that it would be prudent to defer decisions on Transient Accommodations Tax legislation introduced this year to the second year of the 28^th State Legislature so the State-County Functions Working Group can complete its work and report its findings and recommendations prior to the 2016 Regular Session.  Although your Committee acknowledges this concern, your Committee recommends that this measure proceed through the legislative process to facilitate further discussion.

     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 H.B. No. 379, H.D. 1, and recommends that it be referred to the Committee on Finance.

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

____________________________

TOM BROWER, Chair