STAND. COM. REP. NO. 2735

Honolulu, Hawaii

RE:    S.B. No. 83

       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 Ways and Means, Higher Education and the Arts, and Tourism and International Affairs, to which was referred S.B. No. 83, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO APPROPRIATIONS,"

beg leave to report as follows:

     The purpose and intent of this measure is to address the costs incurred by the University of Hawaii intercollegiate athletics program.

     More specifically, this measure:

     (1)  Appropriates moneys from the tourism special fund for fiscal year 2016-2017 for travel expenses and subsidies incurred by the University of Hawaii intercollegiate athletics program; and

     (2)  Requires the Governor to determine whether the funding of the travel expenses and subsidies of the University of Hawaii intercollegiate athletics program from the tourism special fund should be extended beyond fiscal year 2016-2017, and if so, requires the Governor to take appropriate action to implement the funding.

     Your Committees received testimony in support of this measure from the University of Hawaii System; Grove Farm Company; Straub Clinic and Hospital; Chevron; KAI Hawaii, Inc.; The Maritime Group; and twenty-eight individuals. 

     Your Committees received testimony in opposition to this measure from Hawaii Tourism Authority, HTA Board of Directors, King Kamehameha Celebration Commission, Spike and Serve, Visitor Aloha Society of Hawaii Island, and one individual. 

     Your Committees find that creative and sustainable approaches must be developed to address the unique fiscal challenges the University of Hawaii System faces as a result of travel costs and subsidies for mainland teams.  Aligned with section 201B-7(a)(4), Hawaii Revised Statutes, that specifies "promotion, development, and coordination of sports-related activities and events" as a tourism-related activity, support for University of Hawaii team travel out of State and abroad and bringing mainland teams to Hawaii could be a highly effective opportunity to market the State in an authentic way.  Your Committees made it clear in their discussions during the hearing that resources for athletics need not come at the expense of nonprofit grants or county support, and other options that would not impact existing marketing efforts, as discussed in the hearing, should first be considered.  Your Committees also find that while it is appropriate to expend moneys from the tourism special fund for travel expenses and travel subsidies incurred by the University of Hawaii for intercollegiate athletics, the Governor should determine whether or not to continue such funding beyond fiscal year 2016-2017.

Your Committees note their intention that the funding provided in the measure be used for all athletic programs within the entire University of Hawaii system, including athletic programs of the University of Hawaii at Hilo.

     As affirmed by the records of votes of the members of your Committees on Ways and Means, Higher Education and the Arts, and Tourism and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 83, S.D. 1, and recommend that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Ways and Means, Higher Education and the Arts, and Tourism and International Affairs,

________________________________ BRIAN T. TANIGUCHI, Chair	________________________________ JILL N. TOKUDA, Chair
	________________________________ J. KALANI ENGLISH, Majority Leader