STAND. COM. REP. NO. 419

Honolulu, Hawaii

RE:    S.B. No. 703

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Economic Development, Tourism, and Technology, Water and Land, and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 703 entitled:

"A BILL FOR AN ACT RELATING TO VISITOR IMPACTS,"

beg leave to report as follows:

     The purpose and intent of this measure is to use an objective formula to appropriate funds for the protection and enhancement of the State's infrastructure and natural resources.

     Your Committees received testimony in support of this measure from the Department of Land and Natural Resources, Conservation Council for Hawai‘i, Hawai‘i Lodging & Tourism Association; Malama Pupukea-Waimea, and eighteen individuals.  Your Committees received comments on this measure from the Department of Budget and Finance, Hawaii Tourism Authority, and County of Hawaii.

     Your Committees find it crucial to support the State's infrastructure and natural resources, which attract millions of tourists but also sustain heavy impacts, by allocating funds to further protect and enhance the State's infrastructure and natural resources.  With the steady rise of visitors to the State in recent years, your Committees find it important to ensure support to manage and maintain state parks, beaches, and other natural resources.

     Your Committees have amended this measure by:

     (1)  Removing all language allocating portions of the Hawaii Tourism Authority's budget to support the Department of Land and Natural Resources or to support the counties;

     (2)  Allocating two percent of the transient accommodations tax to the special land and development fund for the management, maintenance, and development of trails and trail access, state parks, beaches, and other natural resources;

     (3)  Changing the effective date to July 1, 2017; and

     (4)  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, Tourism, and Technology, Water and Land, and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 703, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 703, 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, Tourism, and Technology, Water and Land, and Public Safety, Intergovernmental, and Military Affairs,

________________________________ KARL RHOADS, Chair	________________________________ GLENN WAKAI, Chair
	________________________________ CLARENCE K. NISHIHARA, Chair