STAND. COM. REP. NO. 3209

Honolulu, Hawaii

RE: H.B. No. 1828

H.D. 3

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Economic Development, Tourism, and Technology and Public Safety, Intergovernmental, and Military Affairs, to which was referred H.B. No. 1828, H.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

beg leave to report as follows:

The purpose and intent of this measure is to allocate transient accommodations tax revenues to the Hawaii Tourism Authority to support initiatives, in conjunction with the Hawaii Lodging and Tourism Association, to mitigate the impact of the tourism industry on community areas and requires matching funds.

Your Committees received testimony in support of this measure from the O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Hawai‘i Lodging and Tourism Association, and one individual. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Hawaii Tourism Authority.

Your Committees find that the tourism industry has grown exponentially throughout the years and continues to grow, with the number of visitor arrivals expected to reach 10,000,000 by 2020. While your Committees acknowledge the amount of revenue that the tourism industry brings in for Hawaii, the impacts to state infrastructure and natural resources cannot go unnoticed. Your Committees recognize that the natural beauty of Hawaii has attracted millions of visitors to its hiking trails, beaches, and parks. However, your Committees also recognize that due to the high traffic of visitors to those hiking trails, beaches, and parks, surrounding communities have been adversely affected. Your Committees believe that the residents of Hawaii are the number one priority of the State, and any negative impacts on communities affected by the tourism industry must be mitigated to ensure a pristine environment for those communities and residents of the State.

Your Committees have amended this measure by:

(1) Deleting language that would have required the Hawaii Lodging and Tourism Association to work in conjunction with the Hawaii Tourism Authority and requiring, instead, that the Hawaii Lodging and Tourism Association provide input on any initiatives to mitigate the negative impacts on communities caused by tourism;

(2) Allocating funds to the Na Ala Hele program from the transient accommodations tax revenue to:

(A) Improve access to and maintain state-controlled recreational trails statewide; and

(B) Develop and implement a public awareness campaign that promotes hiker safety and hiker etiquette education and outreach;

(3) Inserting an appropriation of an unspecified amount to the fire departments of the counties of Maui, Kauai, Hawaii, and the City and County of Honolulu to support search and rescue missions of stranded hikers lost on hiking trails; and

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

Your Committees note that although the appropriation amounts are unspecified, the Department of Land and Natural Resources has supported an appropriation of $2,000,000 to improve the Na Ala Hele trail maintenance, safety, and education program, and the counties have previously requested an appropriation of $500,000 to be divided among the counties to support search and rescue missions of stranded hikers lost on hiking trails.

As affirmed by the records of votes of the members of your Committees on Economic Development, Tourism, and Technology and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1828, H.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1828, H.D. 3, 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 and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ GLENN WAKAI, Chair