STAND. COM. REP. NO. 908

Honolulu, Hawaii

RE:    S.B. No. 1084

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Ways and Means and Judiciary and Labor, to which was referred S.B. No. 1084, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOURISM AUTHORITY,"

beg leave to report as follows:

     The purpose and intent of this measure is to address the operations of the Hawaii Tourism Authority and the appointment process of certain members of its Board of Directors.

     More specifically, this measure requires:

(1)  The Governor to appoint the six members to the Hawaii Tourism Authority Board of Directors for which the Governor receives nomination lists from the President of the Senate and Speaker of the House of Representatives within ninety days of receipt of the lists;

(2)  The President of the Senate and Speaker of the House of Representatives to appoint the Hawaii Tourism Authority Board members if the Governor does not make the appointment within ninety days after receiving nomination lists;

(3)  That the minutes from an executive meeting of the Board be available to legislators upon request;

(4)  That information discussed at an executive meeting of the Board that relates to marketing plans and strategies be disclosed after execution of those plans and strategies;

(5)  The Authority to annually report summary descriptions and planned and actual expenditures of its contracts and agreements; and

(6)  The Authority to annually report a detailed budget for a two-year period.

     Your Committees received written comments in support of this measure from the Office of Information Practices and the Hawaii Lodging and Tourism Association.

     Your Committees received written comments on this measure from the Hawaii Tourism Authority and Kohala Coast Resort Association.

     Your Committees find that the Hawaii Tourism Authority has a crucial role in supporting and maintaining the State's top industry.  The Authority is best able to accomplish its role when it has a full board of directors.  Accordingly, your Committees believe that steps should be taken to ensure that Board vacancies are short in length.

Additionally, your Committees find that the Legislature and others have an important role in overseeing the actions and budget of the Hawaii Tourism Authority and its Board.  Your Committees believe that this measure will assist the Legislature and others in overseeing the Authority and its Board by ensuring that various Authority and Board information is accessible.

     Your Committees have amended this measure by:

(1)  Requiring the Hawaii Tourism Authority Board of Directors to approve Authority expenditures of more than $50,000;

(2)  Repealing the Authority's exemption from the State procurement code; but authorizing the Authority to adopt its own rules pursuant to chapter 91, Hawaii Revised Statutes, that would supersede procurement code rules for competitive bidding for certain contracts; and

(3)  Making statutory amendments to require, rather than authorize, the Authority to establish an advisory group and that meets monthly to advise the Authority;

(4)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

Your Committees note that the substantive amendments made to this measure have been made at the request of the Chair of the Senate Standing Committee with jurisdiction over the measure's subject matter.  

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1084, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1084, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary and Labor,

________________________________ GILBERT S.C. KEITH-AGARAN, Chair

________________________________ JILL N. TOKUDA, Chair