STAND. COM. REP. NO. 2496

Honolulu, Hawaii

RE: S.B. No. 2224

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Economic Development, Tourism, and Technology, to which was referred S.B. No. 2224 entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require all hotelkeepers to post, no later than January 1, 2019, in each hotel room occupied by a hotel guest, an ocean safety information sheet development by the Hawaii Tourism Authority; and

(2) Require the Hawaii Tourism Authority to develop an ocean safety information sheet to be posted in each hotel room.

Prior to the hearing on this measure, your Committee posted and made available for public review a proposed S.D. 1, which deletes the contents of the measure and inserts language to:

(1) Rename the convention center enterprise special fund as the convention center operations and maintenance special fund;

(2) Repeal the allocation of the transient accommodations tax to that fund and amend the authorized uses of the fund; and

(3) Redistribute the allocation of transient accommodation tax revenue from the Hawaii Tourism Authority to other state agencies for certain purposes.

Your Committee received testimony in support of the proposed S.D. 1 from the Department of Land and Natural Resources. Your Committee received testimony in opposition to the proposed S.D. 1 from the Department of Business, Economic Development, and Tourism and the Hawaii Tourism Authority. Your Committee received comments on the proposed S.D. 1 from the Department of Budget and Finance, Office of the Auditor, and University of Hawai‘i System.

Your Committee finds the existing allocation of revenue from the transient accommodations tax should be amended to address the specific needs of agencies that work with, or are impacted by, the tourism industry. Your Committee believes that directly allocating the revenue from the transient accommodations tax to the appropriate agency, as proposed by this measure, will better ensure that the specific areas affected by the tourism industry receive resources needed to remedy any concerns that arise from the tourism industry.

Your Committee further finds that the definition of "administrative expenses", as currently used in section 201B-11, Hawaii Revised Statutes, is vague and has resulted in confusion as to the specific expenses for which the tourism special fund may be used. Your Committee believes that the definition needs to be refined to avoid any further confusion.

Accordingly, your Committee has amended this measure by adopting the proposed S.D. 1 and further amending the measure by:

(1) Defining "administrative expenses", as used in section 201B-11(c), Hawaii Revised Statutes, as office equipment, salaries, and supplies; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2224, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2224, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Tourism, and Technology,

________________________________

GLENN WAKAI, Chair