STAND. COM. REP. NO. 2243

Honolulu, Hawaii

RE: S.B. No. 2446

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, Water and Land, and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 2446 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 require a percentage of the Hawaii Tourism Authority's budget to be expended by the Department of Land and Natural Resources and counties to protect and enhance the State's infrastructure and natural resources if the number of visitor arrivals exceeds ten million to the State, or 6,500,000 to any county.

Your Committees received testimony in support of this measure from the Environmental Caucus of the Democratic Party of Hawaii, Sierra Club of Hawai‘i, The Trust for Public Land, and twenty-three individuals. Your Committees received testimony in opposition to this measure from the Hawaii Tourism Authority and one individual. Your Committees received comments on this measure from the Department of Land and Natural Resources, Life of the Land, and one individual.

Your Committees find that although the ever increasing number of visitors to Hawaii each year has played an important role in the local economy, the visitor impacts on infrastructure and natural resources has not gone unnoticed. With many industry experts anticipating visitor arrivals to exceed ten million within the next five years, your Committees are concerned about the impact of visitors on the quality of life of Hawaii residents. Your Committees find that dedicating funds from the Hawaii Tourism Authority's budget for the development and maintenance of infrastructure and conservation of natural resources recognizes the tourism industry's dependency on the infrastructure needed to accommodate visitors and the natural beauty that attracts visitors to the islands.

Your Committees further find that the Hawaii Tourism Authority publishes a five-year strategic plan and that Goal 1 of the Five-Year Strategic Plan 2016 is to improve the integrity of the destination, with one of the Goal 1 objectives being to be a better steward of the destination and to specifically increase support for programs that manage, improve, and protect Hawaii's natural environment and areas frequented by visitors.

Your Committees would like greater assurance that the Hawaii Tourism Authority is on track to meet the goals set in its Five-Year Strategic Plan 2016, particularly Goal 1. Your Committees request that the Department of Land and Natural Resources consult with the Hawaii Tourism Authority and make recommendations on the Authority's actions thus far and any further actions the Authority should take to enhance the State's natural resources.

Your Committees have amended this measure by:

(1) Reducing the threshold of visitor arrivals that triggers the budget allocations of this measure from ten million to nine million;

(2) Inserting language to require the Hawaii Tourism Authority to submit an action report to the Legislature prior to the convening of the Regular Session of 2019 describing in detail any actions the Authority has taken to execute Goal 1 of the Five-Year Strategic Plan 2016; and

(3) 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. 2446, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2446, 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