STAND. COM. REP. NO. 1873-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2504

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2504, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to address financing issues related to debt, maintenance, and operations of the Hawaii Convention Center by:

(1) Forgiving the debt and liabilities owed to the State by the Hawaii Tourism Authority (Authority) for Convention Center construction costs and related interest;

(2) Relieving the Convention Center Enterprise Special Fund from paying debts owed to the Department of Budget and Finance and reducing the cap on the amount of transient accommodations tax revenues allocated to the Special Fund;

(3) Establishing a Convention Center Repair and Maintenance Special Fund and a Convention Center Emergency Special Fund, allocating a portion of transient accommodations tax revenues to these Funds for fiscal years 2018-2019, 2019-2020, 2020-2021, and 2021-2022, and requiring the Authority to report on expenditures and balances in these Funds; and

(4) Annually increasing the allocation of transient accommodations tax revenues to the Tourism Emergency Special Fund from 2018 to 2021.

The Authority supported this measure. The Department of Budget and Finance provided comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2504, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair