STAND. COM. REP. NO. 2420

Honolulu, Hawaii

RE: S.B. No. 2504

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. 2504 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to prohibit the Hawaii Tourism Authority from using monies in the tourism special fund dedicated for administrative expenses to market Hawaii as a tourism destination.

Your Committee received comments on this measure from the Hawaii Tourism Authority.

Your Committee finds that the law establishing allowable uses of the tourism special fund for administrative expenses needs to more clearly define what constitutes administrative expenses. Your Committee believes that marketing Hawaii as a tourist destination is what the Hawaii Tourism Authority is required to do in order to maintain the brand of Hawaii and to flourish the State's economy but that this function falls outside of the scope of customary administrative functions. This measure explicitly states that marketing Hawaii as a tourist destination does not constitute an administrative expense, thereby clarifying allowable uses of the tourism special fund.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2050, to encourage further discussion;

(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. 2504, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2504, 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