STAND. COM. REP. NO. 3650

Honolulu, Hawaii

RE: H.B. No. 1622

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred H.B. No. 1622, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the allocation of transient accommodations tax to fund the development, in addition to the operation, of a Hawaiian center and a museum of Hawaiian music and dance.

Your Committee received testimony in support of this measure from the Hawaii Tourism Authority. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that the perpetuation of Hawaiian culture and dance is an important initiative that is necessary to strengthen Hawaiian history and culture, thereby making authentic experiences accessible to residents and visitors of the State. Existing law allocates a portion of the revenues of the transient accommodations tax for the operation of a Hawaiian center and the museum of Hawaiian music and dance. However, your Committee finds that existing law does not authorize the funds to be used for the development of a Hawaiian center and museum of Hawaiian music and dance, thereby restricting the use of funds only to the day-to-day activities of a center. This measure will clarify that the revenues received from the transient accommodations tax may be used for both the operation and development of a Hawaiian center and museum of Hawaiian music and dance.

Your Committee also finds that Act 104, Session Laws of Hawaii 2017, established the temporary commission on the Thirteenth Festival of Pacific Arts, which planned to host the festival here in Hawaii in June 2020. Visitors from around the world were expected to share and exchange their cultures. Your Committee notes that due to the outbreak of COVID-19, the festival has been postponed to June 2021 due to health concerns. Your Committee finds great importance in holding this historic event in Hawaii and believes it necessary to extend the temporary commission beyond the original sunset date established in Act 104, Session Laws of Hawaii 2017.

Accordingly, your Committee has amended this measure by:

(1) Extending the date on which the temporary commission on the Thirteenth Festival of Arts shall cease to exist to August 31, 2022; 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 Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1622, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1622, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

GLENN WAKAI, Chair