STAND. COM. REP. NO. 777

Honolulu, Hawaii

RE: S.B. No. 1023

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1023, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to allocate fixed amounts of revenue collected through the transient accommodations tax to provide funding for the Bernice Pauahi Bishop Museum and Iolani Palace.

Your Committee received written comments in support of this measure from the Oahu Economic Development Board, Friends of Iolani Palace, Bishop Museum, Council for Native Hawaiian Advancement, Kamehameha Schools Bishop Estate, Institute for Native Pacific Education and Culture, Hawaii Appleseed Center for Law and Economic Justice, Aha Punana Leo, Hawaii Museums Association, Hui Hawaii o Utah Hawaiian Civic Club, and five individuals.

Your Committee received written comments on this measure from the Department of Land and Natural Resources and Tax Foundation of Hawaii.

Your Committee finds that the Bishop Museum holds millions of objects and artifacts of Native Hawaiian, Pacific Island, and Hawaii immigrant life; offers scientific, cultural, educational programs to thousands of schoolchildren each year; and supports economic development and tourism. Your Committee also finds that Iolani Palace serves a poignant role representing the Hawaiian monarchy, is the only royal palace in the United States, and is important both as a historic building and as a tourism venue. Your Committee also recognizes that the coronavirus disease 2019 (COVID-19) pandemic has resulted in a lack of visitors and events at both the Bishop Museum and Iolani Palace, which has led to both sites losing substantial revenue. Accordingly, your Committee believes that allocating a portion of transient accommodations tax revenues to the Bishop Museum and Iolani Palace would help support their continued operations and preserve their roles in Hawaii's culture.

Your Committee has amended this measure by:

(1) Deleting references to specific paragraphs in cross references to section 237D-6.5(b), Hawaii Revised Statutes;

(2) Correcting a typographical error in a cross reference to section 237D-6.5(b), Hawaii Revised Statutes; and

(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1023, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1023, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair