STAND. COM. REP. NO.1000

Honolulu, Hawaii

, 2001

RE: S.B. No. 1029

S.D. 3

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Tourism and Culture and Water and Land Use, to which was referred S.B. No. 1029, S.D. 3, entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

beg leave to report as follows:

The purpose of this bill is to:

(1) Assign the responsibility to market, operate, manage, and maintain the Hawaii Convention Center Facility to the Hawaii Tourism Authority (HTA) and establish a Hawaii Convention Center Enterprise Special Fund (Enterprise Special Fund);

(2) Change the composition of the HTA board of directors for a total of 17 members;

(3) Distribute $1,000,000 of Transient Accommodations Tax revenues collected to be deposited into the State Parks Special Fund and $60,000,000 to be deposited into the Tourism Special Fund, with the remaining 64 per cent allocated to the counties, 24 per cent allocated to the Enterprise Special Fund, and the balance allocated to the general fund; and

(4) Require that HTA provide notice of contracts approved for $25,000 to the Speaker of the House of Representatives and the President of the Senate.

The Department of Business, Economic Development, and Tourism, Department of Land and Natural Resources, HTA, Hawaii Hotel Association, Outrigger Enterprises, Inc., Trust for Public Land, Sierra Club, Hawaii Chapter, Waikiki Improvement Association, Retail Merchants of Hawaii, Hawaii Attractions Association, and one concerned citizen testified in support of the intent of this bill.

The Hawaii Hotel Association and Maui Hotel Association opposed this bill. The Tax Foundation of Hawaii submitted comments on this bill.

Your Committees have amended this bill by deleting its contents and inserting the substantive provisions of H.B. No. 269, H.D. 1, a similar bill that passed Third Reading earlier this session. As amended this bill:

(1) Establishes the Convention Center Facility Reserve Special Fund;

(2) Changes the composition of HTA board of directors for a total of 14 members;

(3) Requires HTA to support the efforts of other state and county departments or agencies to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors;

(4) Distributes 17.3 per cent of TAT revenues to be deposited into the Convention Center Facility Reserve Special Fund;

(5) Specifies that if the amount of TAT revenues deposited into the Tourism Special Fund exceeds the amount appropriated to HTA and DBEDT's Visitor Research Program for fiscal year 2001-2002 and fiscal year 2002-2003, then all revenues collected in excess of that amount is to expended by HTA with 50 percent to expand, promote, and diversify Hawaii business tourism and 50 percent to invest in Hawaii's natural environment;

(6) Appropriates an unspecified amount for the Tourism Special Fund; and

(7) Appropriates out of the Enterprise Special Fund, $42,800,000 for fiscal year 2001-2002 and $42,400,000 for fiscal year 2002-2003; provided that $2,000,000 for fiscal year 2001-2002 and $2,000,000 for fiscal year 2002-2003 shall be deposited into the Convention Center Facility Reserve Special Fund to pay for any future major repair, maintenance, and improvement of the convention center facility.

As affirmed by the records of votes of the members of your Committees on Tourism and Culture and Water and Land Use that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1029, S.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1029, S.D. 3, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Tourism and Culture and Water and Land Use,

____________________________

EZRA KANOHO, Chair

____________________________

JERRY CHANG, Chair