STAND. COM. REP. NO.3066

Honolulu, Hawaii

, 2002

RE: H.B. No. 2195

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Tourism and Intergovernmental Affairs, to which was referred H.B. No. 2195 entitled:

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

begs leave to report as follows:

The purpose of this measure as received is to limit to department head salary level, the amount used for employees retirement system calculations of the average final compensation for the executive director of the Hawaii Tourism Authority, retroactive January 18, 2002.

Prior to the hearing, your Committee circulated a proposed S.D. 1, which deleted the provisions of the bill and would require Senate confirmation of the executive director, cap the executive director's salary at fifteen per cent of the three per cent administrative costs, and clarify the authority's role in the appointment of the position.

Testimony in support of the proposed measure was received from three individuals. The Chair of the Hawaii Tourism Authority (HTA) and the Hawaii Hotel Association testified in opposition. One individual submitted comments.

Your Committee finds that the choice of executive director for an agency with the fiduciary responsibilities of the HTA is critically important to the success of the organization. Your Committee has heard that despite several months of effort, the HTA may still be months away from choosing a successor to the previous executive director. Moreover, the Auditor's Report No. 02-04, Management Audit of the Hawaii Tourism Authority, February 2002, found "management problems at the Hawaii Tourism Authority are both troubling and alarming," and noted "inadequate guidance and support" from the previous executive director in its conclusions.

Your Committee has also discussed concerns regarding potential private sector contributions to the executive director's compensation package, with regards to potential conflicts of interest.

Your Committee fully appreciates the HTA's desire to attract an exemplary individual to this position, but does not believe the amendments in the proposed S.D. 1 will hamper that achievement. Your Committee has further amended the proposed language to prohibit private sector contributions to the compensation package.

As affirmed by the record of votes of the members of your Committee on Tourism and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2195, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2195, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Tourism and Intergovernmental Affairs,

____________________________

DONNA MERCADO KIM, Chair