STAND. COM. REP. NO. 3

                                Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 23
                                     




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

   Your Committee on Economic Development, to which was
referred S.B. No. 23 entitled: 

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

begs leave to report as follows:
   
   The purpose of this measure is to convert the two non-voting
members of the Hawaii Tourism Authority (HTA) to voting members.

   Your Committee received testimony in support of this measure
from the Hawaii Tourism Authority.  The Hawaii Hotel Association
and the Maui Hotel Association submitted testimony in opposition.

   Your Committee finds the HTA was established by the 1998
Legislature, and the transient accommodations tax was raised by
one and one-quarter percent to fund this organization.  Tourism
accounts for nearly twenty-five percent of the gross state
product, with nearly 7,000,000 visitors every year, and provides
thirty percent of the civilian jobs in the State.

   Your Committee further finds that tourism's enormous impact
on the State's economy, as well as government support of the
industry, requires adequate voting representation by all members
of the HTA board.  Current representation from the non-voting
members has proven significant in helping to guide the direction
of the board, but without voting powers these two members are
limited in their participation and decision making.  This measure
will ensure that the contributions of all members of the board

 
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                                STAND. COM. REP. NO. 3
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are weighed and considered in guiding the HTA in its efforts to
promote Hawaii's tourism industry.

   As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 23 and recommends that it pass Second Reading and be
referred to the Committee on Ways and Means.

                                Respectfully submitted on
                                behalf of the members of the
                                Committee on Economic
                                Development,



                                ______________________________
                                LORRAINE R. INOUYE, Chair

 
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