REPORT TITLE:
Tourism


DESCRIPTION:
Allows the convention center authority to sunset on June 30,
2000.  Assigns the responsibility to market, operate, manage, and
maintain the Hawaii convention center facility to the Hawaii
tourism authority.  Transfers the balance of the Hawaii
convention center capital and operations special funds to the
tourism special fund.  Assigns the funding responsibility for the
convention center debt service and operating requirements to the
Hawaii tourism authority.  (HB1014 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1014
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TOURISM.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1. The visitor industry brings almost seven million
 
 2 visitors into the State every year.  It accounts for almost
 
 3 twenty-five per cent of the gross state product and provides over
 
 4 thirty per cent of all civilian jobs.  In light of the State's
 
 5 dependence on tourism, it is extremely important that the
 
 6 development, marketing, and research of this industry be
 
 7 coordinated in a manner consistent with the needs of the State.
 
 8      As part of its economic revitalization plan for the State,
 
 9 the 1998 legislature established a dedicated source of funding
 
10 for tourism marketing and development at a globally competitive
 
11 level, and created the Hawaii tourism authority to oversee the
 
12 fund.  The powers and duties of the Hawaii tourism authority
 
13 include the development and implementation of tourism policy for
 
14 the State, and the formulation and implementation of strategic
 
15 marketing plans for Hawaii's visitor industry.
 
16      The convention center authority was created by statute in
 
17 1988.  Its primary purpose was to review for approval the
 
18 proposed convention center development plan and to supervise the
 
19 development by a developer of all development within the
 

 
Page 2                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 convention center district pursuant to the approved convention
 
 2 center development plan, including the development of a
 
 3 convention center facility.  Construction of the convention
 
 4 center that was administered by the convention center authority,
 
 5 has been completed and the Hawaii convention center is in its
 
 6 first year of operation.
 
 7      It is the responsibility of the convention center authority
 
 8 to operate, manage, and maintain the Hawaii convention center
 
 9 facility.  Marketing services for the Hawaii convention center
 
10 however, are currently provided by the Hawaii visitors and
 
11 convention bureau with funding from the Hawaii tourism authority.
 
12 As such, the operations responsibility and the marketing
 
13 responsibility of the center are divided between two state
 
14 agencies.  In the interest of efficiency and effectiveness, these
 
15 responsibilities should fall under the purview of one agency.  As
 
16 the lead state agency for tourism, it is appropriate that these
 
17 responsibilities be assigned to the Hawaii tourism authority.
 
18      The purpose of this Act is to:
 
19      (1)  Allow the convention center authority to sunset on June
 
20           30, 2000;
 
21      (2)  Assign the responsibility to market, operate, manage,
 
22           and maintain the Hawaii convention center facility to
 
23           the Hawaii tourism authority;
 

 
Page 3                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (3)  Transfer the balance of the Hawaii convention center
 
 2           capital and operations special funds to the tourism
 
 3           special fund; and 
 
 4      (4)  Assign the funding responsibility for the convention
 
 5           center debt service and operating requirements to the
 
 6           Hawaii tourism authority. 
 
 7      SECTION 2. Chapter 201B, Hawaii Revised Statutes, is amended
 
 8 by adding six new sections to be appropriately designated and to
 
 9 read as follows:
 
10      "201B-     Transfer of funds from the Hawaii convention
 
11 center operations special fund and the Hawaii convention center
 
12 capital special fund.  The director of finance shall transfer to
 
13 the credit of the tourism special fund, on July 1, 2000, any
 
14 unexpended or unencumbered amount to be determined by the
 
15 director of finance in the Hawaii convention center operations
 
16 special fund and Hawaii convention center capital special fund
 
17 scheduled for repeal on June 30, 2000.  The director of finance
 
18 shall subsequently transfer to the credit of the tourism special
 
19 fund, the remaining unexpended or unencumbered balances remaining
 
20 in the Hawaii convention center operations special fund and
 
21 Hawaii convention center capital special fund.
 

 
 
 
 
 
Page 4                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      201B-     Hawaii convention center district development
 
 2 plan.  (a)  The authority shall review for approval the
 
 3 convention center district development plan for development
 
 4 within the convention center district.  In its review of any
 
 5 proposed convention center district development plan pursuant to
 
 6 this chapter, the authority shall apply the criteria of the
 
 7 convention center district rules and any criteria for development
 
 8 within the convention center district established by the
 
 9 legislature.
 
10      (b)  The authority may enter into cooperative agreements
 
11 with qualified persons or public agencies, where the powers,
 
12 services, and capabilities of such persons or agencies are deemed
 
13 necessary and appropriate for review by the board of the
 
14 development of the convention center district development plan.
 
15      (c)  Whenever possible, the convention center district
 
16 development plan shall be consistent with federal, state, and
 
17 county plans.  Consideration shall be given to state goals and
 
18 policies, adopted state plan or land use guidance policies,
 
19 county general plans, development plans, and ordinances.
 
20      201B-     Convention center district rules.  The authority
 
21 shall establish rules for the development within the convention
 
22 center district under chapter 91 on health, safety, building,
 

 
 
 
Page 5                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 planning, zoning, land use, land development, and flood plain
 
 2 management, including mitigation and permitting, which, upon
 
 3 final approval by the authority of a convention center district
 
 4 development plan, shall supersede all other inconsistent
 
 5 ordinances and rules relating to health, safety, building,
 
 6 planning, zoning, land use, land development, and flood plain
 
 7 management, including mitigation and permitting, and provision of
 
 8 access and utilities thereto.  The convention center district
 
 9 development plan approved by the authority shall be made a part
 
10 of, and shall have the same force and effect as, the rules
 
11 aforesaid.  Rules adopted under this section shall follow
 
12 existing law, rules, ordinances, and regulations as closely as is
 
13 consistent with standards meeting minimum requirements of good
 
14 design, pleasant amenities, health, safety, and coordinated
 
15 development, and accomplishment of the purposes of this chapter.  
 
16      For purposes of chapters 501, 502, and 514A, the authority
 
17 may certify maps and plans of lands and real property interests
 
18 within the convention center district as having complied with
 
19 applicable laws and ordinances relating to consolidation,
 
20 subdivision of lands, and condominium property regimes, and such
 
21 maps and plans shall be accepted for registration or recordation
 
22 by the land court and registrar.
 

 
 
 
Page 6                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      201B-     Agreement with developer.  (a) The authority may
 
 2 enter into an agreement with a developer for the construction,
 
 3 reconstruction, rehabilitation, improvement, alteration or repair
 
 4 of the convention center and all other improvements.  The
 
 5 agreement shall include provision for access to, or ownership of,
 
 6 adequate parking facilities in favor of the authority within the
 
 7 convention center district to accommodate the activities of the
 
 8 Hawaii convention center facility.  The development and
 
 9 construction of the improvements within the convention center
 
10 district shall conform with the convention center development
 
11 plan approved by the authority.
 
12      (b)  As a condition and consideration of the right to
 
13 develop the real property within the convention center district
 
14 under the agreement, pursuant to this chapter, the developer
 
15 shall negotiate with the State for the transfer of a marketable
 
16 real property interest in the convention center facility to the
 
17 State with warranty of title free and clear of all encumbrances,
 
18 subject to declaration of condominium property regime, if any,
 
19 and to such encumbrances and easements as shall be acceptable to
 
20 the State.
 
21      (c)  As a further condition and consideration of the right
 
22 to develop the real property within the convention center
 

 
 
 
Page 7                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 district under the agreement and pursuant to this chapter, the
 
 2 developer shall pay a reasonable sum determined by the authority
 
 3 as contribution for the payment of costs relating to:
 
 4      (1)  The temporary or permanent relocation of existing
 
 5           licensees and lessees, if any, who are displaced
 
 6           because of the development within the convention center
 
 7           district pursuant to the convention center district
 
 8           development plan by the developer; or
 
 9      (2)  Settlement payments in lieu of payments provided under
 
10           paragraph (1) to existing licensees and lessees, if
 
11           any, who are displaced by the developer because of the
 
12           development within the convention center district
 
13           pursuant to the convention center district development
 
14           plan; provided that each displaced licensee or lessee
 
15           shall have the option to select either relocation or a
 
16           settlement payment.
 
17      Upon the approval by the authority of the relocation plan
 
18 which shall be prepared and submitted by the developer to the
 
19 authority, the developer shall deliver to the authority for
 
20 deposit into the tourism special fund, the sum determined by the
 
21 authority in the form of a certified check, an irrevocable letter
 
22 of credit, or surety bond.  The sum determined by the authority
 

 
 
 
Page 8                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 shall be used for the implementation of the relocation plan;
 
 2 provided that the sum and all interest accrued thereon shall be
 
 3 refunded to the developer in the event this chapter expires and
 
 4 becomes void.
 
 5      The relocation plan shall include an agreement by the
 
 6 developer to give every displaced licensee or lessee who does not
 
 7 elect to receive a settlement payment under paragraph (2) an
 
 8 unassignable right of first refusal of any license or lease of
 
 9 space within the convention center district developed and offered
 
10 for those activities similar in size and nature to the business
 
11 conducted by the licensee or lessee at the time of displacement,
 
12 unless this right is waived by any licensee or lessee.
 
13      The authority may establish a task force to assist in the
 
14 implementation of the relocation plan.  The task force shall
 
15 include persons representing agencies, organizations, government,
 
16 and private interests.
 
17      201B-     Use of public lands.  Any provision of chapter
 
18 171 to the contrary notwithstanding, the governor may set aside,
 
19 transfer, convey, or lease public lands wherever situated and
 
20 whether or not set aside to any department or agency of the State
 
21 or any political subdivision of the State, to the authority for
 
22 its use.
 

 
 
 
Page 9                                                     1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      201B-     Public projects.  Any project or activity of any
 
 2 county or agency of the State in the convention center district
 
 3 shall be constructed, renovated, or improved in consultation with
 
 4 the authority."
 
 5      SECTION 3.  Section 201B-1, Hawaii Revised Statutes, is
 
 6 amended by adding seven new definitions to be appropriately
 
 7 inserted and to read as follows:
 
 8      ""Convention center facility" or "Hawaii convention center"
 
 9 means any combination of land, buildings, and improvements
 
10 thereon, suitable for use as a convention center; any other
 
11 structure or facility required or useful for the operation of a
 
12 convention center facility, including but not limited to
 
13 commercial, office, community service, parking, garage, and other
 
14 supporting service structures; and all necessary, useful, and
 
15 related equipment, furnishings, and appurtenances.
 
16      "Developer" means any person, partnership, cooperative,
 
17 firm, nonprofit or for-profit corporation, or public agency
 
18 possessing the competence, expertise, experience, and resources,
 
19 including financial, personal, and tangible resources, required
 
20 to effectuate, directly or through other developers, the
 
21 development of a convention center, including planning, design,
 
22 and construction.
 

 
 
 
Page 10                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      "Local governing body" means the county council of the city
 
 2 and county of Honolulu.
 
 3      "Public agency" means any office, department, board,
 
 4 commission, bureau, division, public corporation agency, or
 
 5 instrumentality of the federal, state, or county government.
 
 6      "Public facilities" include streets, utility and service
 
 7 corridors, and utility lines where applicable, sufficient to
 
 8 adequately service developable improvements in the district,
 
 9 sites for schools, parks, parking garage, sidewalks, pedestrian
 
10 ways, and other community facilities. "Public facilities" shall
 
11 also include public highways, as defined by statute, storm
 
12 drainage systems, water systems, street lighting systems, off-
 
13 street parking facilities, and sanitary sewerage systems.
 
14      "Qualified person" means any individual, partnership,
 
15 corporation, public agency, or any combination or association of
 
16 the foregoing, possessing the competence, expertise, experience,
 
17 and resources, including financial, personnel, and tangible
 
18 resources, required for the purposes of a project and such other
 
19 qualifications as may be deemed desirable by the authority in
 
20 administering this chapter and which enters into a project
 
21 agreement with the authority.
 

 
 
 
 
 
Page 11                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      "Real property" means lands, structures, and interests in
 
 2 land, including lands under water and riparian rights, space
 
 3 rights, and air rights and any and all other things and rights
 
 4 usually included within the term.   "Real property" also means
 
 5 any and all interests in such property less than full title, such
 
 6 as easements, incorporeal hereditaments and every estate,
 
 7 interest, or right, legal or equitable, including terms for years
 
 8 and liens thereon by way of judgments, mortgages, or otherwise."
 
 9      SECTION 4.  Section 201B-2, Hawaii Revised Statutes, is
 
10 amended as follows:
 
11      1.  By amending subsection (b) to read:
 
12      "(b)  The authority shall be headed by a board of directors
 
13 which consists of [ten] twelve public voting members, one public,
 
14 nonvoting member; one ex officio voting member, and one ex
 
15 officio nonvoting member; provided that:
 
16      (1)  [Ten] Twelve public, voting members shall be appointed
 
17           by the governor as provided in section 26-34, except as
 
18           otherwise provided by law;
 
19      (2)  The [ten] twelve public, voting members shall be
 
20           composed of one representative each from the city and
 
21           county of Honolulu and the counties of Hawaii, Kauai,
 
22           and Maui; the remaining public members shall be
 
23           appointed at-large;
 

 
Page 12                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (3)  Of the [ten] twelve public, voting members, two shall
 
 2           be appointed by the governor from a list of three names
 
 3           nominated by the president of the senate, and two shall
 
 4           be appointed by the governor from a list of three names
 
 5           nominated by the speaker of the house of
 
 6           representatives[.];
 
 7      (4)  At least six of the [ten] twelve voting members shall
 
 8           have knowledge, experience, and expertise in the area
 
 9           of visitor industry management, marketing and
 
10           promotion[;]
 
11      (5)  At least two of the remaining six voting members shall
 
12           have knowledge, interest, and proven expertise in, but
 
13           not limited to one or more of the following fields:
 
14           finance, law, architecture, commerce and trade,
 
15           corporate management, marketing, economics, and visitor
 
16           industry;
 
17     [(5)] (6)  The governor shall make appointments to ensure the
 
18           fulfillment of all requirements;
 
19     [(6)] (7)  The director of business, economic development and
 
20           tourism, or a designated representative, shall be an ex
 
21           officio voting member;
 

 
 
 
 
 
Page 13                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1     [(7)] (8)  The director of transportation or a designated
 
 2           representative, shall be an ex officio nonvoting
 
 3           member; and
 
 4     [(8)] (9)  The governor shall appoint a public, nonvoting
 
 5           member."
 
 6      2.  By amending subsection (e) to read:
 
 7      "(e)  [Six] Seven voting members shall constitute a quorum,
 
 8 whose affirmative vote shall be necessary for all actions by the
 
 9 authority.  The members shall serve without compensation, but
 
10 shall be reimbursed for expenses, including traveling expenses
 
11 necessary for the performance of their duties."
 
12      SECTION 5. Section 201B-3, Hawaii Revised Statutes, is
 
13 amended as follows:
 
14      "201B-3 Powers.  Except as otherwise limited by this
 
15 chapter, the board may:
 
16      (1)  Sue and be sued;
 
17      (2)  Have a seal and alter the same at pleasure;
 
18      (3)  Make and execute contracts and all other instruments
 
19           necessary or convenient for the exercise of its powers
 
20           and functions under this chapter, provided that the
 
21           authority may enter into contracts and agreements for a
 
22           period of up to five years;
 

 
 
 
Page 14                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (4)  Make and alter bylaws for its organization and internal
 
 2           management;
 
 3      (5)  Adopt rules in accordance with chapter 91 with respect
 
 4           to its projects, operations, properties, and
 
 5           facilities;
 
 6      (6)  Through its executive director represent the authority
 
 7           in communications with the governor and with the
 
 8           legislature;
 
 9      (7)  Through its executive director appoint officers,
 
10           agents, and employees, prescribe their duties and
 
11           qualifications, and fix their salaries, without regard
 
12           to chapters 76, 77 and 78;
 
13      (8)  Through its executive director purchase supplies,
 
14           equipment, or furniture;
 
15      (9)  Through its executive director allocate the space or
 
16           spaces which are to be occupied by the authority and
 
17           appropriate staff;
 
18     (10)  Engage the services of qualified persons to implement
 
19           the state's tourism marketing plan or portions thereof
 
20           as determined by the board;
 
21     (11)  Engage the services of consultants on a contractual
 
22           basis for rendering professional and technical
 
23           assistance and advice;
 

 
Page 15                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1     (12)  Procure insurance against any loss in connection with
 
 2           its property and other assets and operations in such
 
 3           amounts and from such insurers as it deems desirable;
 
 4     (13)  Contract for and accept gifts or grants in any form
 
 5           from any public agency, or any other source;
 
 6     (14)  Create a vision and develop a long range plan for
 
 7           tourism in Hawaii, including product development,
 
 8           infrastructure, and diversification issues;
 
 9     (15)  Develop, coordinate, and implement state policies and
 
10           directions for tourism and related activities taking
 
11           into account the economic, social, and physical impacts
 
12           of tourism on the State;
 
13     (16)  Develop and implement the state tourism strategic
 
14           marketing plan, which shall be updated every three
 
15           years, to promote and market the State as a desirable
 
16           visitor destination;
 
17     (17)  Have a permanent, strong focus on marketing and
 
18           promotion;
 
19     (18)  Conduct market development-related research as
 
20           necessary;
 
21     (19)  Coordinate all agencies and advise the private sector
 
22           in the development of tourism-related activities and
 
23           resources;
 

 
Page 16                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1     (20)  Work to eliminate or reduce barriers to travel in order
 
 2           to provide a positive and competitive business
 
 3           environment, including coordinating with the department
 
 4           of transportation on issues affecting airlines and air
 
 5           route development;
 
 6     (21)  Market and promote sports-related activities and
 
 7           events;
 
 8     (22)  Coordinate the development of new products with the
 
 9           public and private sectors, including the development
 
10           of sports, culture, health, education, business, and
 
11           eco-tourism;
 
12     (23)  Establish a public information and educational program
 
13           to inform the public of tourism and tourism-related
 
14           problems;
 
15     (24)  Encourage the development of tourism educational,
 
16           training, and career counseling programs;
 
17     (25)  Establish a program to monitor, investigate, and
 
18           respond to complaints about problems resulting directly
 
19           or indirectly from the tourism industry and taking
 
20           appropriate action as necessary; [and]
 
21     (26)  [Do any and all things necessary to carry out its
 
22           purposes and exercise the powers given and granted in
 

 
 
 
Page 17                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           this chapter.] Inspect and approve development within
 
 2           the convention center district for compliance with
 
 3           convention center development plans and rules;
 
 4     (27)  Enter into contracts for the professional marketing,
 
 5           management, operation, and maintenance of the
 
 6           convention center facility;
 
 7     (28)  Cause a developer to prepare plans, specifications, and
 
 8           designs for the construction, reconstruction,
 
 9           rehabilitation, improvement, alteration or repair of
 
10           any project, and from time to time, to modify such
 
11           plans, specifications, or designs; provided that the
 
12           plans, specifications, or designs shall be subject to
 
13           review and approval by the authority;
 
14     (29)  Procure insurance against any loss and any liability in
 
15           connection with the Hawaii convention center and other
 
16           related assets and operations in such amounts and from
 
17           such insurers as it deems desirable;
 
18     (30)  Upon the request of the authority and the approval of
 
19           the governor, condemn any real property interests as
 
20           the authority deems necessary for the development of a
 
21           convention center pursuant to chapter 101; provided
 
22           that the valuation of any such property acquired
 

 
 
 
Page 18                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           pursuant to the exercise of the authority's power under
 
 2           this subsection shall be done without regard to any
 
 3           increase or decrease in the value of the property
 
 4           resulting from the application of this chapter.
 
 5           Property acquired by condemnation shall not be subject
 
 6           to chapter 171;
 
 7     (31)  Negotiate with the developer for contribution by the
 
 8           developer to defray costs relating to the relocation of
 
 9           persons displaced because of the development;
 
10     (32)  On behalf of the State, accept the authority to market,
 
11           manage, operate, and maintain the Hawaii convention
 
12           center facility;
 
13     (33)  The authority, with the approval of the governor, may
 
14           issue from time to time revenue bonds (including
 
15           refinancing bonds for the purpose of paying, retiring,
 
16           or providing for the retirement of bonds previously
 
17           issued by the convention center authority) in amounts
 
18           not exceeding the total amount of bonds authorized to
 
19           be issued by the legislature for any of the authority's
 
20           purposes.  All revenue bonds shall be issued pursuant
 
21           to part III of chapter 39, except as provided in this
 
22           chapter.  All revenue bonds shall be issued in the name
 

 
 
 
Page 19                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           of the authority and not in the name of the State.  The
 
 2           final maturity date of the revenue bonds may be any
 
 3           date not exceeding thirty years from the date of
 
 4           issuance;
 
 5     (34)  Pledge or assign all or any part of the receipts and
 
 6           revenues of the authority;
 
 7     (35)  Set and collect rents, fees, charges, or other payments
 
 8           for the lease, use, occupancy, or disposition of the
 
 9           Hawaii convention center facility acquired,
 
10           constructed, or reconstructed by the authority pursuant
 
11           to this chapter;
 
12     (36)  Acquire, lease as lessee or lessor, own, rent, hold,
 
13           and dispose of real and personal property in the
 
14           exercise of its powers and the performance of its
 
15           duties under this chapter;
 
16     (37)  Acquire by purchase, lease, or otherwise, and develop,
 
17           construct, operate, own, manage, repair, reconstruct,
 
18           enlarge, or otherwise effectuate, either directly or
 
19           through developers, a convention center;
 
20     (38)  Reimburse the state general fund for debt service on
 
21           general obligation bonds or reimbursable general
 
22           obligation bonds issued by the State for purposes of
 
23           the Hawaii convention center;
 

 
Page 20                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1     (39)  By itself, or in combination or association with
 
 2           qualified persons, by any form of request for
 
 3           proposals, as determined by the board, any law to the
 
 4           contrary notwithstanding, solicit, accept, review,
 
 5           reject, modify, or approve proposals, and thereafter
 
 6           enter into agreements, for the initiation, undertaking,
 
 7           supervision, and regulation of the marketing,
 
 8           operation, and maintenance of the Hawaii convention
 
 9           center, and any related development; and
 
10     (40)  Do any and all things necessary to carry out its
 
11           purposes and exercise the powers given and granted in
 
12           this chapter."
 
13      SECTION 6.  Section 201B-7, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "201B-7  Tourism-related activities.  (a)  The authority
 
16 may enter into contracts and agreements that include the
 
17 following:
 
18      (1)  Tourism promotion, marketing, and development;
 
19      (2)  Market development-related research;
 
20      (3)  Product development and diversification issues;
 
21      (4)  Promotion, development, and coordination of sports-
 
22           related activities and events;
 

 
 
 
Page 21                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (5)  Reduction of barriers to travel;
 
 2      (6)  Tourism public information and educational programs;
 
 3      (7)  Programs to monitor and investigate complaints about
 
 4           the problems resulting from the tourism industry in the
 
 5           State; [and]
 
 6      (8)  [Any and all other activities necessary to carry out
 
 7           the intent of this chapter;] Marketing, management,
 
 8           operation, and maintenance of the Hawaii convention
 
 9           center; and
 
10      (9)  Any and all other activities necessary to carry out the
 
11           intent of this chapter;
 
12 provided that for the purposes of continuity, the Hawaii Visitors
 
13 and Convention Bureau shall be the designated agency to conduct
 
14 the marketing and promotion of the State until the end of fiscal
 
15 year 1998-1999 or until a date specified by the board.
 
16      (b)  The authority staff shall be responsible for monitoring
 
17 and facilitating any and all functions developed in accordance
 
18 with subsection (a)."
 
19      SECTION 7.  Section 201B-11, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "201B-11 Tourism [Special Fund.] special fund.  (a) There
 
22 is established in the state treasury the tourism special fund,
 
23 into which shall be deposited:
 

 
Page 22                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (1)  A portion of the revenues from any transient
 
 2           accommodations tax as provided by section 237D-6.5;
 
 3           [and]
 
 4      (2)  Appropriations by the legislature to the tourism
 
 5           special fund; [and]
 
 6      (3)  Gifts, grants, and other funds accepted by the
 
 7           authority; and
 
 8      (4)  All revenues derived from the operations of the Hawaii
 
 9           convention center;
 
10      (5)  All or a portion of all revenues derived from the
 
11           operation of parking and garage facilities and other
 
12           concessions at the Hawaii convention center; and
 
13      (6)  All proceeds from revenue bonds issued by the
 
14           authority.
 
15      (b)  Moneys in the tourism special fund may be placed in
 
16 interest-bearing accounts or otherwise invested by the authority
 
17 until such time as the moneys may be needed.  All interest
 
18 accruing from the investment of these moneys shall be credited to
 
19 the tourism special fund.
 
20      (c)  Moneys in the tourism special fund shall be used by the
 
21 authority for the purposes of this chapter[,]; provided that not
 
22 more than three per cent of this amount shall be used for
 

 
 
 
Page 23                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 administrative expenses; provided further that of this amount the
 
 2 sum of $15,000 shall be made available for a protocol fund to be
 
 3 expended at the discretion of the executive director; provided
 
 4 further that moneys in the tourism special fund shall be used for
 
 5 the salaries and expenses of the office of tourism established in
 
 6 section 201-92[.], provided further that moneys in the tourism
 
 7 special fund shall be used to fund the debt service and operating
 
 8 requirements of the Hawaii convention center.
 
 9      (c)  In addition to the powers of the authority specified in
 
10 section 201B-3, the authority may:
 
11      (1)  Adopt rules in accordance with chapter 91, to define
 
12           the term "revenues or moneys derived from the
 
13           operations or use of the Hawaii convention center"; and
 
14      (2)  Do any and all things deemed necessary to administer
 
15           the tourism special fund."
 
16      SECTION 8.  Section 237D-6.5, Hawaii Revised Statues is
 
17 amended by amending subsection (b) as follows:
 
18      "(b)  For the fiscal year beginning July 1, 1994, and for
 
19 each fiscal year thereafter, until December 31, 1998, revenues
 
20 collected under this chapter shall be distributed as follows:
 
21      (1)  One-sixth of the revenues collected under this chapter
 
22           shall be deposited into the Hawaii convention center
 

 
 
 
Page 24                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           capital special fund established under section
 
 2           206X-10.5;
 
 3      (2)  Of the remaining revenues, five per cent shall be
 
 4           retained by the State; and
 
 5      (3)  Of the remainder, Kauai county shall receive 14.5 per
 
 6           cent; Hawaii county shall receive 18.6 per cent[;],
 
 7           city and county of Honolulu shall receive 44.1 per
 
 8           cent[;], and Maui county shall receive 22.8 per cent.
 
 9      Beginning on January 1, 1999[,] and ending June 30, 2000,
 
10      revenues collected under this chapter shall be distributed
 
11      as follows:
 
12      (1)  17.3 per cent of the revenues collected under this
 
13           chapter shall be deposited into the Hawaii convention
 
14           center capital special fund established under section
 
15           206X-10.5;
 
16      (2)  37.9 per cent of the revenues collected under this
 
17           chapter shall be deposited into the tourism special
 
18           fund established under section 201B-11; and
 
19      (3)  44.8 per cent of the revenues collected under this
 
20           chapter shall be transferred as follows[;]: Kauai
 
21           county shall receive 14.5 per cent; Hawaii county shall
 
22           receive 18.6 per cent, city and county of Honolulu
 

 
 
 
Page 25                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           shall receive 44.1 per cent, and Maui [County] county
 
 2           shall receive 22.8 per cent.
 
 3      Beginning July 1, 2000, revenues collected under this
 
 4      chapter shall be distributed as follows:
 
 5      (1)  44.8 per cent of the revenues collected under this
 
 6           chapter shall be transferred as follows:  Kauai county
 
 7           shall receive 14.5 per cent, Hawaii county shall
 
 8           receive 18.6 per cent, city and county of Honolulu
 
 9           shall receive 44.1 per cent, and Maui county shall
 
10           receive 22.8 per cent; and
 
11      (2)  55.2 per cent shall be deposited into the tourism
 
12           special fund established under section 201B-11."
 
13      SECTION 9.  Chapter 206X, Hawaii Revised Statutes, is
 
14 repealed.
 
15      SECTION 10.  Section 3 of Act 96, Session Laws of Hawaii
 
16 1988, as amended by Act 159, Session Laws of Hawaii 1992, as
 
17 amended by Act 241, Session Laws of Hawaii 1993, as amended by
 
18 Act 75, Session Laws of Hawaii, and Act 156, Session Laws of
 
19 Hawaii 1998, is amended by amending section to read as follows:
 
20      "SECTION 3.  This Act shall automatically expire on June 30,
 
21 [1999.] 2000.
 

 
 
 
 
 
Page 26                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      In the event any judicial or quasi-judicial proceeding is
 
 2 commenced regarding the validity of this Act or any section of
 
 3 this Act, or any action of the authority, the running of the
 
 4 period shall be suspended until a final nonappealable
 
 5 determination is made in the judicial or quasi-judicial
 
 6 proceeding."
 
 7      SECTION 11.  (a)  All employees of the Hawaii convention
 
 8 center authority are transferred to the Hawaii tourism authority
 
 9 and shall be exempt from chapters 76 and 77.
 
10      (b)  All rules, policies, procedures, guidelines, and other
 
11 material adopted or developed by the convention center authority
 
12 to implement provisions of the Hawaii Revised Statutes which are
 
13 reenacted or made applicable to the Hawaii tourism authority by
 
14 this Act, shall remain in full force and effect until amended or
 
15 repealed by the board pursuant to chapter 91.  In the interim,
 
16 every reference to the convention center authority in those
 
17 rules, policies, procedure, guidelines, and other material is
 
18 amended to refer to the Hawaii tourism authority.
 
19      (c)  All deeds, leases, contracts, loans, agreements,
 
20 permits, or other documents executed or entered into by or on
 
21 behalf of the convention center authority pursuant to the
 
22 provisions of the Hawaii Revised Statutes, which are reenacted or
 

 
 
 
Page 27                                                    1014
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 made applicable to the authority by this Act, shall remain in
 
 2 full force and effect.  Effective July 1, 2000, every reference
 
 3 to the convention center authority therein shall be construed as
 
 4 a reference to the Hawaii tourism authority.
 
 5      (d)  All records, equipment, machines, files, supplies,
 
 6 contracts, books, papers, documents, maps, and other personal
 
 7 property heretofore made, used, acquired, or held by the
 
 8 convention center authority relating to the functions transferred
 
 9 to the Hawaii authority shall be transferred with the functions
 
10 to which they relate.  All records, equipment, machines, files,
 
11 supplies, contracts, books, papers, documents, maps, and other
 
12 personal property heretofore made, used, acquired, or held by the
 
13 convention center authority related to basic data and visitor
 
14 research shall be transferred to the research and economic
 
15 analysis division of the department of business, economic
 
16 development, and tourism.
 
17      SECTION 12.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 13.  This Act shall take effect on July 1, 2000;
 
20 provided that section 10 shall take effect on June 29, 1999.