CONFERENCE COMMITTEE REP. 11-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2061

H.D. 2

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2061, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to:

(1) Remove the cap on deposits into the convention center enterprise special fund;

(2) Change the percentage of transient accommodations tax (TAT) revenues to be deposited into the Tourism Special Fund (TSF);

(3) Establishes an Aloha Aina Patrol in each county, the operational expenses of which are to be funded by $1,000,000 from the TSF and up to $1,000,000 from the Hawaii Tourism Authority;

(4) Raises the cap on TAT revenue deposits into the TSF to $63,292,000 in any fiscal year; and

(5) Changes the percentage of TAT revenues to be deposited into the TAT trust fund.

Your Committee finds that establishment of an Aloha Aina Patrol will address the crime problem in areas of high tourist traffic while spreading the message of the aloha spirit, by:

(1) Staffing the patrols with police service employees and cadets in aloha attire, who will serve as ambassadors of aloha; and

(2) Creating additional security patrols geared toward beaches and parks where there have been too many incidents of crime against visitors and residents.

Your Committee notes that the current projections of the Council on Revenues indicate the total amount of TAT revenues collected by the State will increase approximately $8,000,000 over previous projections. Therefore, this bill redistributes the percentage of TAT revenues being given to each county to fund the Aloha Aina Patrol. With the anticipated increase in TAT revenues, the counties will still realize a net increase in TAT revenues, while reaping the benefits of the increased police support.

Your Committee has amended this bill by:

(1) Restoring the $31,000,000 cap on TAT revenues to be deposited into the convention center enterprise special fund, with the excess to be deposited into the general fund;

(2) Restoring the 32.6 percent of TAT revenues to be deposited into the TSF;

(3) Changing the funding method for the Aloha Aina Patrol by:

(a) Restoring the $62,292,000 cap on the TSF; and

(b) Changing the percentage of TAT revenues going to each county to allow 1.3 percent of 44.8 percent of TAT revenues to support the Aloha Aina Patrol;

(4) Restoring the TAT trust fund, and the 5.3 percent of TAT

revenues to be deposited into it;

(5) Deleting the section appropriating funds from the TSF for

the Aloha Aina Patrol; and

(6) Changing the effective date to July 1, 2004.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2061, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2061, H.D. 2, S.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

DONNA MERCADO KIM, Chair

____________________________

JERRY CHANG, Co-Chair

____________________________

DWIGHT Y. TAKAMINE, Co-Chair