REPORT TITLE:
Tourism


DESCRIPTION:
Sunsets the Hawaii Convention Sunset Authority on an unspecified
date; assigns 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 HD10)

 
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                                                        1014
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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, annd 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
 

 
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 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, which was administered by the convention center
 
 5 authority, has been completed and the Hawaii convention center is
 
 6 in its 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
 
20                          ;
 
21      (2)  Assign the responsibility to market, operate, manage,
 
22           and maintain the Hawaii convention center facility to
 
23           the Hawaii tourism authority;
 

 
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 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 
 
 8                              PART I
 
 9      SECTION 2. Chapter 201B, Hawaii Revised Statutes, is amended
 
10 by adding ten new sections to be appropriately designated and to
 
11 read as follows:
 
12      "201B-   Transfer of funds from Hawaii convention center
 
13 operations special fund and Hawaii convention center capital
 
14 special fund.  The director of finance shall transfer to the
 
15 credit of the tourism special fund, on the effective date of this
 
16 Act, any unexpended or unencumbered amount to be determined by
 
17 the director of finance in the Hawaii convention center
 
18 operations special fund and Hawaii convention center capital
 
19 special fund scheduled for repeal on the effective date of this
 
20 Act.  The director of finance shall subsequently transfer to the
 
21 credit of the tourism special fund, the remaining unexpended or
 

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

 
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 1      201B-   Convention center district rules.  The authority
 
 2 shall adopt rules for the development within the convention
 
 3 center district under chapter 91 on health, safety, building,
 
 4 planning, zoning, land use, land development, and flood plain
 
 5 management, including mitigation and permitting, which, upon
 
 6 final approval by the authority of a convention center district
 
 7 development plan, shall supersede all other inconsistent
 
 8 ordinances and rules relating to health, safety, building,
 
 9 planning, zoning, land use, land development, and flood plain
 
10 management, including mitigation and permitting, and provision of
 
11 access and utilities thereto.  The convention center district
 
12 development plan approved by the authority shall be made a part
 
13 of, and shall have the same force and effect as, the rules
 
14 aforesaid.  Rules adopted under this section shall follow
 
15 existing laws, rules, ordinances, and regulations as closely as
 
16 is consistent with standards meeting minimum requirements of good
 
17 design, pleasant amenities, health, safety, and coordinated
 
18 development, and accomplishment of the purposes of this chapter.
 
19 For purposes of chapters 501, 502, and 514A, the authority may
 
20 certify maps and plans of lands and real property interests
 
21 within the convention center district as having complied with
 
22 applicable laws and ordinances relating to consolidation,
 

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

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

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

 
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 1 or any political subdivision of the State, to the authority for
 
 2 its use.
 
 3      201B-   Public projects.  Any project or activity of any
 
 4 county or agency of the State in the convention center district
 
 5 shall be constructed, renovated, or improved in consultation with
 
 6 the authority.
 
 7      201B-   Transfer of officers and employees from the
 
 8 convention center authority to the Hawaii tourism authority.  All
 
 9 employees of the Hawaii convention center authority are
 
10 transferred to the authority and shall be exempt from chapters 76
 
11 and 77.
 
12      201B-  Transfer of functions between agencies; continuity
 
13 of rules, policies, procedures, guidelines, and other material.
 
14 All rules, policies, procedures, guidelines, and other material
 
15 adopted or developed by the convention center authority to
 
16 implement provisions of the Hawaii Revised Statutes which are
 
17 reenacted or made applicable to the authority by this Act, shall
 
18 remain in full force and effect until amended or repealed by the
 
19 board pursuant to chapter 91.  In the interim, every reference to
 
20 the convention center authority in those rules, policies,
 
21 procedures, guidelines, and other material is amended to refer to
 
22 the authority.
 

 
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 1      201B-   Transfer of functions; effect on deeds, leases,
 
 2 contracts, loans, agreements, permits, or other documents.  All
 
 3 deeds, leases, contracts, loans, agreements, permits, or other
 
 4 documents executed or entered into by or on behalf of the
 
 5 convention center authority pursuant to the provisions of the
 
 6 Hawaii Revised Statutes, which are reenacted or made applicable
 
 7 to the authority by this Act, shall remain in full force and
 
 8 effect.  Effective July 1, 1999, every reference to the
 
 9 convention center authority therein shall be construed as a
 
10 reference to the authority.
 
11      201B-   Transfer of records and equipment between agencies.
 
12 All records, equipment, machines, files, supplies, contracts,
 
13 books, papers, documents, maps, and other personal property
 
14 heretofore made, used, acquired, or held by the convention center
 
15 authority relating to the functions transferred to the Hawaii
 
16 authority shall be transferred with the functions to which they
 
17 relate.  All records, equipment, machines, files, supplies,
 
18 contracts, books, papers, documents, maps, and other personal
 
19 property heretofore made, used, acquired, or held by the
 
20 convention center authority related to basic data and visitor
 
21 research shall be transferred to the research and economic
 
22 analysis division of the department of business, economic
 
23 development, and tourism."
 

 
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 1                              PART II
 
 2      SECTION 3.  Section 201B-1, Hawaii Revised Statutes is
 
 3 amended by adding seven new definitions to read as follows:
 
 4      ""Convention center facility" or "Hawaii convention center"
 
 5 means any combination of land, buildings, and improvements
 
 6 thereon, suitable for use as a convention center; any other
 
 7 structure or facility required or useful for the operation of a
 
 8 convention center facility, including, commercial, office,
 
 9 community service, parking, garage, and other supporting service
 
10 structures, and all necessary, useful, and related equipment,
 
11 furnishings, and appurtenances.
 
12      "Developer" means any person, partnership, cooperative,
 
13 firm, nonprofit or for-profit corporation, or public agency
 
14 possessing the competence, expertise, experience, and resources,
 
15 including financial, personal, and tangible resources, required
 
16 to effectuate, directly or through other developers, the
 
17 development of a convention center, including planning, design,
 
18 and construction.
 
19      "Local governing body" means the county council of the city
 
20 and county of Honolulu.
 
21      "Public agency" means any office, department board,
 
22 commission, bureau, division, public corporation agency, or
 
23 instrumentality of the federal, state, or county government.
 

 
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 1      "Public facilities" include streets, utility and service
 
 2 corridors, and utility lines where applicable, sufficient to
 
 3 adequately service developable improvements in the district,
 
 4 sites for schools, parks, parking garage, sidewalks, pedestrian
 
 5 ways, and other community facilities. "Public facilities" shall
 
 6 also include public highways, as defined by statute, storm
 
 7 drainage systems, water systems, street lighting systems, off-
 
 8 street parking facilities, and sanitary sewerage systems.
 
 9      "Qualified person" means any individual, partnership,
 
10 corporation, public agency, or any combination or association of
 
11 the foregoing, possessing the competence, expertise, experience,
 
12 and resources, including financial, personnel, and tangible
 
13 resources, required for the purposes of a project and such other
 
14 qualifications as may be deemed desirable by the authority in
 
15 administering this chapter and which enters into a project
 
16 agreement with the authority.
 
17      "Real property" means lands, structures, and interests in
 
18 land, including lands under water and riparian rights, space
 
19 rights, air rights, and any and all other things and rights
 
20 usually included within the term.  "Real property" also means any
 
21 and all interests in such property less than full title, such as
 
22 easements, incorporeal hereditaments and every estate, interest,
 

 
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 1 or right, legal or equitable, including terms for years and liens
 
 2 thereon by way of judgments, mortgages, or otherwise."
 
 3      SECTION 4.  Section 201B-2, Hawaii Revised Statutes is
 
 4 amended by amending subsection (b) to read as follows:
 
 5      "(b) The authority shall be headed by a board of directors
 
 6 [which] that consists of [ten] twelve public voting members, one
 
 7 public, nonvoting member, one ex officio voting member, and one
 
 8 ex officio nonvoting member; provided that:
 
 9      (1)  [Ten] Twelve public, voting members shall be appointed
 
10           by the governor as provided in section 26-34, except as
 
11           otherwise provided by law;
 
12      (2)  The [ten] twelve public, voting members shall be
 
13           composed of one representative each from the city and
 
14           county of Honolulu and the counties of Hawaii, Kauai,
 
15           and Maui; the remaining public members shall be
 
16           appointed at large;
 
17      (3)  Of the [ten] twelve public, voting members, two shall
 
18           be appointed by the governor from a list of three names
 
19           nominated by the president of the senate, and two shall
 
20           be appointed by the governor from a list of three names
 
21           nominated by the speaker of the house of
 
22           representatives.
 

 
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 1      (4)  At least six of the [ten] twelve voting members shall
 
 2           have knowledge, experience, and expertise in the area
 
 3           of visitor industry management, marketing and promotion
 
 4           and at least two of the remaining six voting members
 
 5           shall have knowledge, interest and proven expertise in,
 
 6           but not limited to, one or more of the following
 
 7           fields: finance, law, architecture, commerce and trade,
 
 8           corporate management, marketing, economics and visitor
 
 9           industry.
 
10      (5)  The governor shall make appointments to ensure the
 
11           fulfillment of all requirements;
 
12      (6)  The director of business, economic development and
 
13           tourism, or a designated representative, shall be an ex
 
14           officio voting member;
 
15      (7)  The director of transportation or a designated
 
16           representative, shall be an ex officio nonvoting
 
17           member; and
 
18      (8)  The governor shall appoint a public, nonvoting member.
 
19      (c)  The public members shall be appointed by the governor
 
20 for terms of four years, except that the terms of the members
 
21 first appointed shall be for two and four years, respectively, as
 
22 designated by the governor at the time of appointment.  Each
 

 
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 1 public member shall hold office until the member's successor is
 
 2 appointed and qualified.  Section 26-34 shall be applicable
 
 3 insofar as it relates to the number of terms and consecutive
 
 4 number of years a member may serve on the board.
 
 5      (d)  The board shall elect a chairperson from among the
 
 6 voting members.  The director of business, economic development,
 
 7 and tourism shall not be chairperson of the board.
 
 8      (e)  [Six] Seven voting members shall constitute a quorum,
 
 9 whose affirmative vote shall be necessary for all actions by the
 
10 authority.  The members shall serve without compensation, but
 
11 shall be reimbursed for expenses, including traveling expenses
 
12 necessary for the performance of their duties.
 
13      (f)  The board shall appoint an executive director, exempt
 
14 from chapters 76 and 77, who shall oversee the authority staff,
 
15 and shall be compensated at a salary level set by the governor.
 
16      (g)  The authority may employ persons not subject to
 
17 chapters 76, 77, and 78 to perform and execute the functions of
 
18 the authority."
 
19      SECTION 5. Section 201B-3, Hawaii Revised Statutes is
 
20 amended as follows:
 
21      "[[]201B-3[]] Powers.  Except as otherwise limited by this
 
22 chapter, the board may:
 

 
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 1      (1)  Sue and be sued;
 
 2      (2)  Have a seal and alter the same at pleasure;
 
 3      (3)  Make and execute contracts and all other instruments
 
 4           necessary or convenient for the exercise of its powers
 
 5           and functions under this chapter[,]; provided that the
 
 6           authority may enter into contracts and agreements for a
 
 7           period of up to five years;
 
 8      (4)  Make and alter bylaws for its organization and internal
 
 9           management;
 
10      (5)  Adopt rules in accordance with chapter 91 with respect
 
11           to its projects, operations, properties, and
 
12           facilities;
 
13      (6)  Through its executive director represent the authority
 
14           in communications with the governor and with the
 
15           legislature;
 
16      (7)  Through its executive director appoint officers,
 
17           agents, and employees, prescribe their duties and
 
18           qualifications, and fix their salaries, without regard
 
19           to chapters 76, 77 and 78;
 
20      (8)  Through its executive director purchase supplies,
 
21           equipment, or furniture;
 

 
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 1      (9)  Through its executive director allocate the [space or]
 
 2           spaces [which] that are to be occupied by the authority
 
 3           and appropriate staff;
 
 4     (10)  Engage the services of qualified persons to implement
 
 5           the state's tourism marketing plan or portions thereof
 
 6           as determined by the board;
 
 7     (11)  Engage the services of consultants on a contractual
 
 8           basis for rendering professional and technical
 
 9           assistance and advice;
 
10     (12)  Procure insurance against any loss in connection with
 
11           its property and other assets and operations in such
 
12           amounts and from such insurers as it deems desirable;
 
13     (13)  Contract for and accept gifts or grants in any form
 
14           from any public agency, or any other source;
 
15     (14)  Create a vision and develop a long range plan for
 
16           tourism in Hawaii, including product development,
 
17           infrastructure, and diversification issues;
 
18     (15)  Develop, coordinate, and implement state policies and
 
19           directions for tourism and related activities taking
 
20           into account the economic, social, and physical impacts
 
21           of tourism on the State;
 

 
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 1     (16)  Develop and implement the state tourism strategic
 
 2           marketing plan, which shall be updated every three
 
 3           years, to promote and market the State as a desirable
 
 4           visitor destination;
 
 5     (17)  Have a permanent, strong focus on marketing and
 
 6           promotion;
 
 7     (18)  Conduct market development-related research as
 
 8           necessary;
 
 9     (19)  Coordinate all agencies and advise the private sector
 
10           in the development of tourism-related activities and
 
11           resources;
 
12     (20)  Work to eliminate or reduce barriers to travel in order
 
13           to provide a positive and competitive business
 
14           environment, including coordinating with the department
 
15           of transportation on issues affecting airlines and air
 
16           route development;
 
17     (21)  Market and promote sports-related activities and
 
18           events;
 
19     (22)  Coordinate the development of new products with the
 
20           public and private sectors, including the development
 
21           of sports, culture, health, education, business, and
 
22           eco-tourism;
 

 
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 1     (23)  Establish a public information and educational program
 
 2           to inform the public of tourism and tourism-related
 
 3           problems;
 
 4     (24)  Encourage the development of tourism educational,
 
 5           training, and career counseling programs;
 
 6     (25)  Establish a program to monitor, investigate, and
 
 7           respond to complaints about problems resulting directly
 
 8           or indirectly from the tourism industry and taking
 
 9           appropriate action as necessary; [and]
 
10     (26)  [Do any and all things necessary to carry out its
 
11           purposes and exercise the powers given and granted in
 
12           this chapter.] Inspect and approve development within
 
13           the convention center district for compliance with
 
14           convention center development plans and rules;
 
15     (27)  Enter into contracts for the professional marketing,
 
16           management, operation, and maintenance of the
 
17           convention center facility;
 
18     (28)  Cause a developer to prepare plans, specifications, and
 
19           designs for the construction, reconstruction,
 
20           rehabilitation, improvement, alteration, or repair of
 
21           any project, and from time to time, to modify such
 
22           plans, specifications, or designs; provided that the
 

 
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 1           plans, specifications, or designs shall be subject to
 
 2           review and approval by the authority;
 
 3     (29)  Procure insurance against any loss and any liability in
 
 4           connection with the Hawaii convention center and other
 
 5           related assets and operations in such amounts and from
 
 6           such insurers as it deems desirable;
 
 7     (30)  Upon the request of the authority and the approval of
 
 8           the governor, condemn any real property interests as
 
 9           the authority deems necessary for the development of a
 
10           convention center pursuant to chapter 101; provided
 
11           that the valuation of any such property acquired
 
12           pursuant to the exercise of the authority's power under
 
13           this subsection shall be done without regard to any
 
14           increase or decrease in the value of the property
 
15           resulting from the application of this chapter.
 
16           Property acquired by condemnation shall not be subject
 
17           to chapter 171;
 
18     (31)  Negotiate with the developer for contribution by the
 
19           developer to defray costs relating to the relocation of
 
20           persons displaced because of the development;
 
21     (32)  On behalf of the State, accept the authority to market,
 
22           manage, operate, and maintain the Hawaii convention
 
23           center facility;
 

 
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 1     (33)  The authority, with the approval of the governor, may
 
 2           issue from time to time revenue bonds (including
 
 3           refinancing bonds for the purpose of paying or retiring
 
 4           or providing for the retirement of bonds previously
 
 5           issued by the convention center authority) in amounts
 
 6           not exceeding the total amount of bonds authorized to
 
 7           be issued by the legislature for any of the authority's
 
 8           purposes.  All revenue bonds shall be issued pursuant
 
 9           to part III of chapter 39, except as provided in this
 
10           chapter.  All revenue bonds shall be issued in the name
 
11           of the authority and not in the name of the State.  The
 
12           final maturity date of the revenue bonds may be any
 
13           date not exceeding thirty years from the date of
 
14           issuance;
 
15     (34)  Pledge or assign all or any part of the receipts and
 
16           revenues of the authority;
 
17     (35)  Set and collect rents, fees, charges, or other payments
 
18           for the lease, use, occupancy, or disposition of the
 
19           Hawaii convention center facility acquired,
 
20           constructed, or reconstructed by the authority pursuant
 
21           to this chapter;
 

 
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 1     (36)  Acquire, lease as lessee or lessor, own, rent, hold,
 
 2           and dispose of real and personal property in the
 
 3           exercise of its powers and the performance of its
 
 4           duties under this chapter;
 
 5     (37)  Acquire by purchase, lease, or otherwise, and develop,
 
 6           construct, operate, own, manage, repair, reconstruct,
 
 7           enlarge, or otherwise effectuate, either directly or
 
 8           through developers, a convention center;
 
 9     (38)  Reimburse the state general fund for debt service on
 
10           general obligation bonds or reimbursable general
 
11           obligation bonds issued by the State for purposes of
 
12           the Hawaii convention center;
 
13     (39)  By itself, or in combination or association with
 
14           qualified persons, by any form of request for
 
15           proposals, as determined by the board, any law to the
 
16           contrary notwithstanding, solicit, accept, review,
 
17           reject, modify, or approve proposals, and thereafter
 
18           enter into agreements, for the initiation, undertaking,
 
19           supervision and regulation of the marketing, operation,
 
20           and maintenance of the Hawaii convention center, and
 
21           any related development; and
 

 
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 1     (40)  Do any and all things necessary to carry out its
 
 2           purposes and exercise the powers given and granted in
 
 3           this chapter."
 
 4      SECTION 6.  Section 201B-7, Hawaii Revised Statues is
 
 5 amended as follows:
 
 6      "[[]201B-7[]]  Tourism-related activities.  (a) The
 
 7 authority may enter into contracts and agreements that include
 
 8 the following:
 
 9      (1)  Tourism promotion, marketing, and development;
 
10      (2)  Market development-related research;
 
11      (3)  Product development and diversification issues;
 
12      (4)  Promotion, development, and coordination of sports-
 
13           related activities and events;
 
14      (5)  Reduction of barriers to travel;
 
15      (6)  Tourism public information and educational programs;
 
16      (7)  Programs to monitor and investigate complaints about
 
17           the problems resulting from the tourism industry in the
 
18           State; [and]
 
19      (8)  [Any and all other activities necessary to carry out
 
20           the intent of this chapter;] Marketing, management,
 
21           operation, and maintenance of the Hawaii convention
 
22           center; and
 

 
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 1      (9)  Any and all other activities necessary to carry out the
 
 2           intent of this chapter;
 
 3 [Provided] provided that for the purposes of continuity, the
 
 4 Hawaii Visitors and Convention Bureau shall be the designated
 
 5 agency to conduct the marketing and promotion of the State until
 
 6 the end of fiscal year 1998-1999 or until a date specified by the
 
 7 board.
 
 8      (b)  The authority staff shall be responsible for monitoring
 
 9 and facilitating any and all functions developed in accordance
 
10 with subsection (a)."
 
11      SECTION 7.  Section 201B-11, Hawaii Revised Statues is
 
12 amended as follows:
 
13      "[[]201B-11[]] Tourism special fund.  (a) There is
 
14 established in the state treasury the tourism special fund, into
 
15 which shall be deposited:
 
16      (1)  A portion of the revenues from any transient
 
17           accommodations tax as provided by section 237D-6.5; and
 
18      (2)  Appropriations by the legislature to the tourism
 
19           special fund; and
 
20      (3)  Gifts, grants, and other funds accepted by the
 
21           authority; and
 

 
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 1      (4)  All revenues derived from the operations of the Hawaii
 
 2           convention center; and
 
 3      (5)  All or a portion of all revenues derived from the
 
 4           operation of parking and garage facilities and other
 
 5           concessions at the Hawaii convention center; and
 
 6      (6)  All proceeds from revenue bonds issued by the
 
 7           authority.
 
 8      (b)  Moneys in the tourism special fund may be placed in
 
 9 interest-bearing accounts or otherwise invested by the authority
 
10 until such time as the moneys may be needed.  All interest
 
11 accruing from the investment of these moneys shall be credited to
 
12 the tourism special fund.
 
13      (c)  Moneys in the tourism special fund shall be used by the
 
14 authority for the purposes of this chapter, provided that not
 
15 more than three per cent of this amount shall be used for
 
16 administrative expenses; provided further that of this amount the
 
17 sum of $15,000 shall be made available for a protocol fund to be
 
18 expended at the discretion of the executive director; provided
 
19 further that moneys in the tourism special fund shall be used for
 
20 the salaries and expenses of the office of tourism established in
 
21 section 201-92[.]; provided further that moneys in the tourism
 
22 special fund shall be used to fund the debt service and operating
 
23 requirements of the Hawaii convention center.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (d)  In addition to the powers of the authority specified in
 
 2 section 201B-3, the authority may:
 
 3      (1)  Adopt rules in accordance with chapter 91, to define
 
 4           the term "revenues or moneys derived from the
 
 5           operations or use of the Hawaii convention center"; and
 
 6      (2)  Do any and all things deemed necessary to administer
 
 7           the tourism special fund."
 
 8      SECTION 8.  Section 237D-6.5, Hawaii Revised Statues is
 
 9 amended by amending subsection (b) as follows:
 
10      "(b) For the fiscal year beginning July 1, 1994, and for
 
11 each fiscal year thereafter, until December 31, 1998, revenues
 
12 collected under this chapter shall be distributed as follows:
 
13      (1)  One-sixth of the revenues collected under this chapter
 
14           shall be deposited into the Hawaii convention center
 
15           capital special fund established under section
 
16           206X-10.5;
 
17      (2)  Of the remaining revenues, five per cent shall be
 
18           retained by the State; and
 
19      (3)  Of the remainder, Kauai county shall receive 14.5 per
 
20           cent; Hawaii county shall receive 18.6 per cent; city
 
21           and county of Honolulu shall receive 44.1 per cent; and
 
22           Maui county shall receive 22.8 per cent.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

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

 
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 1           (C)  City and county of Honolulu shall receive 44.1 per
 
 2                cent; and
 
 3           (D)  Maui county shall receive 22.8 per cent;
 
 4           and
 
 5      (2)  55.2 per cent shall be deposited into the tourism
 
 6           special fund established under section 201B-11."
 
 7                             PART III
 
 8      SECTION 9.  Chapter 206X, Hawaii Revised Statutes, is
 
 9 repealed.
 
10      SECTION 10.  Act 96, Session Laws of Hawaii 1988, as amended
 
11 by Act 159, Session Laws of Hawaii 1992, as amended by Act 241,
 
12 Session Laws of Hawaii 1993, as amended by Act 75, Session Laws
 
13 of Hawaii 1994, and as amended by Act 156, Session Laws of Hawaii
 
14 1998, is amended by amending section 3 to read as follows:
 
15      "SECTION 3.  This Act shall automatically expire on [June
 
16 30, 1999.]            .
 
17      In the event any judicial or quasi-judicial proceeding is
 
18 commenced regarding the validity of this Act or any section of
 
19 this Act, or any action of the authority, the running of the
 
20 period shall be suspended until a final nonappealable
 
21 determination is made in the judicial or quasi-judicial
 
22 proceeding."
 

 
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 1      SECTION 11.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 12.  This Act shall take effect on July 1, 1999;
 
 4 provided that sections 9 and 10 of this Act shall take effect
 
 5 on       .
 

 
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