Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 459

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


   Your Committee on Economic Development, to which was
referred S.B. No. 459 entitled: 


begs leave to report as follows:
   The purpose of this measure is to require that one of the
at-large public voting members of the Hawaii Tourism Authority
(HTA) be a representative of the Office of Hawaiian Affairs.

   Your Committee received testimony in support of this measure
from the Office of Hawaiian Affairs.  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.
Currently, four of the ten public voting members represent the
counties and the remaining public members are appointed at-large,
with two from a list of three names nominated by the President of
the Senate, and two from a list of three names nominated by the
Speaker of the House of Representatives.

   Your Committee also finds that a significant number of
tourism activities and programs are based on Hawaii's indigenous
culture, that of the Hawaiian people.  Despite the importance of
Hawaiian cultural history and traditions in attracting visitors

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to the State, currently there is no requirement to provide for
representation from the Hawaiian community to the HTA board.

   Your Committee believes this measure addresses the
importance of including the Hawaiian community as an active
participant in planning and promoting 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. 459 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

                                LORRAINE R. INOUYE, Chair

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