CONFERENCE COMMITTEE REP. 128-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2451

S.D. 2

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

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. 2451, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE CONVENTION CENTER,"

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 improve the operation of the Convention Center. More specifically, this bill:

(1) Establishes a Convention Center Enterprise Special Fund (Enterprise Special Fund) for the payment of debt service and maintenance and operating expenses of the facility;

(2) Assigns to the Hawaii Tourism Authority the right to market, operate, manage, and maintain the Convention Center facility, with a proviso that the contract for management of the facility shall include marketing for all uses of the facility;

(3) Beginning January 1, 2002, caps transient accommodations tax (TAT) revenues deposited into the Enterprise Special Fund at $28,500,000 for any calendar year and requires revenues collected in excess of $28,500,000 be deposited into the general fund;

(4) Beginning January 1, 2004, caps TAT revenues deposited into the Enterprise Special Fund at $29,000,000 for any calendar year and requires revenues collected in excess of $29,000,000 be deposited into the general fund; and

(5) Formally repeals the previous Convention Center authority law.

The provisions in this measure will reestablish a dedicated source of funds and authority for the management of the Convention Center facility provisions that lapsed when the previous convention center law sunset on June 30, 2000. Your Committee on Conference finds that these provisions will clearly delineate the responsibility and the costs associated with the Convention Center facility, and should result in more efficient management and greater accountability of state moneys.

Your Committee on Conference has amended this measure by:

(1) Including as deposits into the Enterprise Special Fund, any transfers from the Tourism Special Fund for marketing the facility;

(2) Authorize expenditures from the Enterprise Special Fund for marketing the facility;

(3) Specifying that effective January 1, 2003, and thereafter, the contract for management of the Convention Center facility shall include marketing for all uses of the facility;

(4) Beginning January 1, 2002, capping the TAT revenues deposited in the Enterprise Special Fund at $31,000,000, in any calendar year and requiring revenues in excess of $31,000,000 be deposited into the general fund;

(5) Appropriating $46,000,000 from the Enterprise Special Fund for expenditure by the HTA; and

(6) Making technical, nonsubstantive amendments for style and clarity.

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. 2451, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2451, S.D. 2, 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

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JERRY CHANG, Co-Chair

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BRIAN T. TANIGUCHI, Co-Chair

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NATHAN SUZUKI, Co-Chair