STAND. COM. REP. NO.839-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2421

S.D. 2

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Tourism and Culture, to which was referred S.B. No. 2421, S.D. 2, entitled:


begs leave to report as follows:

The purpose of this bill is to improve the operation and administration of the Hawaii Tourism Authority (HTA) by:

(1) Amending the composition of its board of directors (Board);

(2) Amending the powers and activities of the HTA; and

(3) Establishing legislative oversight provisions to allow the Legislature better access to the operations of the HTA.

The Department of Business, Economic Development, and Tourism, Hawaii Hotel Association, Retail Merchants of Hawaii, and Hawaii Attractions Association supported this bill. The National Association of Social Workers, Domestic Violence Clearinghouse and Legal Hotline, Waikiki Health Center, and Visitor Industry Coalition supported the intent of this measure. The HTA and the Hawaii Activities and Tours Association offered comments.

Upon further deliberation, your Committee has amended this measure by:

(1) Inserting the substantive contents of H.B. No. 2195 which limits the salary level used in calculating the average final compensation of the Executive Director of the HTA, for retirement purposes, to the level set for state department heads in section 26-52(3), Hawaii Revised Statutes. This provision is retroactive to January 18, 2002;

(2) Deleting the provision that no more than two members of the Board shall represent, be employed by, or be under contract to any industry represented on the Board;

(3) Deleting the provision that the salary of the Executive Director of the HTA shall not exceed 15 percent of the authorized amount for admininstrative expenses for the HTA;

(4) Repealing the provision stating that HTA's Executive Director shall be compensated at a salary level set by the Governor;

(5) Allowing the HTA to enter into contracts and agreements for a period of up to ten years, subject to the availability of funds, instead of eight years;

(6) Allowing the HTA the right to enter into contracts and agreements relating to product development and diversification issues with a focus for visitors;

(7) Deleting the provision that no contract awarded for the promotion, development, and coordination of sports-related activities and events shall be for the purposes of contract administration or contract oversight, except in the case of a single event;

(8) Allowing the HTA the right to enter into contracts and agreements relating to the promotion of Hawaii as a place for business meetings, conventions, and incentive travel;

(9) Restoring the provisions that allow the HTA the right to enter into contracts and agreements relating to:

(A) Tourism public information and educational purposes; and

(B) Programs to monitor and investigate complaints about the problems resulting from the tourism industry;


(10) Making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2421, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2421, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Tourism and Culture,