Report Title:

Hawaii tourism authority

Description:

Exempts HTA from chapter 38, relating to deposits of public funds and chapter 40 relating to audits and accounting. Authorizes executive director to disburse funds by checks. Increases the amount of the tourism special fund for administration expenses to 5%. Authorizes accrued interest and revenues from agreements to be used for HTA purposes. Requires certified annual audits (HB225 HD1).

HOUSE OF REPRESENTATIVES

H.B. NO.

225

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the hawaii tourism authority.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 201B-3, Hawaii Revised Statutes, is amended to read as follows:

"201B-3 Powers and duties. (a) Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; and provided further that the authority may enter into agreements for the use of the convention center facility for a period of up to ten years;

(4) Make and alter bylaws for its organization and internal management;

(5) Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;

(6) Through its executive director represent the authority in communications with the governor and with the legislature;

(7) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapters 76 and 78;

(8) Through its executive director purchase supplies, equipment, or furniture;

(9) Through its executive director allocate the space or spaces which are to be occupied by the authority and appropriate staff;

(10) Engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the authority;

(11) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(12) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;

(13) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source, including any revenues or proceeds arising from the operation or use of the convention center;

(14) Create a vision and develop a long range plan for tourism in Hawaii;

(15) Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State and its natural resources infrastructure; provided that the authority shall support the efforts of other state and county departments or agencies to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors;

(16) Develop and implement the state tourism strategic marketing plan, which shall be updated every three years, to promote and market the State as a desirable leisure and business visitor destination;

(17) Have a permanent, strong focus on marketing and promotion;

(18) Conduct market development-related research as necessary;

(19) Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources;

(20) Work to eliminate or reduce barriers to travel in order to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development;

(21) Market and promote sports-related activities and events;

(22) Coordinate the development of new products with the counties and other public sectors and private sectors, including the development of sports, culture, health, education, business, and eco-tourism;

(23) Establish a public information and educational program to inform the public of tourism and tourism-related problems;

(24) Encourage the development of tourism educational, training, and career counseling programs;

(25) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary;

(26) Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;

(27) Notwithstanding the provisions of chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this chapter; and

(28) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility.

(b) The [[]authority[]] shall be responsible for:

(1) Promoting, marketing, and developing the tourism industry in the State;

(2) Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning social, economic, and environmental aspects of tourism development in the State;

(3) Providing technical or other assistance to agencies and private industry upon request;

(4) Developing and implementing the state tourism marketing plan; and

(5) Reviewing annually the expenditure of public funds by any visitor industry organization with which the [[]authority[]] contracts to perform tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of tourism. The [[]authority[]] shall also prepare annually a report of expenditures, including descriptions and evaluations of programs funded, together with any recommendations the [[]authority[]] may make and shall submit the report to the governor and the legislature as part of the annual report required under section 201B-16.

(c) The [[]authority[]] shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this chapter, and to perform other functions required or authorized by law.

(d) Notwithstanding any law or rule, or executive directive, order, policy, or guideline to the contrary, the authority shall not be subject to chapters 38 and 40, unless otherwise provided in this chapter."

SECTION 2. Section 201B-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Notwithstanding any law or rule or executive directive, order, policy, or guideline to the contrary, the authority shall deposit the moneys in the convention center enterprise special fund in interest-bearing accounts in any depository within the State until such time as the moneys may be needed. Any sums so deposited shall be deemed to be in the state treasury; provided that the depository into which the money is deposited furnish security as provided in section 38-3. All interest accruing from the investment of these moneys shall be credited to the convention center enterprise special fund. Moneys in the convention center enterprise special fund shall be used by the authority for the payment of any and all debt service relating to the convention center, any expense arising from any and all use, operation, maintenance, alteration, improvement, or any unforeseen or unplanned repairs of the convention center, including without limitation the food and beverage service and parking service provided at the convention center facility, the sale of souvenirs, logo items, or other items, for any future major repair, maintenance, and improvement of the convention center facility as a commercial enterprise or as a world class facility for conventions, entertainment, or public events, and for marketing the facility pursuant to section [[]201B-7(a)(7)[]]. All disbursements shall be drawn from such accounts upon checks prepared and signed as approved by the executive director or the executive director's designee and another person authorized by the board of directors."

SECTION 3. Section 201B-11, Hawaii Revised Statutes, is amended to read as follows:

"201B-11 Tourism special fund. (a) There is established in the state treasury the tourism special fund, into which shall be deposited:

(1) A portion of the revenues from any transient accommodations tax, as provided by section 237D-6.5; [and]

(2) Appropriations by the legislature to the tourism special fund; [and]

(3) Gifts, grants, and other funds accepted by the authority[.]; and

(4) All interest and any revenues or receipts derived by the authority from any project or a project agreement.

(b) [Moneys in the tourism special fund may be placed in interest-bearing accounts or otherwise invested by the authority until such time as the moneys may be needed.] All disbursements shall be drawn from such accounts upon checks prepared and signed as approved by the executive director or the executive director's designee and another person authorized by the board of directors. All interest accruing from the investment of these moneys shall be credited to the tourism special fund.

(c) Moneys in the tourism special fund shall be used by the authority for the purposes of this chapter[,]; provided that:

(1) Not more than [3.5] five per cent of this amount shall be used for administrative expenses, including $15,000 for a protocol fund to be expended at the discretion of the executive director; [and]

(2) At least $1,000,000 shall be made available to support efforts to manage, improve, and protect Hawaii's natural environment and areas frequented by visitors[.]; and

(3) Notwithstanding section 237D-6.5, all revenues derived by the authority from accrued interest, any project or a project agreement, or other agreement may be used by the authority for the purposes of this chapter."

SECTION 4. Section 201B-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]201B-16[]] Annual audit and report. The authority shall engage a certified public accountant to conduct an annual audit of its financial affairs, books, and records in accordance with generally accepted accounting principles. The authority shall submit a complete and detailed report of its activities, expenditures, and results, including the audited financial report, to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2003.