Report Title:
Tourism
Description:
Establishes the Hawaii Tourism Marketing Group headed by a 13-member board with tourism and hotel experience to promote and market tourism in Hawaii. Repeals the Hawaii Tourism Authority.
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2594 |
TWENTY-SECOND LEGISLATURE, 2004 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TOURISM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"CHAPTER
HAWAII TOURISM MARKETING GROUP
PART I. GENERAL PROVISIONS
§ -1 Definitions. As used in this chapter:
"Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or its political subdivisions.
"Board" means the board of directors of the Hawaii tourism marketing group established in section -2, and any successor thereto.
"Convention center facility" or "convention center" means any combination of land, buildings, and improvements thereon, acquired or developed by the State, and includes exhibition halls, meeting rooms, a plenary session hall, and support space that reflect a Hawaiian sense of place; any other structure or facility required or useful for the operation of a convention center, including commercial, office, community service, parking, garage, and other supporting service structures; and, all necessary, useful, and related equipment, furnishings, and appurtenances.
"Marketing group" means the Hawaii tourism marketing group established in -2.
"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.
§ -2 Hawaii tourism marketing group; establishment; board; staff. (a) There is established the Hawaii tourism marketing group, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The marketing group shall be placed within the department of business, economic development, and tourism for administrative purposes only.
(b) The marketing group shall be headed by a policy-making board of directors which consists of twelve public and one ex officio voting members, provided that:
(1) The twelve public, voting members shall be appointed by the governor;
(2) The twelve public, voting members shall be composed of at least one representative each from the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; the remaining public members shall be appointed at-large;
(3) Of the twelve public, voting members, two shall be appointed by the governor from a list of three names submitted for each appointment by the president of the senate, and two shall be appointed by the governor from a list of three names submitted for each appointment by the speaker of the house of representatives; and seven shall be appointed by the governor from a list of three names submitted for each appointment by the Hawaii association affiliated with the American Hotel and Lodging Association; provided that if fewer than three names are submitted for each appointment, the governor may disregard the list;
(4) Every public, voting member shall have knowledge, experience, and expertise in marketing and some experience in tourism or hotel management and at least three shall be executives of corporations that own and manage at least one hotel in Hawaii;
(5) The governor shall make appointments to ensure the fulfillment of all requirements; provided that any appointments made after July 1, 2004, shall be made to fulfill the requirements in place when the appointments are made; and
(6) The director of business, economic development, and tourism, or a designated representative, shall be an ex officio voting member.
(c) The public members shall be appointed by the governor for terms of four years, except that the terms of the members first appointed shall be for two or four years as designated by the governor at the time of appointment. Each public member shall hold office until the member's successor is appointed and qualified. Section 26-34 shall be applicable insofar as it relates to the number of terms and consecutive number of years a member may serve on the board.
(d) The board shall elect a chairperson from among the voting members. The director of business, economic development, and tourism or the designated representative shall not be chairperson of the board.
(e) Seven voting members shall constitute a quorum and a minimum of seven affirmative votes shall be necessary for all actions by the marketing group. The members shall serve without compensation, but shall be reimbursed for expenses, including traveling expenses, necessary for the performance of their duties.
(f) The board shall appoint an executive director with marketing experience, exempt from chapters 76 and 78, who shall oversee the marketing group staff; provided that the compensation package, including salary, shall not exceed fifteen per cent of the 3.5 per cent authorized for administrative expenses under section -11(c); and provided further that the compensation package shall not include private sector moneys or other contributions. The board shall set the executive director's duties, responsibilities, holidays, vacations, leaves, hours of work, and working conditions. It may grant other benefits as it deems necessary.
(g) The marketing group may employ persons not subject to chapters 76 and 78 to perform and execute the functions of the marketing group.
§ -3 Powers and duties. (a) Except as otherwise limited by this chapter, the marketing group 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 marketing group 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 marketing group 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 marketing group 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 marketing group 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 marketing group;
(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 marketing tourism in Hawaii;
(15) Develop, coordinate, and implement state policies and directions for tourism marketing and related activities;
(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 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) 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; and
(23) 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.
(b) The marketing group shall be responsible for:
(1) Promoting and marketing the tourism industry in the State;
(2) Developing and implementing the state tourism marketing plan; and
(3) Reviewing annually the expenditure of public funds by any visitor industry organization with which the marketing group contracts to perform tourism promotion and marketing. The marketing group shall also prepare annually a report of expenditures, including descriptions and evaluations of programs funded, together with any recommendations the marketing group may make and shall submit the report to the governor and the legislature as part of the annual report required under section -16.
(c) The marketing group 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.
§ -4 Meetings of the board. (a) The meetings of the board shall be open to the public as provided in section 92-3, except that when it is necessary for the board to receive information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interests of the enterprise, the board may enter into an executive meeting that is closed to the public.
(b) The board shall be subject to the procedural requirements of section 92-4, and this authorization shall be in addition to the exceptions listed in section 92-5, to enable the marketing group board to respect the proprietary requirements of enterprises with which it has business dealings."
§ -5 Exemption of Hawaii tourism marketing group from administrative supervision of boards and commissions. Notwithstanding any law to the contrary, the marketing group shall be exempt from section 26-35 with the exception of section 26-35(2), (3), (7) and (8).
§ -6 Tourism marketing plan; measures of effectiveness. (a) The marketing group shall be responsible for developing a strategic tourism marketing plan that shall be updated every three years shall include the following:
(1) Identification and evaluation of current and future tourism needs for the different regions of the State;
(2) Goals and objectives in accordance with identified needs;
(3) Statewide promotional efforts and programs;
(4) Targeted markets;
(5) Efforts to enter into brand marketing projects that make effective use of cooperative advertising programs;
(6) Measures of effectiveness for the marketing group's promotional programs; and
(7) Coordination of marketing plans of all destination marketing organizations receiving state funding prior to finalization of the marketing group's marketing plan.
The marketing group shall also develop and include in its marketing plan, goals and objectives for marketing the State to the techno-tourism niche as well as for integrating marketing objectives with existing and potential state telecommunications and information resources in the public and private sectors. The marketing group shall also coordinate the requirements for and availability of the State's existing and potential telecommunications and information resources with the department of accounting and general services.
(b) In accordance with subsection (a), the marketing group shall be responsible for developing measures of effectiveness to assess the overall benefits and effectiveness of the marketing plan and include documentation of the directly attributable benefits of the plan to the following:
(1) Hawaii's tourism industry;
(2) Employment in Hawaii;
(3) State tax revenues; and
(4) The State's lesser known and underused destinations.
§ -7 Tourism-related activities. (a) The marketing group may enter into contracts and agreements that include the following:
(1) Tourism promotion, marketing, and development;
(2) Market development-related research;
(3) Product development and diversification issues focused on visitors;
(4) Promotion, development, and coordination of sports-related activities and events;
(5) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;
(6) Reduction of barriers to travel;
(7) Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided 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; and
(8) Any and all other activities necessary to carry out the intent of this chapter;
provided that for any contract or agreement valued at $25,000 and over, the marketing group shall provide notice to the speaker of the house of representatives and the president of the senate on the same day that such notification is given to the governor.
(b) The marketing group may delegate to staff the responsibility for soliciting, awarding, and executing contracts, and monitoring and facilitating any and all functions developed in accordance with subsection (a).
§ -8 Convention center enterprise special fund. (a) There is established in the state treasury the convention center enterprise special fund, into which shall be deposited:
(1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5;
(2) All revenues or moneys derived from the operations of the convention center to include all revenues from the food and beverage service, all revenues from the parking facilities or from any concession, and all revenues from the sale of souvenirs, logo items, or any other items offered for purchase at the convention center;
(3) Private contributions, interest, compensation, gross or net revenues, proceeds, or other moneys derived from any source or for any purpose arising from the use of the convention center facility; and
(4) Appropriations by the legislature, including any transfers from the tourism marketing trust fund established under section -11 for marketing the facility pursuant to section -7(a)(7).
(b) Moneys in the convention center enterprise special fund shall be used by the marketing group 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 -7(a)(7).
PART II. TOURISM MARKETING TRUST FUND; EXEMPTIONS; REPORTS
§ -11 Tourism marketing trust fund. (a) There is established in the state treasury the tourism marketing trust 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 marketing trust fund; and
(3) Gifts, grants, and other funds accepted by the marketing group.
(b) Moneys in the tourism marketing trust fund may be placed in interest-bearing accounts or otherwise invested by marketing group until such time as the moneys may be needed. All interest accruing from the investment of these moneys shall be credited to the tourism marketing trust fund.
(c) Moneys in the tourism marketing trust fund shall be used by the marketing group for the purposes of this chapter, provided that:
(1) Not more than 3.5 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."
§ -12 Exemption of marketing group from taxation and Hawaii public procurement code. (a) All revenues and receipts derived by the marketing group from any project or a project agreement or other agreement pertaining thereto shall be exempt from all state taxation. Any right, title, and interest of the marketing group in any project shall also be exempt from all state taxation. Except as otherwise provided by law, the interest of a qualified person or other user of a project or a project agreement or other agreements related to a project shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the qualified person or user.
(b) The marketing group shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for project agreements, construction contracts, lease and sublease agreements, or other contracts unless a project agreement with respect to a project otherwise shall require.
§ -13 Assistance by state and county agencies. Any state or county agency may render services upon request of the marketing group.
§ -14 Declaration of public function, purpose, and necessity. The powers and functions granted to and exercised by the Hawaii tourism marketing group under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.
§ -15 Court proceedings; preferences; venue. (a) Any action or proceeding to which the marketing group, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be preferred over all other civil cases, except election cases, in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.
(b) Upon application of counsel to the marketing group, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the marketing group may be allowed to intervene.
(c) Any action or proceeding to which the marketing group, the State, or the county may be party, in which any question arises as to the validity of this chapter or any portion of this chapter, or any action of the marketing group may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.
(d) Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.
(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority.
§ -16 Annual report. The marketing group shall submit a complete and detailed report of its activities, expenditures, and results to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."
SECTION 2. Section 23-13, Hawaii Revised Statutes, is amended as follows:
1. By amending its title to read:
"§23-13 Hawaii tourism [authority;] marketing group; audit."
2. By amending subsections (a), (b), and (c) to read:
"(a) The auditor shall conduct at least every five years a management and financial audit of all contracts or agreements awarded by the Hawaii tourism [authority] marketing group to a major contractor to determine if the [authority] marketing group and its major contractors are in compliance with all relevant programmatic and financial requirements. The first audit shall be conducted within one year of July 1, 2002. These audits shall include but not be limited to a review of the following:
(1) The responsibilities, services, and activities of all major contractors;
(2) The propriety of expenditures;
(3) Compliance by all major contractors with any laws and rules that may be in effect;
(4) The management and oversight of all major contractors by the [authority;] marketing group; and
(5) Any additional audit issues that the auditor deems appropriate.
(b) The [authority] marketing group and any private companies or agencies receiving state funds shall fully cooperate with and provide assistance to the auditor as needed with respect to its audit, and shall respond promptly to the auditor's requests in conducting this audit, including providing for records and other information requested in the course of the audit.
(c) The [authority] marketing group shall compensate the auditor for expenditures incurred by the auditor in conducting the management and financial audit."
SECTION 3. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:
"§36-27 Transfers from special funds for central service expenses. Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:
(1) Special out-of-school time instructional program fund under section 302A-1310;
(2) School cafeteria special funds of the department of education;
(3) Special funds of the University of Hawaii;
(4) State educational facilities improvement special fund;
(5) Convention center enterprise special fund under section [201B-8;] -8;
(6) Special funds established by section 206E-6;
(7) Housing loan program revenue bond special fund;
(8) Housing project bond special fund;
(9) Aloha Tower fund created by section 206J-17;
(10) Funds of the employees' retirement system created by section 88-109;
(11) Unemployment compensation fund established under section 383-121;
(12) Hawaii hurricane relief fund established under chapter 431P;
(13) Hawaii health systems corporation special funds;
[(14) Tourism special fund established under section 201B-11;
(15)] (14) Universal service fund established under chapter 269;
[(16)] (15) Integrated tax information management systems special fund under section 231-3.2;
[(17)] (16) Emergency and budget reserve fund under section 328L-3;
[(18)] (17) Public schools special fees and charges fund under section 302A-1130(f);
[(19)] (18) Sport fish special fund under section 187A-9.5;
[(20)] (19) Neurotrauma special fund under section 321H–4;
[(21)] (20) Deposit beverage container deposit special fund under section 342G-104;
[(22)] (21) Glass advance disposal fee special fund established by section 342G-82; and
[(23)] (22) Center for nursing special fund under section 304D-5;
shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."
SECTION 4. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Each special fund, except the:
(1) Transportation use special fund established by section 261D-1;
(2) Special out-of-school time instructional program fund under section 302A-1310;
(3) School cafeteria special funds of the department of education;
(4) Special funds of the University of Hawaii;
(5) State educational facilities improvement special fund;
(6) Special funds established by section 206E-6;
(7)
Aloha Tower fund created by section 206J-17;(8) Funds of the employees' retirement system created by section 88-109;
(9) Unemployment compensation fund established under section 383-121;
(10) Hawaii hurricane relief fund established under chapter 431P;
(11) Convention center enterprise special fund established under section [201B-8;] ____-8;
(12) Hawaii health systems corporation special funds;
[(13) Tourism [special] trust fund established under section 201B-11;
(14)] (13) Universal service fund established under chapter 269;
[(15)] (14) Integrated tax information management systems special fund under section 231-3.2;
[(16)] (15) Emergency and budget reserve fund under section 328L-3;
[(17)] (16) Public schools special fees and charges fund under section 302A-1130(f);
[(18)] (17) Sport fish special fund under section 187A-9.5;
[(19)] (18) Neurotrauma special fund under section 321H-4;
[(20)] (19) Center for nursing special fund under section 304D-5; and
[(21)] (20) Passenger facility charge revenue fund established by section 261-5.5;
shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."
SECTION 5. Section 46-11, Hawaii Revised Statutes, is amended to read as follows:
"§46-11 Federal flood insurance. The Hawaii tourism [authority] marketing group in regard to the convention center district and the mayor or executive officer and the council of the various counties, in regard to the respective counties, may participate and apply on behalf of their respective district and counties for flood insurance coverage pursuant to any applicable provisions of Public Law 1016, Eighty-fourth Congress, Second Session, (70 Stat. 1078). The Hawaii tourism [authority,] marketing group, in regard to the convention center district, and the mayor or executive officer and the council of the various counties, in regard to the respective counties, shall be vested with the functions, powers, and duties which are necessary to enable their respective district and counties to qualify, participate, and apply for the flood insurance coverage."
SECTION 6. Section 102-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The bidding requirements of subsection (a) shall not apply to concessions or space on public property set aside for the following purposes:
(1) For operation of ground transportation services and parking lot operations at airports, except for motor vehicle rental operations under chapter 437D;
(2) For lei vendors;
(3) For airline and aircraft operations;
(4) For automatic teller machines and vending machines, except vending machines located at public schools operated by blind or visually handicapped persons in accordance with section 302A-412;
(5) For operation of concessions set aside without any charge;
(6) For operation of concessions by handicapped or blind persons; except concessions operated in the public schools by blind or visually handicapped persons in accordance with section 302A-412;
(7) For operation of concessions on permits revocable on notice of thirty days or less; provided that no such permits shall be issued for more than a one year period;
(8) For operation of concessions or concession spaces for a beach service association dedicated to the preservation of the Hawaii beachboy tradition, incorporated as a nonprofit corporation in accordance with state law, and whose members are appropriately licensed or certified as required by law;
(9) For operation of concessions at county zoos, botanic gardens, or other county parks which are environmentally, culturally, historically, or operationally unique and are supported, by nonprofit corporations incorporated in accordance with state law solely for purposes of supporting county aims and goals of the zoo, botanic garden, or other county park, and operating under agreement with the appropriate agency solely for such purposes, aims, and goals;
(10) For operations of concessions that furnish goods or services for which there is only one source, as determined by the head of the awarding government agency in a writing that shall be included in the contract file; and
(11) For operation of concession or concession spaces at the convention center under chapter [201B] _____."
SECTION 7. Section 184-3.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established within the state treasury a fund to be known as the state parks special fund, into which shall be deposited:
(1) All proceeds collected by the state parks programs involving park user fees, any leases or concession agreements, the sale of any article purchased from the department to benefit the state parks programs, or any gifts or contributions; provided that proceeds derived from the operation of Iolani Palace shall be used to supplement its educational and interpretive programs; and
(2) Transient accommodations tax revenues pursuant to section 237D-6.5(b)(2); provided that these moneys shall be expended in response to a master plan [developed in coordination with the Hawaii tourism authority]."
SECTION 8. Section 198D-2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) The moneys specified in subsection (b)(1), (3), (4), and (5) shall be deposited in the special land and development fund under section 171-19 for the management, maintenance, and development of trails and trail accesses under the jurisdiction of the department; provided that the moneys specified in subsection (b)(5) shall be expended for the management, maintenance, and development of trails and access areas frequented by visitors in response to a master plan [developed in coordination with the Hawaii tourism authority]."
SECTION 9. Section 201-3, Hawaii Revised Statutes, is amended to read as follows:
"§201-3 Specific research and promotional functions of the department. Without prejudice to its general functions and duties the department of business, economic development, and tourism shall have specific functions in the following areas:
(1) Industrial development. The department shall determine through technical and economic surveys the profit potential of new or expanded industrial undertakings; develop through research projects and other means new and improved industrial products and processes; promote studies and surveys to determine consumer preference as to design and quality and to determine the best methods of packaging, transporting, and marketing the State's industrial products; disseminate information to assist the present industries of the State, to attract new industries to the State, and to encourage capital investment in present and new industries in the State; assist associations of producers and distributors of industrial products to introduce such products to consumers; and make such grants or contracts as may be necessary or advisable to accomplish the foregoing;
(2) Land development. The department shall encourage the most productive use of all land in the State in accordance with a general plan developed by the department; encourage the improvement of land tenure practices on leased private lands; promote an informational program directed to landowners, producers of agricultural and industrial commodities, and the general public regarding the most efficient and most productive use of the lands in the State; and make such grants or contracts as may be necessary or advisable to accomplish the foregoing;
(3) Credit development. The department shall conduct a continuing study of agricultural and industrial credit needs; encourage the development of additional private and public credit sources for agricultural and industrial enterprises; promote an informational program to acquaint financial institutions with agricultural and industrial credit needs and the potential for agricultural and industrial expansion, and inform producers of agricultural and industrial products as to the manner in which to qualify for loans; and make such grants or contracts as may be necessary or advisable to accomplish the foregoing;
(4) Promotion. The department shall disseminate information developed for or by the department pertaining to economic development to assist present industry in the State, attract new industry and investments to the State, and assist new and emerging industry with good growth potential or prospects in jobs, exports, and new products. The industrial and economic promotional activities of the department may include the use of literature, advertising, demonstrations, displays, market testing, lectures, travel, motion picture and slide films, and such other promotional and publicity devices as may be appropriate; and
(5) Tourism research and statistics. The department shall maintain a program of research and statistics for the purpose of:
(A) Measuring and analyzing tourism trends;
(B) Providing information and research to assist in the development and implementation of state tourism policy;
(C) Encouraging and arranging for the conduct of tourism research and information development through voluntary means or through contractual services with qualified agencies, firms, or persons; and
(D) Providing tourism information to policy makers, the public, and the visitor industry. This includes:
(i) Collecting and publishing visitor-related data including visitor arrivals, visitor characteristics and expenditures;
(ii) Collecting and publishing hotel-related statistics including the number of units available, occupancy rates, and room rates;
(iii) Collecting and publishing airline-related data including seat capacity and number of flights;
(iv) Collecting information and conducting analyses of the economic, social, and physical impacts of tourism on the State;
(v) Conducting periodic studies of the impact of ongoing marketing programs of the Hawaii tourism [authority] marketing group on Hawaii's tourism industry, employment in Hawaii, state taxes, and the State's lesser known and underutilized destinations; and
(vi) Cooperate with the Hawaii tourism [authority] marketing group and provide it with the above information in a timely manner.
The department shall be the central agency to coordinate film permit activities in the State."
SECTION 10. Section 237-5.5, Hawaii Revised Statutes, is amended by amending subsections (b), (c), (d), (e), (f), and (g) to read as follows:
"(b) All investment earnings from moneys in the transient accommodations tax trust fund shall be credited to the general fund.
(c) The purpose of the transient accommodations tax trust fund is to serve as a holding account for transient accommodations tax revenues to supplement shortfalls in the tourism [special] marketing trust fund, if the tourism [special] marketing trust fund does not receive $63,292,000 in transient accommodations tax revenues as provided in this section.
(d) If the amount of transient accommodations tax revenues distributed to the tourism [special] marketing trust fund pursuant to section 237D-6.5(b)(2) is projected by the director of finance to be less than $63,292,000 in the aggregate in a fiscal year, the director of finance, at such times and in such amounts that the director shall reasonably determine, shall deposit moneys from the transient accommodations tax trust fund to the tourism [special] marketing trust fund to provide the tourism [special] marketing trust fund with a minimum of $63,292,000 in transient accommodations tax revenues in the aggregate for a fiscal year; provided that any deposit from the transient accommodations tax trust fund to the tourism [special] marketing trust fund shall be limited to the moneys available in the transient accommodations tax trust fund.
(e) If the tourism [special] marketing trust fund receives less than $63,292,000 in transient accommodations tax revenues in the aggregate for a fiscal year, even after receiving moneys from the transient accommodations tax trust fund, the shortfall shall be noncumulative and shall not represent a claim against future distributions from the transient accommodations tax trust fund.
(f) No deposit from the transient accommodations tax trust fund to the tourism [special] marketing trust fund shall be made that would cause the tourism [special] marketing trust fund to receive more than $63,292,000 in transient accommodations tax revenues in the aggregate for a fiscal year.
(g) Any moneys remaining in the transient accommodations tax trust fund at the end of each fiscal year shall be credited to the general fund; provided that, upon receipt by the tourism [special] marketing trust fund of at least $63,292,000 in transient accommodations tax revenues in the aggregate during the course of a fiscal year, the moneys in the transient accommodations tax trust fund shall thereafter be credited to the general fund."
SECTION 11. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Revenues collected under this chapter shall be distributed as follows:
(1) 17.3 per cent of the revenues collected under this chapter shall be deposited into the convention center enterprise special fund established under section [201B-8] -8; provided that beginning January 1, 2002, if the amount of the revenue collected under this paragraph exceeds $31,000,000 in any calendar year, revenues collected in excess of $31,000,000 shall be deposited into the general fund;
(2) 32.6 per cent of the revenues collected under this chapter shall be deposited into the tourism [special] marketing trust fund established under section [201B-11] -11 for tourism promotion and [visitor industry research;] provided that beginning on July 1, 2002:
(A) If the amount of revenues deposited into the tourism [special] marketing trust fund exceeds $62,292,000 in any fiscal year, of the first $1,000,000 in revenues deposited in excess of $62,292,000:
(i) Ninety per cent shall be deposited into the state parks special fund established in section 184-3.4; and
(ii) Ten per cent shall be deposited into the special land and development fund established in section 171-19 for the Hawaii statewide trail and access program;
provided that the total amount deposited into the state parks special fund and to the special land and development fund for the Hawaii statewide trail and access program shall not exceed $1,000,000 in any fiscal year;
(3) 44.8 per cent of the revenues collected under this chapter shall be transferred as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent
(4) 5.3 per cent of the revenues collected under this chapter shall be deposited into the transient accommodations tax trust fund established under section 237D-5.5.
All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection, and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection.
A two-thirds vote of the members to which each house of the legislature is entitled is required to change the percentage established in paragraph (2)."
SECTION 12. Chapter 201B, Hawaii Revised Statutes, is repealed.
SECTION 13. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 14. This Act shall take effect upon its approval.
INTRODUCED BY: |
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