Report Title:

Hawaii Sports Authority

Description:

Establishes the Hawaii sports authority to market, promote, develop, and coordinate sports-related activities and events.

THE SENATE

S.B. NO.

1642

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to hawaii sports authority.

 

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 sports authority

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 county.

"Authority" means the Hawaii sports authority established in section -2.

"Board" means the board of directors of the Hawaii sports authority established in section -2, and any successor thereto.

"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

-2 Hawaii sports authority; establishment; board. (a) There is established within the department of business, economic development, and tourism, the Hawaii sports authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter.

(b) The authority shall be headed by a policy-making board of directors consisting of fifteen members; provided that:

(1) Three members shall be appointed by the governor as provided in section 26-34, except as otherwise provided by law;

(2) Two members shall be appointed by speaker of the house of representatives and two shall be appointed by the president of the senate;

(3) The comptroller of accounting and general services shall be an ex officio voting member;

(4) The director of business, economic development, tourism shall be an ex officio voting member;

(5) The executive director of the Hawaii tourism authority shall be an ex officio voting member;

(6) The athletic director of the intercollegiate office of administration of the University of Hawaii shall be an ex officio voting member; and

(7) The mayor of each county shall be ex officio voting members.

-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;

(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 authority's sports 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;

(14) Create a vision and develop a long-range plan for sports tourism, and sports-related activities and events, in Hawaii;

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

(16) Develop and implement a strategic marketing plan, which shall be updated every three years, to promote and market the State as a desirable sports tourism 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 sports-related activities and resources;

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

(21) Coordinate the development of new sports tourism products with the counties and other public sectors and private sectors;

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

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

(24) Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the sports tourism market and taking appropriate action as necessary.

(b) The authority shall be responsible for:

(1) Promoting, marketing, and developing sports tourism and sports-related activities and events, 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 sports tourism development in the State;

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

(4) Developing and implementing a sports marketing plan; and

(5) Reviewing annually the expenditure of public funds by any visitor industry organization with which the authority contracts to perform sports tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of sports 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 -12.

(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.

-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 authority board to respect the proprietary requirements of enterprises with which it has business dealings.

-5 Sports tourism marketing plan; measures of effectiveness. (a) The authority shall be responsible for developing a strategic sports marketing plan that shall be updated every three years and includes the following:

(1) Identification and evaluation of current and future sports 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; and

(6) Measures of effectiveness for the authority's promotional programs.

(b) In accordance with subsection (a), the authority 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 sports tourism;

(2) Employment in Hawaii;

(3) State taxes; and

(4) The State's lesser known and underutilized sports facilities.

-6 Sports tourism-related activities. (a) The authority may enter into contracts and agreements that include the following:

(1) Sports tourism promotion, marketing, and development;

(2) Market development-related research;

(3) Product development and diversification issues focused on sports-related visitors;

(4) Promotion, development, and coordination of sports-related activities and events;

(5) Promotion of Hawaii, through a coordinated statewide effort, as a sports tourism destination;

(6) Reduction of barriers to travel;

(7) 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 authority 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 authority 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).

-7 Exemption of authority from taxation and Hawaii public procurement code. (a) All revenues and receipts derived by the authority 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 authority 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 authority 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.

-8 Assistance by state and county agencies. Any state or county agency may render services upon request of the authority.

-9 Declaration of public function, purpose, and necessity. The powers and functions granted to and exercised by the Hawaii sports tourism authority under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.

-10 Court proceedings; preferences; venue. (a) Any action or proceeding to which the authority, 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 authority, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the authority may be allowed to intervene.

(c) Any action or proceeding to which the authority, 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 authority 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.

-11 Annual report. The authority 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 201B-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(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)] (21) 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)] (22) Establish a public information and educational program to inform the public of tourism and tourism-related problems;

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

[(25)] (24) 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)] (25) 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)] (26) 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)] (27) 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."

SECTION 3. Section 201B-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The authority 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)] (4) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;

[(6)] (5) Reduction of barriers to travel;

[[(7)]] (6) 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)]] (7) 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 authority 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."

SECTION 4. 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; 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 fund established under section 201B-11 for tourism promotion and visitor industry research; provided that of that amount, $10,000,000 shall be transferred annually to the department of business, economic development, and tourism to be expended by the Hawaii sports authority established under section -2 for the promotion of sports tourism and sports related activities and events; provided further that beginning on July 1, 2002:

(A) If the amount of revenues deposited into the tourism special 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 transferred to the Hawaii statewide trail and access program pursuant to section 198D-2(b)(5);

provided that the total amount deposited into the state parks special fund and to 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; and

(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."

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, 2004.

INTRODUCED BY:

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