REPORT TITLE:
Convention center; tourism


DESCRIPTION:
Sunsets the convention center authority on June 30, 2001.
Assigns the responsibility to market, operate, manage, and
maintain the Hawaii convention center to the Hawaii tourism
authority on July 1, 2001.  Changes the composition of the Hawaii
tourism authority on July 1, 2001.  Transfers all moneys in the
Hawaii convention center capital and operations special funds to
the tourism special fund, effective July 1, 1999.  Transfers the
employees of the convention center authority to the Hawaii
tourism authority, and all records, equipment, and other personal
property of the convention center authority to the research and
economic analysis division of the department of business,
economic development, and tourism effective July 2, 2001.
Assigns the funding responsibility for the debt service and
operating requirements of the convention center to the Hawaii
tourism authority effective July 1, 1999.  Appropriates funds out
of the tourism special for the 1999-2001 fiscal biennium for the
operations and expenses of the convention center.  (SB816 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        816
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE CONVENTION CENTER.



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

 1      SECTION 1. The visitor industry brings almost seven million
 
 2 visitors into the State every year.  It accounts for almost
 
 3 twenty-five per cent of the gross state product and provides over
 
 4 thirty per cent of all civilian jobs.  In light of the State's
 
 5 dependence on tourism, it is extremely important that the
 
 6 development, marketing, and research of this industry be
 
 7 coordinated in a manner that is consistent with the needs of the
 
 8 State.
 
 9      As part of its economic revitalization plan for the State,
 
10 the 1998 legislature established a dedicated source of funding
 
11 for tourism marketing and development at a globally competitive
 
12 level, and created the Hawaii tourism authority to oversee the
 
13 fund.  The powers and duties of the Hawaii tourism authority
 
14 include the development and implementation of a tourism policy
 
15 for the State, and the formulation and implementation of
 
16 strategic marketing plans for Hawaii's visitor industry.
 
17      The convention center authority was created by statute in
 
18 1988.  Its primary purpose was to review for approval the
 
19 proposed convention center development plan and to supervise the
 

 
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 1 development by a developer of all development within the
 
 2 convention center district pursuant to the approved convention
 
 3 center development plan, including the development of a
 
 4 convention center facility.  Construction of the convention
 
 5 center, which was administered by the convention center
 
 6 authority, has been completed and the Hawaii convention center is
 
 7 in its first year of operation.
 
 8      It is the responsibility of the convention center authority
 
 9 to operate, manage, and maintain the Hawaii convention center
 
10 facility.  However, marketing services for the convention center
 
11 is currently provided by the Hawaii visitors and convention
 
12 bureau with funding from the Hawaii tourism authority.  As such,
 
13 the operations responsibility and the marketing responsibility of
 
14 the center are divided between two state agencies.  In the
 
15 interest of efficiency and effectiveness, these responsibilities
 
16 should fall under the purview of one agency.  As the lead state
 
17 agency for tourism, the Hawaii tourism authority should be given
 
18 these responsibilities.
 
19      However, such a transition of responsibilities from the
 
20 convention center authority to the Hawaii tourism authority
 
21 should be executed in a timely, orderly, and responsible manner
 
22 that will allow the convention center authority to address such
 
23 priority issues as noise, traffic, and clarification of the
 

 
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 1 purpose and use of the convention center, as well as enable the
 
 2 Hawaii tourism authority to adjust to its new responsibilities
 
 3 and organization, and the marketing of tourism for the State.
 
 4      The legislature further recognizes that the primary intent
 
 5 behind the development of the convention center was to bring new
 
 6 and additional outside money into the state economy.  Since the
 
 7 development of the convention center was financed by the sale of
 
 8 bonds that would be repaid by the transient accommodations tax,
 
 9 it is the State's policy to link the use of the convention center
 
10 facility with hotel room bookings.  Therefore, the legislature
 
11 finds that it is appropriate for the convention center authority
 
12 to give first priority booking at the convention center to out-
 
13 of-state bookings that would generate new tourism revenues for
 
14 the State by attracting new business and nonresident spending.
 
15      The legislature further finds that secondary priority at the
 
16 convention center should be given to booking smaller corporate
 
17 meetings, special events, trade and consumer shows,
 
18 entertainment, and other local events open to the public,
 
19 provided that it does not interfere with the booking of out-of-
 
20 state functions and that the preferred booking for local events
 
21 that do not generate new revenues for the State be booked at
 
22 other local venues such as the Neal Blaisdell Center or hotels.
 

 
 
 
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 1 Traffic and noise impacts to the community arising from the
 
 2 booking of local events at the convention center should also be
 
 3 considered.
 
 4      The legislature believes that the effectiveness of the
 
 5 convention center is to be determined by its ability to generate
 
 6 new tourism revenues for the State and not its ability to
 
 7 generate revenues to support its operations.
 
 8      The purpose of this Act is to, among other things:
 
 9      (1)  Sunset the convention center authority on June 30,
 
10           2001;
 
11      (2)  Assign the responsibility to market, operate, manage,
 
12           and maintain the Hawaii convention center facility to
 
13           the Hawaii tourism authority on July 1, 2001;
 
14      (3)  Transfer all moneys in the Hawaii convention center
 
15           capital and operations special funds to the tourism
 
16           special fund on July 1, 1999;
 
17      (4)  Assign the funding responsibility for the debt service
 
18           and operating requirements of the convention center to
 
19           the Hawaii tourism authority on July 1, 1999; and
 
20      (5)  Appropriate funds for fiscal biennium 1999-2001 from
 
21           the tourism special fund for the operations and
 
22           expenses of the convention center.
 

 
 
 
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 1      SECTION 2. Chapter 201B, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§201B-     Transfer of funds from the Hawaii convention
 
 5 center operations special fund and the Hawaii convention center
 
 6 capital special fund.  The director of finance shall transfer to
 
 7 the credit of the tourism special fund on July 1, 1999, all
 
 8 moneys in the Hawaii convention center operations special fund
 
 9 and the Hawaii convention center capital special fund."
 
10      SECTION 3.  Chapter 201B, Hawaii Revised Statutes, is
 
11 amended by adding five new sections to be appropriately
 
12 designated and to read as follows:
 
13      "§201B-     Hawaii convention center district development
 
14 plan.  (a)  The authority shall review for approval the
 
15 convention center district development plan for development
 
16 within the convention center district.  In its review of any
 
17 proposed convention center district development plan pursuant to
 
18 this chapter, the authority shall apply the criteria of the
 
19 convention center district rules and any criteria for development
 
20 within the convention center district established by the
 
21 legislature.
 

 
 
 
 
 
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 1      (b)  The authority may enter into cooperative agreements
 
 2 with qualified persons or public agencies, where the powers,
 
 3 services, and capabilities of such persons or agencies are deemed
 
 4 necessary and appropriate for review by the board of the
 
 5 development of the convention center district development plan.
 
 6      (c)  Whenever possible, the convention center district
 
 7 development plan shall be consistent with federal, state, and
 
 8 county plans.  Consideration shall be given to state goals and
 
 9 policies, adopted state plan or land use guidance policies,
 
10 county general plans, development plans, and ordinances.
 
11      §201B-     Convention center district rules.  The authority
 
12 shall establish rules for the development within the convention
 
13 center district under chapter 91 on health, safety, building,
 
14 planning, zoning, land use, land development, and flood plain
 
15 management, including mitigation and permitting, which, upon
 
16 final approval by the authority of a convention center district
 
17 development plan, shall supersede all other inconsistent
 
18 ordinances and rules relating to health, safety, building,
 
19 planning, zoning, land use, land development, and flood plain
 
20 management, including mitigation and permitting, and provision of
 
21 access and utilities thereto.  The convention center district
 
22 development plan approved by the authority shall be made a part
 
23 of, and shall have the same force and effect as, the rules
 

 
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 1 adopted under this section.  The rules shall follow existing law,
 
 2 rules, ordinances, and regulations as closely as is consistent
 
 3 with standards meeting minimum requirements of good design,
 
 4 pleasant amenities, health, safety, and coordinated development,
 
 5 and accomplishment of the purposes of this chapter.  For purposes
 
 6 of chapters 501, 502, and 514A, the authority may certify maps
 
 7 and plans of lands and real property interests within the
 
 8 convention center district as having complied with applicable
 
 9 laws and ordinances relating to consolidation, subdivision of
 
10 lands, and condominium property regimes, and such maps and plans
 
11 shall be accepted for registration or recordation by the land
 
12 court and registrar.
 
13      §201B-     Agreement with developer.  (a) The authority may
 
14 enter into an agreement with a developer for the construction,
 
15 reconstruction, rehabilitation, improvement, alteration or repair
 
16 of the convention center and all other improvements.  The
 
17 agreement shall include provision for access to, or ownership of,
 
18 adequate parking facilities in favor of the authority within the
 
19 convention center district to accommodate the activities of the
 
20 Hawaii convention center facility.  The development and
 
21 construction of the improvements within the convention center
 
22 district shall conform with the convention center development
 
23 plan approved by the authority.
 

 
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 1      (b)  As a condition and consideration of the right to
 
 2 develop the real property within the convention center district
 
 3 under the agreement, pursuant to this chapter, the developer
 
 4 shall negotiate with the State for the transfer of a marketable
 
 5 real property interest in the convention center facility to the
 
 6 State with warranty of title free and clear of all encumbrances,
 
 7 subject to declaration of condominium property regime, if any,
 
 8 and to such encumbrances and easements as shall be acceptable to
 
 9 the State.
 
10      (c)  As a further condition and consideration of the right
 
11 to develop the real property within the convention center
 
12 district under the agreement and pursuant to this chapter, the
 
13 developer shall pay a reasonable sum determined by the authority
 
14 as contribution for the payment of costs relating to:
 
15      (1)  The temporary or permanent relocation of existing
 
16           licensees and lessees, if any, who are displaced
 
17           because of the development within the convention center
 
18           district pursuant to the convention center district
 
19           development plan by the developer; or
 
20      (2)  Settlement payments in lieu of payments provided under
 
21           paragraph (1) to existing licensees and lessees, if
 
22           any, who are displaced by the developer because of the
 
23           development within the convention center district
 

 
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 1           pursuant to the convention center district development
 
 2           plan; provided that each displaced licensee or lessee
 
 3           shall have the option to select either relocation or a
 
 4           settlement payment.
 
 5      Upon the approval by the authority of the relocation plan
 
 6 that shall be prepared and submitted by the developer to the
 
 7 authority, the developer shall deliver to the authority for
 
 8 deposit into the tourism special fund, the sum determined by the
 
 9 authority in the form of a certified check, an irrevocable letter
 
10 of credit, or surety bond.  The sum determined by the authority
 
11 shall be used for the implementation of the relocation plan;
 
12 provided that the sum and all interest accrued thereon shall be
 
13 refunded to the developer in the event this chapter expires and
 
14 becomes void.
 
15      The relocation plan shall include an agreement by the
 
16 developer to give every displaced licensee or lessee who does not
 
17 elect to receive a settlement payment under paragraph (2) an
 
18 unassignable right of first refusal of any license or lease of
 
19 space within the convention center district developed and offered
 
20 for those activities similar in size and nature to the business
 
21 conducted by the licensee or lessee at the time of displacement,
 
22 unless this right is waived by any licensee or lessee.
 

 
 
 
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 1      The authority may establish a task force to assist in the
 
 2 implementation of the relocation plan.  The task force shall
 
 3 include persons representing agencies, organizations, government,
 
 4 and private interests.
 
 5      §201B-     Use of public lands.  Any provision of chapter
 
 6 171 to the contrary notwithstanding, the governor may set aside,
 
 7 transfer, convey, or lease public lands wherever situated and
 
 8 whether or not set aside to any department or agency of the State
 
 9 or any political subdivision of the State, to the authority for
 
10 its use.
 
11      §201B-     Public projects.  Any project or activity of any
 
12 county or agency of the State in the convention center district
 
13 shall be constructed, renovated, or improved in consultation with
 
14 the authority."
 
15      SECTION 4.  Section 201B-1, Hawaii Revised Statutes, is
 
16 amended by adding seven new definitions to be appropriately
 
17 inserted and to read as follows:
 
18      ""Convention center facility" or "Hawaii convention center"
 
19 means any combination of land, buildings, and improvements
 
20 thereon, suitable for use as a convention center; any other
 
21 structure or facility required or useful for the operation of a
 
22 convention center facility, including but not limited to
 

 
 
 
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 1 commercial, office, community service, parking, garage, and other
 
 2 supporting service structures; and all necessary, useful, and
 
 3 related equipment, furnishings, and appurtenances.
 
 4      "Developer" means any person, partnership, cooperative,
 
 5 firm, nonprofit or for-profit corporation, or public agency
 
 6 possessing the competence, expertise, experience, and resources,
 
 7 including financial, personal, and tangible resources, required
 
 8 to effectuate, directly or through other developers, the
 
 9 development of a convention center, including planning, design,
 
10 and construction.
 
11      "Local governing body" means the county council of the city
 
12 and county of Honolulu.
 
13      "Public agency" means any office, department, board,
 
14 commission, bureau, division, public corporation agency, or
 
15 instrumentality of the federal, state, or county government.
 
16      "Public facilities" include streets, utility and service
 
17 corridors, and utility lines where applicable, sufficient to
 
18 adequately service developable improvements in the district,
 
19 sites for schools, parks, parking garage, sidewalks, pedestrian
 
20 ways, and other community facilities.  "Public facilities" shall
 
21 also include public highways, as defined by statute, storm
 
22 drainage systems, water systems, street lighting systems, off-
 
23 street parking facilities, and sanitary sewerage systems.
 

 
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 1      "Qualified person" means any individual, partnership,
 
 2 corporation, public agency, or any combination or association of
 
 3 the foregoing, possessing the competence, expertise, experience,
 
 4 and resources, including financial, personnel, and tangible
 
 5 resources, required for the purposes of a project and such other
 
 6 qualifications as may be deemed desirable by the authority in
 
 7 administering this chapter and which enters into a project
 
 8 agreement with the authority.
 
 9      "Real property" means lands, structures, and interests in
 
10 land, including lands under water and riparian rights, space
 
11 rights, and air rights and any and all other things and rights
 
12 usually included within the term.   "Real property" also means
 
13 any and all interests in such property less than full title, such
 
14 as easements, incorporeal hereditaments and every estate,
 
15 interest, or right, legal or equitable, including terms for years
 
16 and liens thereon by way of judgments, mortgages, or otherwise."
 
17      SECTION 5.  Section 201B-2, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By amending subsection (b) to read:
 
20      "(b)  The authority shall be headed by a board of directors
 
21 which consists of [ten] twelve public, voting members, one
 
22 public, nonvoting member, one ex officio voting member, and one
 
23 ex officio nonvoting member; provided that:
 

 
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 1      (1)  [Ten] Twelve public, voting members shall be appointed
 
 2           by the governor as provided in section 26-34, except as
 
 3           otherwise provided by law;
 
 4      (2)  The [ten] twelve public, voting members shall be
 
 5           composed of one representative each from the city and
 
 6           county of Honolulu and the counties of Hawaii, Kauai,
 
 7           and Maui; the remaining public members shall be
 
 8           appointed at-large;
 
 9      (3)  Of the [ten] twelve public, voting members, two shall
 
10           be appointed by the governor from a list of three names
 
11           nominated by the president of the senate, and two shall
 
12           be appointed by the governor from a list of three names
 
13           nominated by the speaker of the house of
 
14           representatives[.];
 
15      (4)  At least six of the [ten] twelve voting members shall
 
16           have knowledge, experience, and expertise in the area
 
17           of visitor industry management, marketing and
 
18           promotion[;]
 
19      (5)  At least two of the remaining six voting members shall
 
20           have knowledge, interest, and proven expertise in, but
 
21           not limited to one or more of the following fields:
 
22           finance, law, architecture, commerce and trade,
 
23           corporate management, marketing, economics, and visitor
 
24           industry;
 

 
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 1     [(5)] (6)  The governor shall make appointments to ensure the
 
 2           fulfillment of all requirements;
 
 3     [(6)] (7)  The director of business, economic development and
 
 4           tourism, or a designated representative, shall be an ex
 
 5           officio voting member;
 
 6     [(7)] (8)  The director of transportation or a designated
 
 7           representative, shall be an ex officio nonvoting
 
 8           member; and
 
 9     [(8)] (9)  The governor shall appoint a public, nonvoting
 
10           member."
 
11      2.  By amending subsection (e) to read:
 
12      "(e)  [Six] Seven voting members shall constitute a quorum,
 
13 whose affirmative vote shall be necessary for all actions by the
 
14 authority.  The members shall serve without compensation, but
 
15 shall be reimbursed for expenses, including traveling expenses
 
16 necessary for the performance of their duties."
 
17      SECTION 6. Section 201B-3, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§201B-3 Powers.  Except as otherwise limited by this
 
20 chapter, the board may:
 
21      (1)  Sue and be sued;
 
22      (2)  Have a seal and alter the same at pleasure;
 

 
 
 
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 1      (3)  Make and execute contracts and all other instruments
 
 2           necessary or convenient for the exercise of its powers
 
 3           and functions under this chapter, provided that the
 
 4           authority may enter into contracts and agreements for a
 
 5           period of up to five years;
 
 6      (4)  Make and alter bylaws for its organization and internal
 
 7           management;
 
 8      (5)  Adopt rules in accordance with chapter 91 with respect
 
 9           to its projects, operations, properties, and
 
10           facilities;
 
11      (6)  Through its executive director represent the authority
 
12           in communications with the governor and with the
 
13           legislature;
 
14      (7)  Through its executive director appoint officers,
 
15           agents, and employees, prescribe their duties and
 
16           qualifications, and fix their salaries, without regard
 
17           to chapters 76, 77 and 78;
 
18      (8)  Through its executive director purchase supplies,
 
19           equipment, or furniture;
 
20      (9)  Through its executive director allocate the space or
 
21           spaces which are to be occupied by the authority and
 
22           appropriate staff;
 

 
 
 
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 1     (10)  Engage the services of qualified persons to implement
 
 2           the state's tourism marketing plan or portions thereof
 
 3           as determined by the board;
 
 4     (11)  Engage the services of consultants on a contractual
 
 5           basis for rendering professional and technical
 
 6           assistance and advice;
 
 7     (12)  Procure insurance against any loss in connection with
 
 8           its property and other assets and operations in such
 
 9           amounts and from such insurers as it deems desirable;
 
10     (13)  Contract for and accept gifts or grants in any form
 
11           from any public agency, or any other source;
 
12     (14)  Create a vision and develop a long range plan for
 
13           tourism in Hawaii, including product development,
 
14           infrastructure, and diversification issues;
 
15     (15)  Develop, coordinate, and implement state policies and
 
16           directions for tourism and related activities taking
 
17           into account the economic, social, and physical impacts
 
18           of tourism on the State;
 
19     (16)  Develop and implement the state tourism strategic
 
20           marketing plan, which shall be updated every three
 
21           years, to promote and market the State as a desirable
 
22           visitor destination;
 

 
 
 
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 1     (17)  Have a permanent, strong focus on marketing and
 
 2           promotion;
 
 3     (18)  Conduct market development-related research as
 
 4           necessary;
 
 5     (19)  Coordinate all agencies and advise the private sector
 
 6           in the development of tourism-related activities and
 
 7           resources;
 
 8     (20)  Work to eliminate or reduce barriers to travel in order
 
 9           to provide a positive and competitive business
 
10           environment, including coordinating with the department
 
11           of transportation on issues affecting airlines and air
 
12           route development;
 
13     (21)  Market and promote sports-related activities and
 
14           events;
 
15     (22)  Coordinate the development of new products with the
 
16           public and private sectors, including the development
 
17           of sports, culture, health, education, business, and
 
18           eco-tourism;
 
19     (23)  Establish a public information and educational program
 
20           to inform the public of tourism and tourism-related
 
21           problems;
 
22     (24)  Encourage the development of tourism educational,
 
23           training, and career counseling programs;
 

 
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 1     (25)  Establish a program to monitor, investigate, and
 
 2           respond to complaints about problems resulting directly
 
 3           or indirectly from the tourism industry and taking
 
 4           appropriate action as necessary; [and]
 
 5     (26)  Inspect and approve development within the convention
 
 6           center district for compliance with convention center
 
 7           development plans and rules;
 
 8     (27)  Enter into contracts for the professional marketing,
 
 9           management, operation, and maintenance of the
 
10           convention center facility;
 
11     (28)  Cause a developer to prepare plans, specifications, and
 
12           designs for the construction, reconstruction,
 
13           rehabilitation, improvement, alteration or repair of
 
14           any project and, from time to time, to modify such
 
15           plans, specifications, or designs; provided that the
 
16           plans, specifications, or designs shall be subject to
 
17           review and approval by the authority;
 
18     (29)  Procure insurance against any loss and any liability in
 
19           connection with the Hawaii convention center and other
 
20           related assets and operations in such amounts and from
 
21           such insurers as it deems desirable;
 
22     (30)  Upon the request of the authority and the approval of
 
23           the governor, condemn any real property interests as
 
24           the authority deems necessary for the development of a
 

 
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 1           convention center pursuant to chapter 101; provided
 
 2           that the valuation of any such property acquired
 
 3           pursuant to the exercise of the authority's power under
 
 4           this subsection shall be done without regard to any
 
 5           increase or decrease in the value of the property
 
 6           resulting from the application of this chapter.
 
 7           Property acquired by condemnation shall not be subject
 
 8           to chapter 171;
 
 9     (31)  Negotiate with the developer for contribution by the
 
10           developer to defray costs relating to the relocation of
 
11           persons displaced because of the development;
 
12     (32)  On behalf of the State, accept the authority to market,
 
13           manage, operate, and maintain the Hawaii convention
 
14           center facility;
 
15     (33)  Set and collect rents, fees, charges, or other payments
 
16           for the lease, use, occupancy, or disposition of the
 
17           Hawaii convention center facility acquired,
 
18           constructed, or reconstructed by the authority pursuant
 
19           to this chapter;
 
20     (34)  Acquire by purchase, lease, or otherwise, and develop,
 
21           construct, operate, own, manage, repair, reconstruct,
 
22           enlarge, or otherwise effectuate, either directly or
 
23           through developers, a convention center;
 

 
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 1     (35)  By itself, or in combination or association with
 
 2           qualified persons, by any form of request for
 
 3           proposals, as determined by the board, any law to the
 
 4           contrary notwithstanding, solicit, accept, review,
 
 5           reject, modify, or approve proposals, and thereafter
 
 6           enter into agreements, for the initiation, undertaking,
 
 7           supervision, and regulation of the marketing,
 
 8           operation, and maintenance of the Hawaii convention
 
 9           center, and any related development;
 
10     (36)  With the approval of the governor, may issue from time
 
11           to time revenue bonds (including refinancing bonds for
 
12           the purpose of paying, retiring, or providing for the
 
13           retirement of bonds previously issued by the convention
 
14           center authority) in amounts not exceeding the total
 
15           amount of bonds authorized to be issued by the
 
16           legislature for any of the authority's purposes.  All
 
17           revenue bonds shall be issued pursuant to part III of
 
18           chapter 39, except as provided in this chapter.  All
 
19           revenue bonds shall be issued in the name of the
 
20           authority and not in the name of the State.  The final
 
21           maturity date of the revenue bonds may be any date not
 
22           exceeding thirty years from the date of issuance;
 

 
 
 
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 1     (37)  Pledge or assign all or any part of the receipts and
 
 2           revenues of the authority;
 
 3     (38)  Acquire, lease as lessee or lessor, own, rent, hold,
 
 4           and dispose of real and personal property in the
 
 5           exercise of its powers and the performance of its
 
 6           duties under this chapter;
 
 7     (39)  Reimburse the state general fund for debt service on
 
 8           general obligation bonds or reimbursable general
 
 9           obligation funds issued by the State for purposes of
 
10           the Hawaii convention center in accordance with a
 
11           schedule determined by the director of finance, with
 
12           the approval of the governor, as may be in the best
 
13           interest of the State; and
 
14     [(26)] (40)  Do any and all things necessary to carry out its
 
15           purposes and exercise the powers given and granted in
 
16           this chapter."
 
17     SECTION 7. Section 201B-3, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19     "§201B-3 Powers.  Except as otherwise limited by this
 
20 chapter, the board may:
 
21     (1)   Sue and be sued;
 
22     (2)   Have a seal and alter the same at pleasure;
 

 
 
 
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 1     (3)   Make and execute contracts and all other instruments
 
 2           necessary or convenient for the exercise of its powers
 
 3           and functions under this chapter, provided that the
 
 4           authority may enter into contracts and agreements for a
 
 5           period of up to five years;
 
 6     (4)   Make and alter bylaws for its organization and internal
 
 7           management;
 
 8     (5)   Adopt rules in accordance with chapter 91 with respect
 
 9           to its projects, operations, properties, and
 
10           facilities;
 
11     (6)   Through its executive director represent the authority
 
12           in communications with the governor and with the
 
13           legislature;
 
14     (7)   Through its executive director appoint officers,
 
15           agents, and employees, prescribe their duties and
 
16           qualifications, and fix their salaries, without regard
 
17           to chapters 76, 77 and 78;
 
18     (8)   Through its executive director purchase supplies,
 
19           equipment, or furniture;
 
20     (9)   Through its executive director allocate the space or
 
21           spaces which are to be occupied by the authority and
 
22           appropriate staff;
 

 
 
 
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 1     (10)  Engage the services of qualified persons to implement
 
 2           the state's tourism marketing plan or portions thereof
 
 3           as determined by the board;
 
 4     (11)  Engage the services of consultants on a contractual
 
 5           basis for rendering professional and technical
 
 6           assistance and advice;
 
 7     (12)  Procure insurance against any loss in connection with
 
 8           its property and other assets and operations in such
 
 9           amounts and from such insurers as it deems desirable;
 
10     (13)  Contract for and accept gifts or grants in any form
 
11           from any public agency, or any other source;
 
12     (14)  Create a vision and develop a long range plan for
 
13           tourism in Hawaii, including product development,
 
14           infrastructure, and diversification issues;
 
15     (15)  Develop, coordinate, and implement state policies and
 
16           directions for tourism and related activities taking
 
17           into account the economic, social, and physical impacts
 
18           of tourism on the State;
 
19     (16)  Develop and implement the state tourism strategic
 
20           marketing plan, which shall be updated every three
 
21           years, to promote and market the State as a desirable
 
22           visitor destination;
 

 
 
 
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 1     (17)  Have a permanent, strong focus on marketing and
 
 2           promotion;
 
 3     (18)  Conduct market development-related research as
 
 4           necessary;
 
 5     (19)  Coordinate all agencies and advise the private sector
 
 6           in the development of tourism-related activities and
 
 7           resources;
 
 8     (20)  Work to eliminate or reduce barriers to travel in order
 
 9           to provide a positive and competitive business
 
10           environment, including coordinating with the department
 
11           of transportation on issues affecting airlines and air
 
12           route development;
 
13     (21)  Market and promote sports-related activities and
 
14           events;
 
15     (22)  Coordinate the development of new products with the
 
16           public and private sectors, including the development
 
17           of sports, culture, health, education, business, and
 
18           eco-tourism;
 
19     (23)  Establish a public information and educational program
 
20           to inform the public of tourism and tourism-related
 
21           problems;
 
22     (24)  Encourage the development of tourism educational,
 
23           training, and career counseling programs;
 

 
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 1     (25)  Establish a program to monitor, investigate, and
 
 2           respond to complaints about problems resulting directly
 
 3           or indirectly from the tourism industry and taking
 
 4           appropriate action as necessary; [and]
 
 5     (26)  With the approval of the governor, may issue from time
 
 6           to time revenue bonds (including refinancing bonds for
 
 7           the purpose of paying, retiring, or providing for the
 
 8           retirement of bonds previously issued by the convention
 
 9           center authority) in amounts not exceeding the total
 
10           amount of bonds authorized to be issued by the
 
11           legislature for any of the authority's purposes.  All
 
12           revenue bonds shall be issued pursuant to part III of
 
13           chapter 39, except as provided in this chapter.  All
 
14           revenue bonds shall be issued in the name of the
 
15           authority and not in the name of the State.  The final
 
16           maturity date of the revenue bonds may be any date not
 
17           exceeding thirty years from the date of issuance;
 
18     (27)  Pledge or assign all or any part of the receipts and
 
19           revenues of the authority;
 
20     (28)  Acquire, lease as lessee or lessor, own, rent, hold,
 
21           and dispose of real and personal property in the
 
22           exercise of its powers and the performance of its
 
23           duties under this chapter;
 

 
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 1     (29)  Reimburse the state general fund for debt service on
 
 2           general obligation bonds or reimbursable general
 
 3           obligation funds issued by the State for purposes of
 
 4           the Hawaii convention center in accordance with a
 
 5           schedule determined by the director of finance, with
 
 6           the approval of the governor, as may be in the best
 
 7           interest of the State; and
 
 8     [(26)] (30)  Do any and all things necessary to carry out its
 
 9           purposes and exercise the powers given and granted in
 
10           this chapter."
 
11      SECTION 8.  Section 201B-7, Hawaii Revised Statutes, is
 
12 amended by amending subsection (a) to read as follows:
 
13      "(a)  The authority may enter into contracts and agreements
 
14 that include the following:
 
15      (1)  Tourism promotion, marketing, and development;
 
16      (2)  Market development-related research;
 
17      (3)  Product development and diversification issues;
 
18      (4)  Promotion, development, and coordination of sports-
 
19           related activities and events;
 
20      (5)  Reduction of barriers to travel;
 
21      (6)  Tourism public information and educational programs;
 
22      (7)  Programs to monitor and investigate complaints about
 
23           the problems resulting from the tourism industry in the
 
24           State; [and]
 

 
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 1      (8)  Marketing, management, operation, and maintenance of
 
 2           the Hawaii convention center; and
 
 3      [(8)] (9)  Any and all other activities necessary to carry
 
 4           out the intent of this chapter;
 
 5 provided that for the purposes of continuity, the Hawaii Visitors
 
 6 and Convention Bureau shall be the designated agency to conduct
 
 7 the marketing and promotion of the State until the end of fiscal
 
 8 year 1998-1999 or until a date specified by the board."
 
 9      SECTION 9.  Section 201B-11, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§201B-11 Tourism [Special Fund.] special fund.  (a) There
 
12 is established in the state treasury the tourism special fund,
 
13 into which shall be deposited:
 
14      (1)  A portion of the revenues from any transient
 
15           accommodations tax as provided by section 237D-6.5;
 
16           [and]
 
17      (2)  Appropriations by the legislature to the tourism
 
18           special fund; [and]
 
19      (3)  Gifts, grants, and other funds accepted by the
 
20           authority; [and]
 
21      (4)  All revenues derived from the operations of the Hawaii
 
22           convention center;
 

 
 
 
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 1      (5)  All or a portion of all revenues derived from the
 
 2           operation of parking and garage facilities and other
 
 3           concessions at the Hawaii convention center; and
 
 4      (6)  All proceeds from revenue bonds issued by the
 
 5           authority.
 
 6      (b)  Moneys in the tourism special fund may be placed in
 
 7 interest-bearing accounts or otherwise invested by the authority
 
 8 until such time as the moneys may be needed.  All interest
 
 9 accruing from the investment of these moneys shall be credited to
 
10 the tourism special fund.
 
11      (c)  Moneys in the tourism special fund shall be used by the
 
12 authority for the purposes of this chapter[,]; provided that not
 
13 more than three per cent of this amount shall be used for
 
14 administrative expenses; provided further that of this amount the
 
15 sum of $15,000 shall be made available for a protocol fund to be
 
16 expended at the discretion of the executive director; provided
 
17 further that moneys in the tourism special fund shall be used for
 
18 the salaries and expenses of the office of tourism established in
 
19 section 201-92[.]; provided further that moneys in the tourism
 
20 special fund shall be used to fund the debt service and operating
 
21 requirements of the Hawaii convention center.
 
22      (c)  In addition to the powers of the authority specified in
 
23 section 201B-3, the authority may:
 

 
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 1      (1)  Adopt rules in accordance with chapter 91, to define
 
 2           the term "revenues or moneys derived from the
 
 3           operations or use of the Hawaii convention center"; and
 
 4      (2)  Do any and all things deemed necessary to administer
 
 5           the tourism special fund."
 
 6      SECTION 10.  Section 206X-4, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  Except as otherwise limited by this chapter, the
 
 9 authority also may:
 
10      (1)  Sue and be sued;
 
11      (2)  Have a seal and alter the same at pleasure;
 
12      (3)  Make and execute contracts and all other instruments
 
13           necessary or convenient for the exercise of its powers
 
14           and functions under this chapter;
 
15      (4)  Make and alter bylaws for its organization and internal
 
16           management;
 
17      (5)  Adopt rules in accordance with chapter 91 with respect
 
18           to its projects, operations, properties, and
 
19           facilities;
 
20      (6)  Through its executive director appoint officers,
 
21           agents, and employees, prescribe their duties and
 
22           qualifications, and fix their salaries, without regard
 
23           to chapters 76 and 77;
 

 
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 1      (7)  Review and approve the convention center development
 
 2           plan proposed by a developer, for the convention center
 
 3           district; inspect and approve development within the
 
 4           convention center district for compliance with
 
 5           convention center development plans and rules; and upon
 
 6           construction of the convention center facility, manage,
 
 7           operate, and maintain or enter into contracts for the
 
 8           professional management, operation, and maintenance of
 
 9           the convention center facility;
 
10      (8)  Cause a developer to prepare plans, specifications, and
 
11           designs for the construction, reconstruction,
 
12           rehabilitation, improvement, alteration, or repair of
 
13           any project, and from time to time, to modify such
 
14           plans, specifications, or designs; provided that the
 
15           plans, specifications, or designs shall be subject to
 
16           review and approval by the authority;
 
17      (9)  Procure insurance against any loss and any liability in
 
18           connection with the convention center and other related
 
19           assets and operations in such amounts and from such
 
20           insurers as it deems desirable;
 
21     (10)  Contract for and accept gifts or grants in any form
 
22           from any public agency, or any other source;
 

 
 
 
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 1     (11)  Upon the request of the authority and the approval of
 
 2           the governor, condemn any real property interests as
 
 3           the authority deems necessary for the development of a
 
 4           convention center pursuant to chapter 101; provided
 
 5           that the valuation of any such property acquired
 
 6           pursuant to the exercise of the authority's power under
 
 7           this subsection shall be done without regard to any
 
 8           increase or decrease in the value of the property
 
 9           resulting from the application of this chapter.
 
10           Property acquired by condemnation shall not be subject
 
11           to chapter 171;
 
12     (12)  Negotiate with the developer for contribution by the
 
13           developer to defray costs relating to the relocation of
 
14           persons displaced because of the development;
 
15     (13)  On behalf of the State, accept the authority to
 
16           operate, manage, and maintain the convention center
 
17           facility upon completion or acquisition of such
 
18           facility;
 
19     [(14) Issue revenue bonds, subject to the approval of the
 
20           legislature.  All revenue bonds shall be issued
 
21           pursuant to part III of chapter 39, except as provided
 
22           in this chapter.  All revenue bonds shall be issued in
 
23           the name of the authority and not in the name of the
 

 
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 1           State.  The final maturity date of the revenue bonds
 
 2           may be any date not exceeding thirty years from the
 
 3           date of issuance;
 
 4     (15)  Pledge or assign all or any part of the receipts and
 
 5           revenues of the authority;
 
 6     (16)] (14)  Set and collect rents, fees, charges, or other
 
 7           payments for the lease, use, occupancy, or disposition
 
 8           of the convention center facility acquired,
 
 9           constructed, or reconstructed by the authority pursuant
 
10           to this chapter; provided that in setting the rents,
 
11           fees, charges, or other payments, the authority shall
 
12           be exempt from the requirements of chapter 91, and the
 
13           fees may be established at an open public meeting
 
14           subject to the requirements of chapter 92; and provided
 
15           further that the authority may waive or substantially
 
16           discount any rent, fee, charge, or other payment for a
 
17           specific event whenever the authority determines that
 
18           the waiver or discount is in the best interest of the
 
19           convention center facility or the State by attracting
 
20           new tourist markets or conventioneers;
 
21     [(17) Acquire, lease as lessee or lessor, own, rent, hold,
 
22           and dispose of real and personal property in the
 
23           exercise of its powers and the performance of its
 
24           duties under this chapter;
 

 
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 1     (18)] (15)  Acquire by purchase, lease, or otherwise, and
 
 2           develop, construct, operate, own, manage, repair,
 
 3           reconstruct, enlarge, or otherwise effectuate, either
 
 4           directly or through developers, a convention center;
 
 5     [(19) Reimburse the state general fund for debt service on
 
 6           general obligation bonds or reimbursable general
 
 7           obligation bonds issued by the State for purposes of
 
 8           the convention center;
 
 9     (20)] (16)  Do any and all things necessary to carry out its
 
10           purposes and exercise the powers given and granted in
 
11           this chapter; and
 
12    [(21)] (17)  By itself, or in combination or association with
 
13           qualified persons, by any form of request for
 
14           proposals, as determined by the authority, any law to
 
15           the contrary notwithstanding, solicit, accept, review,
 
16           reject, modify, or approve proposals, and thereafter
 
17           enter into agreements, for a convention center
 
18           development plan, and for the initiation, undertaking,
 
19           supervision and regulation of the design, development,
 
20           financing, operation and maintenance of a convention
 
21           center facility and any related developments."
 
22      SECTION 11.  Section 206X-10.6, Hawaii Revised Statutes, is
 
23 amended by amending subsection (d) to read as follows:
 

 
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 1      "(d)  Moneys in the convention center operations special
 
 2 fund shall be used by the authority for the operation,
 
 3 maintenance, and improvement of the convention center and any
 
 4 public facilities related thereto[.], including the hiring of
 
 5 necessary staff, and the general and administrative expenses of
 
 6 the authority."
 
 7      SECTION 12.  Section 237D-6.5, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (b) as follows:
 
 9      "(b)  For the fiscal year beginning July 1, 1994, and for
 
10 each fiscal year thereafter, until December 31, 1998, revenues
 
11 collected under this chapter shall be distributed as follows:
 
12      (1)  One-sixth of the revenues collected under this chapter
 
13           shall be deposited into the convention center capital
 
14           special fund established under section 206X-10.5;
 
15      (2)  Of the remaining revenues, five per cent shall be
 
16           retained by the State; and
 
17      (3)  Of the remainder, Kauai county shall receive 14.5 per
 
18           cent[;], Hawaii county shall receive 18.6 per cent[;],
 
19           city and county of Honolulu shall receive 44.1 per
 
20           cent[;], and Maui county shall receive 22.8 per cent.
 
21      (c)  Beginning on January 1, 1999[,] and ending June 30,
 
22 1999, revenues collected under this chapter shall be distributed
 
23 as follows:
 

 
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 1      (1)  17.3 per cent of the revenues collected under this
 
 2           chapter shall be deposited into the convention center
 
 3           capital special fund established under section 206X-
 
 4           10.5;
 
 5      (2)  37.9 per cent of the revenues collected under this
 
 6           chapter shall be deposited into the tourism special
 
 7           fund established under section 201B-11; and
 
 8      (3)  44.8 per cent of the revenues collected under this
 
 9           chapter shall be transferred as follows[;]:  Kauai
 
10           county shall receive 14.5 per cent[;], Hawaii county
 
11           shall receive 18.6 per cent, city and county of
 
12           Honolulu shall receive 44.1 per cent, and Maui county
 
13           shall receive 22.8 per cent.
 
14      (d)  Beginning July 1, 1999, revenues collected under this
 
15 chapter shall be distributed as follows:
 
16      (1)  44.8 per cent of the revenues collected under this
 
17           chapter shall be transferred as follows:  Kauai county
 
18           shall receive 14.5 per cent, Hawaii county shall
 
19           receive 18.6 per cent, city and county of Honolulu
 
20           shall receive 44.1 per cent, and Maui county shall
 
21           receive 22.8 per cent; and
 
22      (2)  55.2 per cent shall be deposited into the tourism
 
23           special fund established under section 201B-11."
 

 
Page 36                                                    816
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 1      SECTION 13.  Section 206X-10.5, Hawaii Revised Statutes, is
 
 2 repealed.
 
 3      ["§206X-10.5  Convention center capital special fund.(a)
 
 4 There is established in the state treasury the convention center
 
 5 capital special fund, into which shall be deposited:
 
 6      (1)  A portion of the revenues from the transient
 
 7           accommodations tax, as provided by section 237D-6.5;
 
 8      (2)  All proceeds from revenue bonds issued by the
 
 9           authority; and
 
10      (3)  Appropriations by the legislature to the convention
 
11           center capital special fund.
 
12      (b)  In addition to the powers of the authority specified in
 
13 section 206X-4, the authority may do any and all things deemed
 
14 necessary to administer the convention center capital special
 
15 fund.
 
16      (c)  Moneys in the convention center capital special fund
 
17 may be placed in interest-bearing accounts or otherwise invested
 
18 by the authority until such time as the moneys may be needed.
 
19 All interest accruing from the investment of these moneys shall
 
20 be credited to the convention center capital special fund.
 
21      (d)  Moneys in the convention center capital special fund
 
22 shall be used by the authority for the following purposes:
 

 
 
 
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 1      (1)  Planning, design, improvement, construction, land
 
 2           acquisition, equipment, and furnishing necessary for
 
 3           the development or maintenance of a convention center;
 
 4      (2)  Constructing the convention center and any public
 
 5           facilities related thereto;
 
 6      (3)  Payment of debt service on revenue bonds issued by the
 
 7           authority for purposes of the convention center,
 
 8           establishment of debt service and other reserves deemed
 
 9           necessary by the authority or the State, and
 
10           reimbursement of the state general fund for debt
 
11           service on general obligation bonds or reimbursable
 
12           general obligation bonds issued by the State for
 
13           purposes of the convention center; and
 
14      (4)  Any other purpose deemed necessary by the authority for
 
15           the purpose of planning, improving, and developing the
 
16           convention center facility."]
 
17      SECTION 14.  Section 206X-10.6, Hawaii Revised Statutes, is
 
18 repealed.
 
19      ["[206X-10.6]  Convention center operations special fund.
 
20 (a)  There is established in the state treasury the convention
 
21 center operations special fund, into which shall be deposited:
 
22      (1)  All revenues or moneys derived from the operations or
 
23           use of the convention center;
 

 
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 1      (2)  All or a portion of all revenues derived from the
 
 2           operation of parking and garage facilities and other
 
 3           concessions at the convention center; and
 
 4      (3)  Appropriations by the legislature.
 
 5      (b)  In addition to the powers of the authority specified in
 
 6 section 206X-4, the authority may:
 
 7      (1)  Adopt rules in accordance with chapter 91, to define
 
 8           the term "revenues or moneys derived from the
 
 9           operations or use of the convention center"; and
 
10      (2)  Do any and all things deemed necessary to administer
 
11           the convention center operations special fund.
 
12      (c)  Moneys in the convention center operations special fund
 
13 may be placed in interest-bearing accounts or otherwise invested
 
14 by the authority until such time as the moneys may be needed.
 
15 All interest accruing from the investment of these moneys shall
 
16 be credited to the convention center operations special fund.
 
17      (d)  Moneys in the convention center operations special fund
 
18 shall be used by the authority for the operation, maintenance,
 
19 and improvement of the convention center and any public
 
20 facilities related thereto."]
 
21      SECTION 15.  Chapter 206X, Hawaii Revised Statutes, is
 
22 repealed.
 

 
 
 
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 1      SECTION 16.  Section 3 of Act 96, Session Laws of Hawaii
 
 2 1988, as amended by Act 159, Session Laws of Hawaii 1992, as
 
 3 amended by Act 241, Session Laws of Hawaii 1993, as amended by
 
 4 Act 75, Session Laws of Hawaii, and Act 156, Session Laws of
 
 5 Hawaii 1998, is amended by amending section 3 to read as follows:
 
 6      "SECTION 3.  This Act shall automatically expire on June 30,
 
 7 [1999.] 2001.
 
 8      In the event any judicial or quasi-judicial proceeding is
 
 9 commenced regarding the validity of this Act or any section of
 
10 this Act, or any action of the authority, the running of the
 
11 period shall be suspended until a final nonappealable
 
12 determination is made in the judicial or quasi-judicial
 
13 proceeding."
 
14      SECTION 17.  There is appropriated out of the tourism
 
15 special fund of the State of the Hawaii the sum of $402,000 or so
 
16 much thereof as may be necessary for fiscal year 1999-2000 and
 
17 the sum of $402,000 or so much thereof as may be necessary for
 
18 fiscal year 2000-2001 for the expenses and operations of the
 
19 convention center.
 
20      The sums appropriated shall be expended by the convention
 
21 center authority for the purposes of this Act.
 
22      SECTION 18.  (a)  All employees of the Hawaii convention
 
23 center authority are transferred to the Hawaii tourism authority
 
24 and shall be exempt from chapters 76 and 77.
 

 
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 1      (b)  All rules, policies, procedures, guidelines, and other
 
 2 material adopted or developed by the convention center authority
 
 3 to implement provisions of the Hawaii Revised Statutes which are
 
 4 reenacted or made applicable to the Hawaii tourism authority by
 
 5 this Act, shall remain in full force and effect until amended or
 
 6 repealed by the board pursuant to chapter 91.  In the interim,
 
 7 every reference to the convention center authority in those
 
 8 rules, policies, procedure, guidelines, and other material is
 
 9 amended to refer to the Hawaii tourism authority.
 
10      (c)  All deeds, leases, contracts, loans, agreements,
 
11 permits, or other documents executed or entered into by or on
 
12 behalf of the convention center authority pursuant to the
 
13 provisions of the Hawaii Revised Statutes, which are reenacted or
 
14 made applicable to the authority by this Act, shall remain in
 
15 full force and effect.  Effective July 1, 2001, every reference
 
16 to the convention center authority therein shall be construed as
 
17 a reference to the Hawaii tourism authority.
 
18      (d)  All records, equipment, machines, files, supplies,
 
19 contracts, books, papers, documents, maps, and other personal
 
20 property heretofore made, used, acquired, or held by the
 
21 convention center authority relating to the functions transferred
 
22 to the Hawaii tourism authority shall be transferred with the
 
23 functions to which they relate.  All records, equipment,
 
24 machines, files, supplies, contracts, books, papers, documents,
 

 
Page 41                                                    816
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 1 maps, and other personal property heretofore made, used,
 
 2 acquired, or held by the convention center authority related to
 
 3 basic data and visitor research shall be transferred to the
 
 4 research and economic analysis division of the department of
 
 5 business, economic development, and tourism.
 
 6      SECTION 19.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8      SECTION 20.  This Act shall take effect on July 1, 1999;
 
 9 provided that:
 
10      (1)  Sections 3, 4, 5, 6, 8, 15, and 18 shall take effect on
 
11           July 1, 2001;
 
12      (2)  Section 16 shall take effect on June 29, 1999; and
 
13      (3)  Section 7 shall be repealed on June 30, 2001.