STAND. COM. REP. NO.  355-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1692

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred H.B. No. 1692 entitled:

"A BILL FOR AN ACT RELATING TO TOURISM,"

begs leave to report as follows:

The purpose of this measure is to adopt recommendations from the Office of the Auditor to improve the efficiency, transparency, and accountability of the Hawaii Tourism Authority by requiring the Authority to contain its tourism marketing plan in a single, comprehensive document, and include a report on progress toward achieving strategic plan goals in its annual report.

The Office of the Auditor supported this measure.  The Hawaii Tourism Authority offered comments on this measure.

     Your Committee has amended this measure by:

     (1)  Deleting redundant language relating to Convention Center revenues and collaboration with other public agencies;

     (2)  Requiring the Hawaii Tourism Authority to develop, instead of a tourism marketing plan, a brand management plan, which is a single document that focuses on promoting Hawaii as a unique destination, including through marketing contracts;

     (3)  Specifying that the Authority's annual report shall include information on expenditures and the brand management plan;

     (4)  Making various housekeeping and conforming amendments; and

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     Your Committee respectfully requests that the Committee on Finance, should it choose to consider this measure, consider deleting the proposed language on pages 12-13 regarding the nondisclosure of competitively sensitive or proprietary information to the public by the Hawaii Tourism Authority.  Your Committee finds that the language may hinder public transparency.  The Authority oversees a visitor industry that generates $14,400,000,000 in economic activity yearly and represents twenty percent of the State's economy.  Your Committee suggests that interested parties collaborate to develop a fair and balanced disclosure process.  Your Committee finds that this measure is important and warrants more discussion as it advances through the legislative process.

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1692, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1692, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

TOM BROWER, Chair