STAND. COM. REP. NO. 967

Honolulu, Hawaii

RE: S.B. No. 1522

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1522, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to dissolve the Hawaii Tourism Authority and replace it with an Office of Tourism and Destination Management.

Your Committee received written comments in opposition to this measure from one individual.

Your Committee received written comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Taxation; Hawaii Tourism Authority; Kohala Coast Resort Association; Hawaii Lodging and Tourism Association; and Maui Hotel and Lodging Association.

Your Committee finds that replacing the Hawaii Tourism Authority with a new agency that is subject to different requirements will help to improve the State's management of marketing Hawaii as a tourism destination.

Your Committee has amended this measure by:

(1) Making the Office of Tourism and Destination Management more independent of the Department of Business, Economic Development, and Tourism;

(2) Establishing that the Office of Tourism and Destination Management will be headed by an Executive Director rather than an Administrator;

(3) Redefining "regenerative tourism";

(4) Amending the responsibilities of the Tourism and Marketing Branch and the Destination Management Branch;

(5) Establishing the Board of Directors of the Office of Tourism and Destination Management;

(6) Transferring the rights, powers, duties, employees, contracts, and rules of the Hawaii Tourism Authority to the Office of Tourism and Destination Management, instead of the Department of Business, Economic Development, and Tourism;

(7) Specifying positions in the Office of Tourism and Destination Management; and

(8) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1522, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1522, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair