HB1519

PART I

SECTION 1. The legislature finds that the Hawaii convention center is the largest convention and exhibition facility in the State, offering more than one million square feet of meeting space that can accommodate up to thirteen thousand guests. Since its completion in 1997, the Hawaii convention center has hosted countless conventions, exhibitions, meetings, and sporting events. It has also been a critical center for emergency response operations, serving as an unemployment insurance processing and contact tracing hub during the COVID-19 pandemic and offering critical emergency shelter space during recent hurricanes and wildfires.

The legislature further finds that the Hawaii convention center is twenty-five years old and is beginning to show its age. Funding for capital improvements is urgently needed to ensure that this critical piece of state infrastructure can continue to be used to its full potential.

Accordingly, the purpose of this Act is to:

(1) Explicitly authorize the use of general obligation bond funds to supplement the convention center enterprise fund;

(2) Require the Hawaii tourism authority board of directors to expressly approve any use of general obligation bond proceeds prior to expenditure;

(3) Clarify that moneys in the convention center enterprise fund may be used for any ongoing or future major repair, maintenance, and improvement of the convention center facility; and

(4) Authorize the issuance of general obligation bonds and provide for the use of the bond proceeds for the ongoing or future major repair, maintenance, and improvement of the convention center facility.

SECTION 2. Chapter 201B, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§201B- Issuance of bonds. (a) The director of finance may issue general obligation bonds pursuant to chapter 39 in amounts authorized by the legislature.

(b) The proceeds of the bonds shall be deposited into the convention center enterprise fund established pursuant to section 201B-8 and may be used for the purposes of that section; provided that the use of any general obligation bond proceeds shall be expressly approved by the board prior to any expenditure."

SECTION 3. Section 201B-8, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established 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 for marketing the facility pursuant to section 201B-7(a)(7)[.]; and

(5) Proceeds of general obligation bonds issued pursuant to section 201B- .

(b) Moneys in the convention center enterprise special fund shall be used by the authority for the payment of expenses 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 ongoing or 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 201B-7(a)(7)."

PART II

SECTION 4. In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ , or per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the needs provided for by this Act.

SECTION 5. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary and the same sum or so much thereof as may be necessary shall be deposited into the convention center enterprise fund established pursuant to section 201B-8, Hawaii Revised Statutes.

SECTION 6. There is appropriated out of the convention center enterprise fund the sum of $ or so much thereof as may be necessary for fiscal year 2024-2025 for the ongoing or future major repair, maintenance, and improvement of the convention center facility.

The sum appropriated shall be expended by the Hawaii tourism authority for the purposes of this Act.

SECTION 7. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1519
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII