STAND. COM. REP. NO. 281

Honolulu, Hawaii

RE: S.B. No. 1198

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 1198 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TOURISM AUTHORITY,"

begs leave to report as follows:

The purpose and intent of this measure is to prohibit holdover board members of the Hawaii Tourism Authority from holding office beyond the commencement of the next legislative session following the expiration of the member's term of office.

Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism; Hawai‘i Tourism Authority; and one individual.

Your Committee finds that the Hawaii Tourism Authority is guided by a twelve-member, volunteer, Senate-confirmed Board of Directors. Hawaii Tourism Authority board members go above and beyond the call of duty for these volunteer positions and bring the depth of their professional experiences to the board table. However, recruitment for volunteer service on the Hawaii Tourism Authority's board is often challenging. Your Committee further finds that the Office of the Attorney General opined that the current laws allow a member of the Hawaii Tourism Authority to continue as a holdover after their term has expired until a successor is appointed by the Governor, without limitation. Your Committee finds that this interpretation is contrary to legislative intent and therefore this measure is necessary to clarify the existing law.

Your Committee has amended this measure by:

(1) Reducing the number of board members on the Hawaii Tourism Authority Board of Directors from twelve to nine; reducing the number of members required to have knowledge, experience, and expertise in the area of accommodations, transportation, retail, entertainment, or attractions from six to four; and reducing the maximum number of members representing, employed by, or under contract to any sector of the industry represented on the board from three to two;

(2) Reducing the number of board members necessary to constitute a quorum from seven to five; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1198, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1198, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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LYNN DECOITE, Chair