STAND. COM. REP. NO. 2491

Honolulu, Hawaii

RE: S.B. No. 2400

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2400 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:

(1) Reduce the number of members on the Hawaii Tourism Authority Board of Directors and number of members that constitute a quorum; and

(2) Prohibit holdover board members of the Hawaiʻi 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 Hawaiʻi Tourism Authority.

Your Committee finds that the Hawaii Tourism Authority is currently guided by a twelve-member, volunteer, Senate-confirmed Board of Directors. Accordingly, recruitment for volunteer service on the Hawaii Tourism Authority's board is often challenging. This measure reduces the number of board members and the number of members necessary to constitute a quorum in order to the support the Board's ability to conduct its important work. Your Committee further finds that a recent Attorney General opinion provides that existing law allows a member of the Hawaii Tourism Authority Board of Directors to continue as a holdover member after their term has expired, without limitation, until a successor is appointed by the Governor. Your Committee finds that this interpretation is contrary to legislative intent and this measure is necessary to clarity the existing law.

Your Committee has amended this measure by:

(1) Amending the membership provisions of the Hawaii Tourism Authority Board of Directors to exclude persons who have served as members of the Board of Directors of a current contractor of the Hawaii Tourism Authority until at least two years have expired between the person's termination from service to the contractor;

(2) Deleting language that would have excluded persons who have served as a member of the Board of Directors of the Hawaii Visitors and Convention Bureau;

(3) Inserting language to require that no person whose business, position, or other undertakings in which the person may have a financial interest constituting a conflict of interest shall serve as a member of the Hawaii Tourism Board of Directors;

(4) Inserting language to require that no board member shall, for a fee or other consideration, act in a representative capacity or assist a person, business, or entity that has been awarded a contract by the Hawaii Tourism Authority; and

(5) Making a technical, nonsubstantive amendment 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. 2400, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2400, 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