Bill Text: HI SB2573 | 2022 | Regular Session | Introduced

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Bill Title: Relating To Tourism.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-24 - Referred to EET/GVO, WAM. [SB2573 Detail]

Download: Hawaii-2022-SB2573-Introduced.html

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THE SENATE	S.B. NO.	2573
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TOURISM.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part   .  TOURISM

     §201-A  Definitions.  As used in this part, unless the context otherwise requires:

     "Agency" means any agency, department, authority, board, commission, the university of Hawaii, or any other unit of the State or its political subdivisions.

     "Commission" means the tourism commission established pursuant to section 201-C.

     "Convention center facility" or "convention center" means any combination of land, buildings, and improvements thereon, acquired or developed by the State, and includes exhibition halls, meeting rooms, a plenary session hall, and support space that reflect a Hawaiian sense of place; any other structure or facility required or useful for the operation of a convention center, including commercial, office, community service, parking, garage, and other supporting service structures; and all necessary, useful, and related equipment, furnishings, and appurtenances.

     "Office" means the office of tourism established pursuant to section 201-B.

     "Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

     §201-B  Office of tourism; established.  (a)  There is established an office of tourism within the department.

     (b)  The office may:

     (1)  Develop, coordinate, and implement state policies and directions for tourism and related activities, taking into account the economic, social, and physical impacts of tourism on the State, Hawaii's natural environment, and areas frequented by visitors; provided that the office shall undertake these activities in conjunction with, and subject to the approval of, the tourism commission;

     (2)  Have a permanent, strong focus on Hawaii brand management;

     (3)  Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, culture, health and wellness, education, technology, agriculture, and nature tourism;

     (4)  Coordinate all agencies and advise the private sector in the development of tourism-related activities and resources;

     (5)  Work to eliminate or reduce barriers to travel to provide a positive and competitive business environment, including coordinating with the department of transportation on issues affecting airlines and air route development;

     (6)  Establish a program to monitor, investigate, and respond to complaints about problems resulting directly or indirectly from the tourism industry and taking appropriate action as necessary;

     (7)  Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201-H;

     (8)  Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

     (9)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (10)  Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source;

    (11)  Set and collect rents, fees, charges, or other payments for the lease, use, occupancy, or disposition of the convention center facility without regard to chapter 91;

    (12)  Operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, the state convention center; and

    (13)  Take actions necessary to carry out its purposes and responsibilities pursuant to this part or perform other functions required or authorized by law.

     (c)  Except as otherwise expressly provided by this part, the office shall not directly conduct tourism promotion, marketing, or development activities, but shall contract with a qualified organization to perform tourism promotion, marketing, and development; provided that any contract entered into by the office pursuant to this subsection shall be vetted, approved, and reviewed by the tourism commission pursuant to section 201‑C(e).  The contracted entity may:

     (1)  Conduct market development-related research as necessary;

     (2)  Market and promote sports-related activities and events; and

     (3)  Establish a public information and educational program to inform the public of tourism and tourism-related problems; and

     (4)  Encourage the development of tourism educational, training, and career counseling programs.

     (d)  The office of tourism may enter into contracts or other instruments necessary or convenient for the exercise of its duties and functions under this part; provided that:

     (1)  Any contract entered into by the office with a value of more than $       shall be evaluated, approved, and reviewed by the tourism commission pursuant to section 201-C(e);

     (2)  All contracts and agreements shall be for a period of no more than five years, subject to the availability of funds; and

     (3)  No agreement for the use of the convention center facility shall be for a period of more than ten years.

     (e)  As used in this section, "Hawaii brand" shall have the same meaning as in section 201-E.

     §201-C  Tourism commission; established.  (a)  There is established within the department a tourism commission.

     (b)  The tourism commission shall be headed by a board of directors.  The board shall comprise nine members who shall be appointed by the governor as provided in section 26-34; provided that the governor shall invite one member from each of the following organizations to serve on the board:

     (1)  An organization representing the airline industry;

     (2)  An organization representing the hotel industry;

     (3)  A non-profit organization that advocates for Native Hawaiian development and advancement in the tourism industry;

     (4)  A non-profit organization that advocates for the enhancement of cultural, economic, political, and community development of Native Hawaiians;

     (5)  A statewide chamber of commerce;

     (6)  An investment firm that advocates for and invests in initiatives that support sustainability, renewable energy, clean transportation, water management, and waste management;

     (7)  An organization representing entities that offer tours, attractions, or activities to the public;

     (8)  An organization representing marketing professionals, or the Hawaii-based chapter of that organization; and

     (9)  The school of travel industry management of the university of Hawaii at Manoa.

     (c)  The tourism commission shall elect a chairperson from among its members.

     (d)  The members of the tourism commission shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

     (e)  The commission shall:

     (1)  Recommend policies to be adopted by the office;

     (2)  Review and evaluate all offers received in response to a contract solicitation pursuant to this part in which the value of the contract is expected to exceed $        , and make recommendations to the office regarding the award of the contracts;

     (3)  Approve all contracts having a value of more than $        entered into by the office;

     (4)  Monitor and review the performance of all contracts having a value of more than $        awarded pursuant to this part;

     (5)  Review annually the expenditure of public funds by any visitor industry organization that contracts with the office to perform tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of tourism; and

     (5)  Review and recommend to the office the disposition of any grant application pursuant to this part.

     (e)  The office of tourism shall provide administrative support to the tourism commission.

     (f)  The commission may adopt rules pursuant to chapter 91 necessary to carry out the purposes of this section.

     §201-D  Private attorneys.  The department may appoint or retain by contract one or more attorneys who are independent of the attorney general to provide legal services for the office solely in cases of contract negotiations in which the attorney general lacks sufficient expertise; provided that the independent attorney shall consult and work in conjunction with the designated deputy attorney general assigned to the department.

     (b)  The director may fix the compensation of the attorneys appointed or retained pursuant to this section.  Attorneys appointed or retained by contract shall be exempt from chapters 76, 78, and 88.

     §201-E  Tourism marketing plan; measures of effectiveness.  (a)  The office of tourism shall be responsible for developing a tourism marketing plan, which shall be subject to the approval of the commission.  The plan shall be a single, comprehensive document that shall be updated every year and include the following:

     (1)  Statewide Hawaii brand management efforts and programs;

     (2)  Targeted markets;

     (3)  Efforts to enter into Hawaii brand management projects that make effective use of cooperative programs;

     (4)  Program performance goals and targets that can be monitored as market gauges and used as attributes to evaluate the office's programs; and

     (5)  The office's guidance and direction for the development and coordination of promotional and marketing programs that build and promote the Hawaii brand, which are implemented through contracts and agreements with destination marketing organizations or other qualified organizations, including:

          (A)  Target markets and the results being sought;

          (B)  Key performance indicators; and

          (C)  Private sector collaborative or cooperative efforts that may be required.

     As used in this section, "Hawaii brand" means the programs that collectively differentiate the Hawaii experience from other destinations.

     (b)  In accordance with subsection (a), the office shall develop measures of effectiveness to assess the overall benefits and effectiveness of the marketing plan and include documentation of the progress of the marketing plan towards achieving the office's strategic plan goals.

     §201-F  Tourism-related activities.  (a)  The office may enter into contracts and agreements, consistent with section 201-B, that include the following:

     (1)  Tourism promotion, marketing, and development;

     (2)  Market development-related research;

     (3)  Product development and diversification issues focused on visitors;

     (4)  Promotion, development, and coordination of sports-related activities and events;

     (5)  Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;

     (6)  Reduction of barriers to travel;

     (7)  Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that contracts issued pursuant to this paragraph for the marketing of all uses of the convention center facility may be issued separately from the management, use, operation, or maintenance of the facility;

     (8)  Tourism research and statistics to:

          (A)  Measure and analyze tourism trends;

          (B)  Provide information and research to assist in the development and implementation of state tourism policy; and

          (C)  Provide tourism information on:

              (i)  Visitor arrivals, visitor characteristics, and expenditures;

              (ii)  The number of transient accommodation units available, occupancy rates, and room rates;

             (iii)  Airline-related data including seat capacity and number of flights;

             (iv)  The economic, social, and physical impacts of tourism on the State; and

               (v)  The effects of the marketing programs of the office on the measures of effectiveness developed pursuant to section 201-E(b); and

     (9)  Any and all other activities necessary to carry out the intent of this chapter;

provided that the office shall periodically submit a report of the contracts and agreements entered into by the office to the governor, the speaker of the house of representatives, and the president of the senate.

     (b)  The office of tourism, subject to the approval of the commission, shall be responsible for:

     (1)  Creating a vision and developing a long-range strategic plan for tourism in Hawaii;

     (2)  Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning social, economic, and environmental aspects of tourism development in the State;

     (3)  Providing technical or other assistance to agencies and private industry upon request;

     (4)  Perpetuating the uniqueness of the native Hawaiian culture and community, and their importance to the quality of the visitor experience, by ensuring that:

          (A)  The Hawaiian culture is accurately portrayed by Hawaii's visitor industry;

          (B)  Hawaiian language is supported and normalized as both an official language of the State as well as the foundation of the host culture that draws visitors to Hawaii;

          (C)  Hawaiian cultural practitioners and cultural sites that give value to Hawaii's heritage are supported, nurtured, and engaged in sustaining the visitor industry; and

          (D)  A native Hawaiian cultural education and training program is provided for the visitor industry workforce having direct contact with visitors; and

     (6)  Assisting the commission in reviewing annually the expenditure of public funds by any visitor industry organization that contracts with the office to perform tourism promotion, marketing, and development.

     (c)  Where public disclosure of information gathered or developed by the office or its contractors may place a business at a competitive disadvantage or may impair or frustrate the office's ability to either compete as a visitor destination or obtain or utilize information for a legitimate government function, the office may withhold from public disclosure competitively sensitive information including:

     (1)  Completed survey forms and questionnaire forms;

     (2)  Coding sheets; and

     (3)  Database records of the information.

     §201-G  Convention center enterprise special fund.  (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 201-F(a)(7).

     (b)  Moneys in the convention center enterprise special fund shall be used by the office 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 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 201-F(a)(7).

     (c)  Moneys in the convention center enterprise special fund may be:

     (1)  Placed in interest-bearing accounts; provided that the depository in which the money is deposited furnishes security as provided in section 38-3; or

     (2)  Otherwise invested by the office until such time as the moneys may be needed; provided that the office shall limit its investments to those listed in section 36-21.

All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund.

     §201-H  Tourism emergency.  (a)  If the department determines that the occurrence of a world conflict, terrorist threat, national or global economic crisis, natural disaster, outbreak of disease, or other catastrophic event adversely affects Hawaii's tourism industry by resulting in a substantial interruption in the commerce of the State and adversely affecting the welfare of its people, the director shall submit a request to the governor to declare that a tourism emergency exists.

     (b)  Upon declaration by the governor that a tourism emergency exists pursuant to subsection (a), the office or an entity contracted by the office shall develop and implement measures to respond to the tourism emergency, including providing assistance to tourists during the emergency; provided that any tourism emergency response measure implemented pursuant to this subsection shall not include any provision that would adversely affect the organized labor force in tourism-related industries.  With respect to a national or global economic crisis only, in addition to the governor's declaration of the existence of a tourism emergency, no action in response to the tourism emergency declaration may be taken by the department without the governor's express approval.

     §201-I  Tourism emergency special fund.  (a)  There is established outside the state treasury a tourism emergency special fund to be administered by the office, into which shall be deposited the revenues prescribed by section 237D-6.5(b) and all investment earnings credited to the assets of the fund.

     (b)  Moneys in the special fund shall be used exclusively to provide for the development and implementation of emergency measures to respond to any tourism emergency pursuant to section 201-H, including providing emergency assistance to tourists during the tourism emergency.

     (c)  Use of the special fund, consistent with subsection (b), shall be provided for in articles, bylaws, resolutions, or other instruments executed by the office as administrator for the special fund.

     §201-J  Exemption of office from taxation.  All revenues and receipts derived by the office from any project or a project agreement or other agreement pertaining thereto shall be exempt from all state taxation.  Any right, title, and interest of the office in any project shall also be exempt from all state taxation.  Except as otherwise provided by law, the interest of a qualified person or other user of a project or a project agreement or other agreements related to a project shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the qualified person or user.

     §201-K  Assistance by state and county agencies; advisory group.  (a)  Any state or county agency may render services upon request of the office.

     (b)  The office may establish an advisory group that may meet monthly or as the office deems necessary, which may include the director of business, economic development, and tourism, director of transportation, chairperson of the board of land and natural resources, and executive director of the state foundation on culture and the arts to advise the office on matters relating to their respective departments or agency in the preparation and execution of suggested:

     (1)  Measures to respond to tourism emergencies pursuant to section 201-H;

     (2)  Programs for the management, improvement, and protection of Hawaii's natural environment and other areas frequented by visitors;

     (3)  Measures to address issues affecting airlines, air routes, and barriers to travel to Hawaii; and

     (4)  Programs to perpetuate the cultures of Hawaii and engage local communities to sustain and preserve the native Hawaiian culture.

     §201-L  Declaration of public function, purpose, and necessity.  The powers and functions granted to and exercised by the office under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.

     §201-M  Court proceedings; preferences; venue.  (a)  Any action or proceeding pursuant to this part to which the office, the department, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be preferred over all other civil cases, except election cases, in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.

     (b)  Upon application of counsel to the office, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the office may be allowed to intervene.

     (c)  Any action or proceeding pursuant to this part to which the office, the department, the State, or the county may be party, in which any question arises as to the validity of this part or any portion of this part, or any action of the office may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.

     (d)  Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.

     (e)  Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority."

PART II

     SECTION 2.  Section 23-13, Hawaii Revised Statutes, is amended by amending its title and subsections (a) through (c) to read as follows:

     "[[]§23-13[]]  [Hawaii tourism authority;] Office of tourism; audit.  (a)  The auditor shall conduct at least every five years a management and financial audit of all contracts or agreements awarded by the [Hawaii tourism authority] office of tourism to a major contractor to determine if the [authority] office of tourism and its major contractors are in compliance with all relevant programmatic and financial requirements.  The first audit shall be conducted within one year of July 1, 2002.  These audits shall include but not be limited to a review of the following:

     (1)  The responsibilities, services, and activities of all major contractors;

     (2)  The propriety of expenditures;

     (3)  Compliance by all major contractors with any laws and rules that may be in effect;

     (4)  The management and oversight of all major contractors by the [authority;] office of tourism; and

     (5)  Any additional audit issues that the auditor deems appropriate.

     (b)  The [authority] office of tourism and any private companies or agencies receiving state funds shall fully cooperate with and provide assistance to the auditor as needed with respect to its audit, and shall respond promptly to the auditor's requests in conducting this audit, including providing for records and other information requested in the course of the audit.

     (c)  The [authority] office of tourism shall compensate the auditor for expenditures incurred by the auditor in conducting the management and financial audit."

     SECTION 3.  Section 23-76, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  This section shall apply to the following:

     (1)  Section 237-24.3(4)--Amounts received by employment benefit plans and amounts received by nonprofit organizations or offices for the administration of employee benefit plans;

     (2)  Section 237-24.3(5)--Amounts received from food coupons under the federal food stamp program or vouchers under the Special Supplemental Foods Program for Women, Infants and Children;

     (3)  Section 237-24.3(6)--Amounts received from the sale of prescription drugs or prosthetic devices;

     (4)  Section 237-24.3(8)--Amounts received as dues by unincorporated merchants associations for advertising or promotion;

     (5)  Section 237-24.3(9)--Amounts received by labor organizations from real property leases;

     (6)  Section 237-24.75(2)--Reimbursements to the Hawaii convention center operator from the [Hawaii tourism authority;] office of tourism;

     (7)  Section 237-24.75(3)--Reimbursements to professional employer organizations from client companies for employee wages and fringe benefits; and

     (8)  Section 209E-11--Amounts received by qualified businesses in enterprise zones."

     SECTION 4.  Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

     (1)  By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

     (2)  By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide such representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

     (3)  By the legislative reference bureau;

     (4)  By any compilation commission that may be constituted from time to time;

     (5)  By the real estate commission for any action involving the real estate recovery fund;

     (6)  By the contractors license board for any action involving the contractors recovery fund;

     (7)  By the office of Hawaiian affairs;

     (8)  By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

     (9)  As grand jury counsel;

    (10)  By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

    (11)  By the auditor;

    (12)  By the office of ombudsman;

    (13)  By the insurance division;

    (14)  By the University of Hawaii;

    (15)  By the Kahoolawe island reserve commission;

    (16)  By the division of consumer advocacy;

    (17)  By the office of elections;

    (18)  By the campaign spending commission;

    (19)  By the [Hawaii tourism authority,] department of business, economic development, and tourism, as provided in section [201B-2.5;] 201-D;

    (20)  By the division of financial institutions;

    (21)  By the office of information practices;

    (22)  By the school facilities authority; or

    (23)  By a department, if the attorney general, for reasons deemed by the attorney general to be good and sufficient, declines to employ or retain an attorney for a department; provided that the governor waives the provision of this section."

     2.  By amending subsection (c) to read:

     "(c)  Every attorney employed by any department on a full‑time basis, except an attorney employed by the public utilities commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the [Hawaii tourism authority] department of business, economic development, and tourism as provided in section [201B-2.5,] 201‑D the office of information practices, or as grand jury counsel, shall be a deputy attorney general."

     SECTION 5.  Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

     (1)  Special out-of-school time instructional program fund under section 302A-1310;

     (2)  School cafeteria special funds of the department of education;

     (3)  Special funds of the University of Hawaii;

     (4)  Convention center enterprise special fund under section [201B-8;] 201-G;

     (5)  Special funds established by section 206E-6;

     (6)  Aloha Tower fund created by section 206J-17;

     (7)  Funds of the employees' retirement system created by section 88-109;

     (8)  Hawaii hurricane relief fund established under chapter 431P;

     (9)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

    (10)  Universal service fund established under section 269‑42;

    (11)  Emergency and budget reserve fund under section 328L‑3;

    (12)  Public schools special fees and charges fund under section 302A-1130;

    (13)  Sport fish special fund under section 187A-9.5;

    (14)  Neurotrauma special fund under section 321H-4;

    (15)  Glass advance disposal fee established by section 342G-82;

    (16)  Center for nursing special fund under section 304A‑2163;

    (17)  Passenger facility charge special fund established by section 261-5.5;

    (18)  Solicitation of funds for charitable purposes special fund established by section 467B-15;

    (19)  Land conservation fund established by section 173A-5;

    (20)  Court interpreting services revolving fund under section 607-1.5;

    (21)  Trauma system special fund under section 321‑22.5;

    (22)  Hawaii cancer research special fund;

    (23)  Community health centers special fund;

    (24)  Emergency medical services special fund;

    (25)  Rental motor vehicle customer facility charge special fund established under section 261-5.6;

    (26)  Shared services technology special fund under section 27-43;

    (27)  Automated victim information and notification system special fund established under section 353-136;

    (28)  Deposit beverage container deposit special fund under section 342G-104;

    (29)  Hospital sustainability program special fund under section 346G-4;

    (30)  Nursing facility sustainability program special fund under section 346F-4;

    (31)  Hawaii 3R's school improvement fund under section 302A-1502.4;

    (32)  After-school plus program revolving fund under section 302A-1149.5;

    (33)  Civil monetary penalty special fund under section 321‑30.2; and

[[](34)[]]  Stadium development special fund under section 109‑3.5,

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State.  All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers.  To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund.  No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

     SECTION 6.  Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each special fund, except the:

     (1)  Special out-of-school time instructional program fund under section 302A-1310;

     (2)  School cafeteria special funds of the department of education;

     (3)  Special funds of the University of Hawaii;

     (4)  Special funds established by section 206E-6;

     (5)  Aloha Tower fund created by section 206J-17;

     (6)  Funds of the employees' retirement system created by section 88-109;

     (7)  Hawaii hurricane relief fund established under chapter 431P;

     (8)  Convention center enterprise special fund established under section [201B-8;] 201-G;

     (9)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

    (10)  Universal service fund established under section 269‑42;

    (11)  Emergency and budget reserve fund under section 328L‑3;

    (12)  Public schools special fees and charges fund under section 302A-1130;

    (13)  Sport fish special fund under section 187A-9.5;

    (14)  Neurotrauma special fund under section 321H-4;

    (15)  Center for nursing special fund under section 304A-2163;

    (16)  Passenger facility charge special fund established by section 261-5.5;

    (17)  Court interpreting services revolving fund under section 607-1.5;

    (18)  Trauma system special fund under section 321‑22.5;

    (19)  Hawaii cancer research special fund;

    (20)  Community health centers special fund;

    (21)  Emergency medical services special fund;

    (22)  Rental motor vehicle customer facility charge special fund established under section 261-5.6;

    (23)  Shared services technology special fund under section 27-43;

    (24)  Nursing facility sustainability program special fund established pursuant to section 346F-4;

    (25)  Automated victim information and notification system special fund established under section 353-136;

    (26)  Hospital sustainability program special fund under section 346G-4;

    (27)  Civil monetary penalty special fund under section 321‑30.2; and

[[](28)[]]  Stadium development special fund under section 109‑3.5,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

     SECTION 7.  Section 46-11, Hawaii Revised Statutes, is amended to read as follows:

     "§46-11  Federal flood insurance.  The [Hawaii tourism authority] office of tourism in regard to the convention center district and the mayor or executive officer and the council of the various counties, in regard to the respective counties, may participate and apply on behalf of their respective district and counties for flood insurance coverage pursuant to any applicable provisions of Public Law 1016, Eighty-fourth Congress, Second Session, (70 Stat. 1078).  The [Hawaii tourism authority,] office of tourism, in regard to the convention center district, and the mayor or executive officer and the council of the various counties, in regard to the respective counties, shall be vested with the functions, powers, and duties which are necessary to enable their respective district and counties to qualify, participate, and apply for the flood insurance coverage."

     SECTION 8.  Section 88-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  A retirant may be employed without reenrollment in the system and suffer no loss or interruption of benefits provided by the system or under chapter 87A if the retirant is employed:

     (1)  As an elective officer pursuant to section 88-42.6(c) or as a member of the legislature pursuant to section 88-73(d);

     (2)  As a juror or precinct official;

     (3)  As a part-time or temporary employee excluded from membership in the system pursuant to section 88-43, as a session employee excluded from membership in the system pursuant to section 88-54.2, [as the president and chief executive officer of the Hawaii tourism authority excluded from membership in the system pursuant to section 201B-2,] or as any other employee expressly excluded by law from membership in the system; provided that:

          (A)  The retirant was not employed by the State or a county during the six calendar months prior to the first day of reemployment; and

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement;

     (4)  In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant, prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  Each employer shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability; or

     (5)  As a teacher or an administrator in a teacher shortage area identified by the department of education or in a charter school or as a mentor for new classroom teachers; provided that:

          (A)  The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;

          (B)  No agreement was entered into between the State or a county and the retirant prior to the retirement of the retirant, for the return to work by the retirant after retirement; and

          (C)  The department of education or charter school shall contribute to the pension accumulation fund the required percentage of the rehired retirant's compensation to amortize the system's unfunded actuarial accrued liability."

     SECTION 9.  Section 171-173, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§171-173[]]  Turtle Bay appraisal and due diligence.  Any appraisal and due diligence completed by the [Hawaii tourism authority] office of tourism may be used by the department of land and natural resources for the acquisition of the Turtle Bay conservation easement and other real property interests."

     SECTION 10.  Section 206E-34, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The Hawaii community development authority shall:

     (1)  Designate and develop the state-owned land for the cultural public market;

     (2)  Accept, for consideration, input regarding the establishment of the cultural public market from the following departments and agencies:

          (A)  The department of agriculture;

          (B)  The department of business, economic development, and tourism;

          (C)  The department of land and natural resources; and

          (D)  The department of labor and industrial relations; [and

          (E)  The Hawaii tourism authority;]

     (3)  Consider and determine the propriety of using public‑private partnerships in the development and operation of the cultural public market;

     (4)  Develop, distribute, and accept requests for proposals from private entities for plans to develop and operate the cultural public market; and

     (5)  Ensure that the Hawaiian culture is the featured culture in the cultural public market."

     SECTION 11.  Section 225P-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The commission shall include the following members:

     (1)  The chairs of the standing committees of the legislature with subject matter jurisdiction encompassing environmental protection and land use;

     (2)  The chairperson of the board of land and natural resources or the chairperson's designee, who shall be the co-chair of the commission;

     (3)  The director of the office of planning and sustainable development or the director's designee, who shall be the co-chair of the commission;

     (4)  The director of business, economic development, and tourism or the director's designee;

    [(5)  The chairperson of the board of directors of the Hawaii tourism authority or the chairperson's designee;

     (6)] (5)  The chairperson of the board of agriculture or the chairperson's designee;

    [(7)] (6)  The chief executive officer of the office of Hawaiian affairs or the officer's designee;

    [(8)] (7)  The chairperson of the Hawaiian homes commission or the chairperson's designee;

    [(9)] (8)  The director of transportation or the director's designee;

   [(10)] (9)  The director of health or the director's designee;

   [(11)] (10)  The adjutant general or the adjutant general's designee;

   [(12)] (11)  The chairperson of the board of education or the chairperson's designee;

   [(13)] (12)  The directors of each of the county planning departments, or the directors' designees; and

   [(14)] (13)  The manager of the coastal zone management program."

     SECTION 12.  Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:

     "§237-24.75  Additional exemptions.  In addition to the amounts exempt under section 237-24, this chapter shall not apply to:

     (1)  Amounts received as a beverage container deposit collected under chapter 342G, part VIII;

     (2)  Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances made pursuant to a contract with the [Hawaii tourism authority] office of tourism under section [201B‑7;] 201-F; and

     (3)  Amounts received by a professional employer organization that is registered with the department of labor and industrial relations pursuant to chapter 373L, from a client company equal to amounts that are disbursed by the professional employer organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to covered employees at a client company; provided that this exemption shall not apply to amounts received by a professional employer organization after:

          (A)  Notification from the department of labor and industrial relations that the professional employer organization has not fulfilled or maintained the registration requirements under this chapter; or

          (B)  A determination by the department that the professional employer organization has failed to pay any tax withholding for covered employees or any federal or state taxes for which the professional employer organization is responsible.

          As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1."

     SECTION 13.  Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:

     (1)  $1,500,000 shall be allocated to the Turtle Bay conservation easement special fund beginning July 1, 2015, for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, the proceeds of which were used to acquire the conservation easement and other real property interests in Turtle Bay, Oahu, for the protection, preservation, and enhancement of natural resources important to the State, until the bonds are fully amortized;

     (2)  $11,000,000 shall be allocated to the convention center enterprise special fund established under section [201B-8;] 201-G;

     (3)  An allocation shall be deposited into the tourism emergency special fund, established in section [201B‑10,] 201-I, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; and

     (4)  $3,000,000 shall be allocated to the special land and development fund established under section 171-19; provided that the allocation shall be expended in accordance with the Hawaii tourism authority strategic plan for:

          (A)  The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;

          (B)  Planning, construction, and repair of facilities; and

          (C)  Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.

     All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection."

PART III

     SECTION 14.  Chapter 201B, Hawaii Revised Statutes, is repealed.

PART IV

     SECTION 15.  All rights, powers, functions, and duties of the Hawaii tourism authority are transferred to the department of business, economic development, and tourism.

     All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

     No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

     If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

     SECTION 16.  All rules, policies, procedures, guidelines, and other material adopted or developed by the Hawaii tourism authority to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.

     In the interim, every reference to the Hawaii tourism authority or president and chief executive officer of the Hawaii tourism authority in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business, economic development, and tourism or director of business, economic development, and tourism, as appropriate.

     SECTION 17.  All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the Hawaii tourism authority, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect.  Upon the effective date of this Act, every reference to the Hawaii tourism authority or the president and chief executive officer of the Hawaii tourism authority therein shall be construed as a reference to the department of business, economic development, and tourism or the director of business, economic development, and tourism, as appropriate.

     SECTION 18.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii tourism authority relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

PART V

     SECTION 19.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2022-2023 for the operations of the office of tourism and tourism commission established in part II of this Act.

     The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this part.

PART VI

     SECTION 20.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 21.  This Act shall take effect on July 1, 2022; provided that the amendments made to section 237D-6.5(b), Hawaii Revised Statutes, by section 14 of this Act shall not be repealed when section 237D-6.5(b), Hawaii Revised Statutes, is reenacted on June 30, 2023, pursuant to section 9 of Act 229, Session Laws of Hawaii 2021.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

DBEDT; Hawaii Tourism Authority; Repeal; Office of Tourism; Tourism Commission; Appropriation

 

Description:

Establishes an Office of Tourism and a Tourism Commission within the Department of Business, Economic Development, and Tourism.  Dissolves the Hawaii Tourism Authority and transfers certain functions to the Office of Tourism.  Prohibits the Office of Tourism from conducting tourism marketing in-house but requires the Office of Tourism to contract with a qualified organization to conduct tourism marketing.  Appropriates moneys.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.