Hawaii 2023 Regular Session

Hawaii House Bill HB1376 Compare Versions

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11 HOUSE OF REPRESENTATIVES H.B. NO. 1376 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to ECONOMIC DEVELOPMENT. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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4747 SECTION 1. The legislature finds that the Hawaii tourism authority has failed to effectively execute its duties and functions manage the tourism marketing plan for the State. In 2021, the legislature repealed the Hawaii tourism authority's exemption from the State procurement code through Act 1, Special Session Laws of Hawaii 2021. As a result, all procurements by the Hawaii tourism authority must comply with the state procurement code. Due to the mismanagement by the Hawaii tourism authority, the award of a $34,000,000 contract for the marketing of Hawaii as a tourism destination to the United States major market area has been in limbo since 2021. This situation has been widely publicized and has demonstrated the Hawaii tourism authority's noncompliance with the state procurement code. The legislature additionally finds that, prior to the establishment of the Hawaii tourism authority, the department of business, economic development, and tourism managed the tourism marketing contracts for the State. To re-establish public confidence in the State procurement process, the legislature finds that it is necessary and appropriate to dissolve the Hawaii tourism authority and transfer its duties and functions to the department of business, economic development, and tourism. Accordingly, the purpose of this Act is to: (1) Establish an office of tourism and destination management within the department of business, economic development, and tourism that encompasses regenerative tourism and best practice destination management; (2) Transfer the functions, duties, appropriations, and positions of the Hawaii tourism authority to the office of tourism and destination management; (3) Require the office of tourism and destination management to implement certain county destination management action plans; (4) Dissolve the Hawaii tourism authority; and (5) Appropriate funds. SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows: "Part . OFFICE OF TOURISM AND DESTINATION MANAGEMENT §201-A Definitions. As used in this part: "Administrator" means the administrator of tourism and destination management. "Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or its political subdivisions. "Best practice destination management" means a holistic process that ensures that tourism adds value to the economy, social fabric, and ecology of communities. "Convention center facility" or "convention center" means the Hawaii Convention Center. "Director" means the director of business, economic development, and tourism. "Hawaii brand" means the programs that collectively differentiate the Hawaii experience from other destinations. "Office" means the office of tourism and destination management established under section 201-B. "Regenerative tourism" means tourism that focuses on reducing the harm associated with tourism, and restoring the natural environment from the harm already done by tourism, through collective holistic efforts to: (1) Make net positive contributions; (2) Create conditions that allow communities to flourish; and (3) Improve destinations for current and future generations for the well-being of the environment, residents, indigenous communities, and visitors. §201-B Office of tourism and destination management; establishment; responsibilities. (a) There is established within the department an office of tourism and destination management to: (1) Create, design, and implement a long-range strategic plan for tourism in Hawaii; (2) Grow and enhance the tourism industry in the State; provided that the office's initiatives shall follow best practice destination management practices and integrate regenerative tourism; (3) Conduct strategic research through contractual services with the University of Hawaii or any qualified agency or persons that target social, economic, cultural, and environmental aspects of tourism development in the State; (4) Provide technical or other assistance to agencies and private industry upon request; (5) Focus on perpetuating the uniqueness of the Native Hawaiian culture and community, and their significance 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 an official language of the State as well as the foundation of the host culture that attracts 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 members of the visitor industry workforce who have direct contact with visitors; and (6) Review annually the expenditure of public funds by any visitor industry organization that contracts with the office to implement tourism promotion, development, and management and make recommendations necessary to ensure the effective use of the funds for the development and management of tourism. (b) There is established within the office of tourism and destination management: (1) A tourism and marketing branch to carry out the duties and functions of the office relating to tourism and marketing; (2) A convention center branch to manage the convention center and administer the convention center enterprise special fund; and (3) A destination management branch to deliver and administer programs that support best practice destination management in the State. (c) There shall be an administrator of tourism and destination management, who shall be appointed, and may be removed by the director, and who shall have knowledge, experience, and expertise in the area of accommodations, transportation, retail, entertainment, or attractions. The administrator shall be responsible for the day-to-day operations of the office. The administrator shall report to the director. The administrator shall, in the absence of the director, have all the duties and responsibilities of the director, and shall report directly to the governor. The administrator shall not be subject to chapter 76. §201-C Powers and functions, generally. (a) Except as otherwise limited by this part, the office may: (1) Sue and be sued; (2) Make and alter bylaws for its organization and internal management; (3) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable; (4) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source; (5) Design, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, cultural, and physical impacts of tourism on the State, Hawaii's natural environment, areas frequented by visitors, best practice destination management, and regenerative tourism; (6) Have a permanent and strong focus on Hawaii brand management; (7) Coordinate all agencies and engage the private sector in the development of tourism-related activities and resources; (8) Work to eliminate or reduce barriers to travel by providing a positive and competitive business environment, including coordination with the department of transportation on issues affecting airlines and air route development; (9) Market and promote sports-related and entertainment-related activities and events; (10) Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, cultural, health and wellness, education, technology, agriculture, and environmental tourism; (11) Establish: (A) A public information and educational program to inform the public of tourism and tourism-related problems; and (B) 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; (12) Encourage and engage in the development of tourism educational, training, and career counseling programs; (13) Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201-I; (14) 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; (15) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this part; (16) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility; and (17) Adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities. (b) Except as otherwise limited by this part, the office may, through the director: (1) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this part; provided that the office may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; provided further that the office may enter into agreements for the use of the convention center facility for a period of up to ten years; (2) Represent the office in communications with the governor and the legislature; (3) Provide for the appointment of an administrator, officers, agents, a sports coordinator, and employees, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if funds have been appropriated by the legislature and allotted as provided by law; (4) Purchase supplies, equipment, or furniture; (5) Allocate the space or spaces that are to be occupied by the office and appropriate staff; (6) Engage the services of qualified persons to implement the State's strategic tourism management plan or portions thereof as determined by the office; and (7) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice; (c) The office may enter into contracts and agreements that include the following: (1) Tourism promotion, development, and management; (2) Product development and diversification issues focused on visitors; (3) Promotion, development, and coordination of sports-related and entertainment-related activities and events; (4) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination; (5) Reduction of barriers to travel; (6) 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; (7) Tourism research, market development-related 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 office's strategic tourism management plan on the measures of effectiveness developed pursuant to section 201-D; and (8) Any and all other activities necessary to carry out the intent of this part. (d) The office may delegate to staff the responsibility for soliciting, awarding, and executing contracts and for monitoring and facilitating any and all contracts and agreements developed in accordance with subsection (c). (e) Where public disclosure of information gathered or developed by the office 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. (f) The office shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this part, and to perform other functions required or authorized by law. (g) The powers and functions granted to and exercised by the office under this part are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity. §201-D Strategic tourism management plan; measures of effectiveness. (a) The office shall be responsible for developing a strategic tourism management plan, that promotes tourism marketing, complies with best practice destination management, and promotes regenerative tourism. The plan shall be a single, comprehensive document that shall be updated annually 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 shall be implemented through county 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. (b) In accordance with subsection (a), the office shall develop measures of effectiveness to assess the overall benefits and effectiveness of the strategic tourism management plan and include documentation of the progress of the strategic tourism management plan toward achieving the office's strategic plan goals. §201-E Destination management action plan; objectives; county destination management action plans. To meet the destination management objectives for each county, the office shall perform the actions specified in each of the following three-year plans: (1) Oahu destination management action plan; (2) Maui Nui destination management action plan; (3) Hawaii island destination management action plan; and (4) Kauai destination management action plan, during the specified phases. §201-F 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 and may include the director, director of transportation, chair of the board of land and natural resources, chairperson of the board of trustees of the office of Hawaiian affairs, executive director of the state foundation on culture and the arts, and chair of the school of travel industry management of the University of Hawaii 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-I; (2) Programs for the management, improvement, and protection of Hawaii's natural environment and other areas frequented by visitors and residents; (3) Measures to address issues affecting airlines, air routes, and barriers to travel to Hawaii; (4) Programs to perpetuate the culture of Hawaii and engage local communities to sustain and preserve the Native Hawaiian culture; and (5) Programs that include tourism marketing, best practice destination management, and regenerative tourism as part of an overall strategic tourism management plan. §201-G Applicability of Hawaii public procurement code; convention center contractor; construction contracts. The construction contracts for the maintenance of the convention center facility by the private contractor that operates the convention center, by its direct or indirect receipt of, and its expenditure of, public funds from the department or the office, or both, shall be subject to part III of chapter 103D. §201-H Convention center enterprise special fund. (a) There is established in the state treasury 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-C(c)(7). (b) Moneys in the convention center enterprise special fund shall be used by the office for: (1) 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; (2) The sale of souvenirs, logo items, or other items; (3) 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 (4) Marketing the facility pursuant to section 201-C(c)(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-I Tourism emergency. (a) If the director 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 shall develop and implement measures to respond to the tourism emergency, including providing assistance to visitors 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 office without the governor's express approval. §201-J Tourism emergency special fund. (a) There is established outside the state treasury a tourism emergency special fund to be administered by the director, 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-I, including providing emergency assistance to visitors 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 director as administrator for the special fund. §201-K Exemption 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-L Private attorneys. (a) The director 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 office. (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-M Court proceedings; preferences; venue. (a) Any action or proceeding to which the office, the State, or the county may be a party, in which any question arises as to the validity of this part, 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 part in which the office may be allowed to intervene. (c) Any action or proceeding to which the office, 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. §201-N Annual report. The office shall submit a complete and detailed report of its activities, expenditures, and results, including the progress of the strategic tourism management plan, developed pursuant to section 201-D, toward achieving the office's strategic plan goals, to the governor and the legislature at least twenty days prior to the convening of each regular session. The annual report shall include the descriptions and evaluations of programs funded, any contracts and agreements entered into by the office during the calendar year, and any recommendations the office may make." SECTION 3. 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, as provided in section 201B-2.5;] office of tourism and destination management, as provided in section 201-L; (20) By the division of financial institutions; (21) By the office of information practices; (22) By the school facilities authority; (23) By the Mauna Kea stewardship and oversight authority; or (24) 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 as provided in section 201B-2.5,] office of tourism and destination management, as provided in section 201-L, the Mauna Kea stewardship and oversight authority, the office of information practices, or as grand jury counsel, shall be a deputy attorney general." SECTION 4. 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-H; (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 5. 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-H; (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 6. Section 84-18, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows: "(e) Subject to the restrictions imposed in subsections (a) through (d), the following individuals shall not represent any person or business for a fee or other consideration regarding any legislative action or administrative action, as defined in section 97-1, for twelve months after termination from their respective positions: (1) The governor; (2) The lieutenant governor; (3) The administrative director of the State; (4) The attorney general; (5) The comptroller; (6) The chairperson of the board of agriculture; (7) The director of finance; (8) The director of business, economic development, and tourism; (9) The director of commerce and consumer affairs; (10) The adjutant general; (11) The superintendent of education; (12) The chairperson of the Hawaiian homes commission; (13) The director of health; (14) The director of human resources development; (15) The director of human services; (16) The director of labor and industrial relations; (17) The chairperson of the board of land and natural resources; (18) The director of public safety; (19) The director of taxation; (20) The director of transportation; (21) The president of the University of Hawaii; (22) The executive administrator of the board of regents of the University of Hawaii; (23) The administrator of the office of Hawaiian affairs; (24) The chief information officer; (25) The executive director of the agribusiness development corporation; (26) The executive director of the campaign spending commission; (27) The executive director of the Hawaii community development authority; (28) The executive director of the Hawaii housing finance and development corporation; [(29) The president and chief executive officer of the Hawaii tourism authority; (30)] (29) The executive officer of the public utilities commission; [(31)] (30) The state auditor; [(32)] (31) The director of the legislative reference bureau; [(33)] (32) The ombudsman; [(34)] (33) The permanent employees of the legislature, other than persons employed in clerical, secretarial, or similar positions; [(35)] (34) The administrative director of the courts; [(36)] (35) The executive director of the state ethics commission; [(37)] (36) The executive officer of the state land use commission; [(38)] (37) The executive director of the natural energy laboratory of Hawaii authority; [(39)] (38) The executive director of the Hawaii public housing authority; and [(40)] (39) The first deputy to the chairperson of the commission on water resource management; provided that this subsection shall not apply to any person who has held one of the positions listed above only on an interim or acting basis and for a period of less than one hundred eighty- one days." SECTION 7. 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 8. 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 9. 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 10. 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 under section 201B‑7;] office of tourism and destination management under subsection 201-C(c); 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 11. 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-H; (3) An allocation shall be deposited into the tourism emergency special fund, established in section [201B-10,] 201-J, 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] authority's 2020-2025 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." SECTION 12. Act 231, Session Laws of Hawaii 2005, section 2, 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 public market; (2) Accept, for consideration, input regarding the establishment of the cultural public market from the following departments or 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 utilizing 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 13. Chapter 201B, Hawaii Revised Statutes, is repealed. SECTION 14. Sections 6E-18, 23-13, 23-76, 46-11, and 171-173, Hawaii Revised Statutes, are amended by substituting the term "the office of tourism and destination management", or similar term, wherever the term "Hawaii tourism authority", or similar term, appears, as the context requires. SECTION 15. All rights, powers, functions, and duties of the Hawaii tourism authority are transferred to the department of business, economic development, and tourism. SECTION 16. All employees who occupy civil service positions and whose functions are transferred to the department of business, economic development, and tourism by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws. Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of the department of business, economic development, and tourism may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes. SECTION 17. 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. SECTION 18. 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 made applicable to the office of tourism and destination management 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 the board of directors of the Hawaii tourism authority in those rules, policies, procedures, guidelines, and other material is amended to refer to the office of tourism and destination management and the director of the department of business, economic development, and tourism, as appropriate. SECTION 19. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment, administration, and operation of the office of tourism and destination management. The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act. SECTION 20. There is appropriated out of the general revenues of the State of Hawaii the sum of $28,500,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the convention center enterprise special fund. SECTION 21. There is appropriated out of the convention center enterprise special fund the sum of $28,500,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for 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 convention center facility. The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act. SECTION 22. There is appropriated out of the general revenues of the State of Hawaii the sum of $140,000 or so much thereof as may be necessary for fiscal year 2024-2025 to fund one full-time equivalent (1.0 FTE) administrator position in the office of tourism and destination management for the day-to-day operations of the office. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act. SECTION 23. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 24. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 25. This Act shall take effect on July 1, 2024; provided that sections 19 through 21 of this Act shall take effect on July 1, 2023; provided further that changes made to section 237D-6.5, Hawaii Revised Statutes, shall not be repealed when that section is repealed and reenacted on June 30, 2023, pursuant to section 5 of Act 229, Session Laws of Hawaii 2021. INTRODUCED BY: _____________________________
4848
4949 SECTION 1. The legislature finds that the Hawaii tourism authority has failed to effectively execute its duties and functions manage the tourism marketing plan for the State.
5050
5151 In 2021, the legislature repealed the Hawaii tourism authority's exemption from the State procurement code through Act 1, Special Session Laws of Hawaii 2021. As a result, all procurements by the Hawaii tourism authority must comply with the state procurement code.
5252
5353 Due to the mismanagement by the Hawaii tourism authority, the award of a $34,000,000 contract for the marketing of Hawaii as a tourism destination to the United States major market area has been in limbo since 2021. This situation has been widely publicized and has demonstrated the Hawaii tourism authority's noncompliance with the state procurement code.
5454
5555 The legislature additionally finds that, prior to the establishment of the Hawaii tourism authority, the department of business, economic development, and tourism managed the tourism marketing contracts for the State. To re-establish public confidence in the State procurement process, the legislature finds that it is necessary and appropriate to dissolve the Hawaii tourism authority and transfer its duties and functions to the department of business, economic development, and tourism.
5656
5757 Accordingly, the purpose of this Act is to:
5858
5959 (1) Establish an office of tourism and destination management within the department of business, economic development, and tourism that encompasses regenerative tourism and best practice destination management;
6060
6161 (2) Transfer the functions, duties, appropriations, and positions of the Hawaii tourism authority to the office of tourism and destination management;
6262
6363 (3) Require the office of tourism and destination management to implement certain county destination management action plans;
6464
6565 (4) Dissolve the Hawaii tourism authority; and
6666
6767 (5) Appropriate funds.
6868
6969 SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
7070
7171 "Part . OFFICE OF TOURISM AND DESTINATION MANAGEMENT
7272
7373 §201-A Definitions. As used in this part:
7474
7575 "Administrator" means the administrator of tourism and destination management.
7676
7777 "Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or its political subdivisions.
7878
7979 "Best practice destination management" means a holistic process that ensures that tourism adds value to the economy, social fabric, and ecology of communities.
8080
8181 "Convention center facility" or "convention center" means the Hawaii Convention Center.
8282
8383 "Director" means the director of business, economic development, and tourism.
8484
8585 "Hawaii brand" means the programs that collectively differentiate the Hawaii experience from other destinations.
8686
8787 "Office" means the office of tourism and destination management established under section 201-B.
8888
8989 "Regenerative tourism" means tourism that focuses on reducing the harm associated with tourism, and restoring the natural environment from the harm already done by tourism, through collective holistic efforts to:
9090
9191 (1) Make net positive contributions;
9292
9393 (2) Create conditions that allow communities to flourish; and
9494
9595 (3) Improve destinations for current and future generations for the well-being of the environment, residents, indigenous communities, and visitors.
9696
9797 §201-B Office of tourism and destination management; establishment; responsibilities. (a) There is established within the department an office of tourism and destination management to:
9898
9999 (1) Create, design, and implement a long-range strategic plan for tourism in Hawaii;
100100
101101 (2) Grow and enhance the tourism industry in the State; provided that the office's initiatives shall follow best practice destination management practices and integrate regenerative tourism;
102102
103103 (3) Conduct strategic research through contractual services with the University of Hawaii or any qualified agency or persons that target social, economic, cultural, and environmental aspects of tourism development in the State;
104104
105105 (4) Provide technical or other assistance to agencies and private industry upon request;
106106
107107 (5) Focus on perpetuating the uniqueness of the Native Hawaiian culture and community, and their significance to the quality of the visitor experience, by ensuring that:
108108
109109 (A) The Hawaiian culture is accurately portrayed by Hawaii's visitor industry;
110110
111111 (B) Hawaiian language is supported and normalized as an official language of the State as well as the foundation of the host culture that attracts visitors to Hawaii;
112112
113113 (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
114114
115115 (D) A Native Hawaiian cultural education and training program is provided for the members of the visitor industry workforce who have direct contact with visitors; and
116116
117117 (6) Review annually the expenditure of public funds by any visitor industry organization that contracts with the office to implement tourism promotion, development, and management and make recommendations necessary to ensure the effective use of the funds for the development and management of tourism.
118118
119119 (b) There is established within the office of tourism and destination management:
120120
121121 (1) A tourism and marketing branch to carry out the duties and functions of the office relating to tourism and marketing;
122122
123123 (2) A convention center branch to manage the convention center and administer the convention center enterprise special fund; and
124124
125125 (3) A destination management branch to deliver and administer programs that support best practice destination management in the State.
126126
127127 (c) There shall be an administrator of tourism and destination management, who shall be appointed, and may be removed by the director, and who shall have knowledge, experience, and expertise in the area of accommodations, transportation, retail, entertainment, or attractions. The administrator shall be responsible for the day-to-day operations of the office. The administrator shall report to the director. The administrator shall, in the absence of the director, have all the duties and responsibilities of the director, and shall report directly to the governor. The administrator shall not be subject to chapter 76.
128128
129129 §201-C Powers and functions, generally. (a) Except as otherwise limited by this part, the office may:
130130
131131 (1) Sue and be sued;
132132
133133 (2) Make and alter bylaws for its organization and internal management;
134134
135135 (3) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;
136136
137137 (4) Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source;
138138
139139 (5) Design, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, cultural, and physical impacts of tourism on the State, Hawaii's natural environment, areas frequented by visitors, best practice destination management, and regenerative tourism;
140140
141141 (6) Have a permanent and strong focus on Hawaii brand management;
142142
143143 (7) Coordinate all agencies and engage the private sector in the development of tourism-related activities and resources;
144144
145145 (8) Work to eliminate or reduce barriers to travel by providing a positive and competitive business environment, including coordination with the department of transportation on issues affecting airlines and air route development;
146146
147147 (9) Market and promote sports-related and entertainment-related activities and events;
148148
149149 (10) Coordinate the development of new products with the counties and other persons in the public sector and private sector, including the development of sports, cultural, health and wellness, education, technology, agriculture, and environmental tourism;
150150
151151 (11) Establish:
152152
153153 (A) A public information and educational program to inform the public of tourism and tourism-related problems; and
154154
155155 (B) 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;
156156
157157 (12) Encourage and engage in the development of tourism educational, training, and career counseling programs;
158158
159159 (13) Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201-I;
160160
161161 (14) 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;
162162
163163 (15) Notwithstanding chapter 171, acquire, lease as lessee or lessor, own, rent, hold, and dispose of the convention center facility in the exercise of its powers and the performance of its duties under this part;
164164
165165 (16) Acquire by purchase, lease, or otherwise, and develop, construct, operate, own, manage, repair, reconstruct, enlarge, or otherwise effectuate, either directly or through developers, a convention center facility; and
166166
167167 (17) Adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities.
168168
169169 (b) Except as otherwise limited by this part, the office
170170
171171 may, through the director:
172172
173173 (1) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this part; provided that the office may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; provided further that the office may enter into agreements for the use of the convention center facility for a period of up to ten years;
174174
175175 (2) Represent the office in communications with the governor and the legislature;
176176
177177 (3) Provide for the appointment of an administrator, officers, agents, a sports coordinator, and employees, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if funds have been appropriated by the legislature and allotted as provided by law;
178178
179179 (4) Purchase supplies, equipment, or furniture;
180180
181181 (5) Allocate the space or spaces that are to be occupied by the office and appropriate staff;
182182
183183 (6) Engage the services of qualified persons to implement the State's strategic tourism management plan or portions thereof as determined by the office; and
184184
185185 (7) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
186186
187187 (c) The office may enter into contracts and agreements that include the following:
188188
189189 (1) Tourism promotion, development, and management;
190190
191191 (2) Product development and diversification issues focused on visitors;
192192
193193 (3) Promotion, development, and coordination of sports-related and entertainment-related activities and events;
194194
195195 (4) Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;
196196
197197 (5) Reduction of barriers to travel;
198198
199199 (6) 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;
200200
201201 (7) Tourism research, market development-related research, and statistics to:
202202
203203 (A) Measure and analyze tourism trends;
204204
205205 (B) Provide information and research to assist in the development and implementation of state tourism policy; and
206206
207207 (C) Provide tourism information on:
208208
209209 (i) Visitor arrivals, visitor characteristics, and expenditures;
210210
211211 (ii) The number of transient accommodation units available, occupancy rates, and room rates;
212212
213213 (iii) Airline-related data, including seat capacity and number of flights;
214214
215215 (iv) The economic, social, and physical impacts of tourism on the State; and
216216
217217 (v) The effects of the office's strategic tourism management plan on the measures of effectiveness developed pursuant to section 201-D; and
218218
219219 (8) Any and all other activities necessary to carry out the intent of this part.
220220
221221 (d) The office may delegate to staff the responsibility for soliciting, awarding, and executing contracts and for monitoring and facilitating any and all contracts and agreements developed in accordance with subsection (c).
222222
223223 (e) Where public disclosure of information gathered or developed by the office 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:
224224
225225 (1) Completed survey forms and questionnaire forms;
226226
227227 (2) Coding sheets; and
228228
229229 (3) Database records of the information.
230230
231231 (f) The office shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this part, and to perform other functions required or authorized by law.
232232
233233 (g) The powers and functions granted to and exercised by the office under this part are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.
234234
235235 §201-D Strategic tourism management plan; measures of effectiveness. (a) The office shall be responsible for developing a strategic tourism management plan, that promotes tourism marketing, complies with best practice destination management, and promotes regenerative tourism. The plan shall be a single, comprehensive document that shall be updated annually and include the following:
236236
237237 (1) Statewide Hawaii brand management efforts and programs;
238238
239239 (2) Targeted markets;
240240
241241 (3) Efforts to enter into Hawaii brand management projects that make effective use of cooperative programs;
242242
243243 (4) Program performance goals and targets that can be monitored as market gauges and used as attributes to evaluate the office's programs; and
244244
245245 (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 shall be implemented through county contracts and agreements with destination marketing organizations or other qualified organizations, including:
246246
247247 (A) Target markets and the results being sought;
248248
249249 (B) Key performance indicators; and
250250
251251 (C) Private sector collaborative or cooperative efforts that may be required.
252252
253253 (b) In accordance with subsection (a), the office shall develop measures of effectiveness to assess the overall benefits and effectiveness of the strategic tourism management plan and include documentation of the progress of the strategic tourism management plan toward achieving the office's strategic plan goals.
254254
255255 §201-E Destination management action plan; objectives; county destination management action plans. To meet the destination management objectives for each county, the office shall perform the actions specified in each of the following three-year plans:
256256
257257 (1) Oahu destination management action plan;
258258
259259 (2) Maui Nui destination management action plan;
260260
261261 (3) Hawaii island destination management action plan; and
262262
263263 (4) Kauai destination management action plan,
264264
265265 during the specified phases.
266266
267267 §201-F Assistance by state and county agencies; advisory group. (a) Any state or county agency may render services upon request of the office.
268268
269269 (b) The office may establish an advisory group that may meet monthly or as the office deems necessary and may include the director, director of transportation, chair of the board of land and natural resources, chairperson of the board of trustees of the office of Hawaiian affairs, executive director of the state foundation on culture and the arts, and chair of the school of travel industry management of the University of Hawaii to advise the office on matters relating to their respective departments or agency in the preparation and execution of suggested:
270270
271271 (1) Measures to respond to tourism emergencies pursuant to section 201-I;
272272
273273 (2) Programs for the management, improvement, and protection of Hawaii's natural environment and other areas frequented by visitors and residents;
274274
275275 (3) Measures to address issues affecting airlines, air routes, and barriers to travel to Hawaii;
276276
277277 (4) Programs to perpetuate the culture of Hawaii and engage local communities to sustain and preserve the Native Hawaiian culture; and
278278
279279 (5) Programs that include tourism marketing, best practice destination management, and regenerative tourism as part of an overall strategic tourism management plan.
280280
281281 §201-G Applicability of Hawaii public procurement code; convention center contractor; construction contracts. The construction contracts for the maintenance of the convention center facility by the private contractor that operates the convention center, by its direct or indirect receipt of, and its expenditure of, public funds from the department or the office, or both, shall be subject to part III of chapter 103D.
282282
283283 §201-H Convention center enterprise special fund. (a) There is established in the state treasury the convention center enterprise special fund, into which shall be deposited:
284284
285285 (1) A portion of the revenues from the transient accommodations tax, as provided by section 237D-6.5;
286286
287287 (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;
288288
289289 (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
290290
291291 (4) Appropriations by the legislature for marketing the facility pursuant to section 201-C(c)(7).
292292
293293 (b) Moneys in the convention center enterprise special fund shall be used by the office for:
294294
295295 (1) 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;
296296
297297 (2) The sale of souvenirs, logo items, or other items;
298298
299299 (3) 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
300300
301301 (4) Marketing the facility pursuant to section 201-C(c)(7).
302302
303303 (c) Moneys in the convention center enterprise special fund may be:
304304
305305 (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
306306
307307 (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.
308308
309309 All interest accruing from investment of the moneys shall be credited to the convention center enterprise special fund.
310310
311311 §201-I Tourism emergency. (a) If the director 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.
312312
313313 (b) Upon declaration by the governor that a tourism emergency exists pursuant to subsection (a), the office shall develop and implement measures to respond to the tourism emergency, including providing assistance to visitors 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 office without the governor's express approval.
314314
315315 §201-J Tourism emergency special fund. (a) There is established outside the state treasury a tourism emergency special fund to be administered by the director, 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.
316316
317317 (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-I, including providing emergency assistance to visitors during the tourism emergency.
318318
319319 (c) Use of the special fund, consistent with subsection (b), shall be provided for in articles, bylaws, resolutions, or other instruments executed by the director as administrator for the special fund.
320320
321321 §201-K Exemption 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.
322322
323323 §201-L Private attorneys. (a) The director 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 office.
324324
325325 (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.
326326
327327 §201-M Court proceedings; preferences; venue. (a) Any action or proceeding to which the office, the State, or the county may be a party, in which any question arises as to the validity of this part, 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.
328328
329329 (b) Upon application of counsel to the office, the same preference shall be granted in any action or proceeding questioning the validity of this part in which the office may be allowed to intervene.
330330
331331 (c) Any action or proceeding to which the office, 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.
332332
333333 (d) Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.
334334
335335 (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.
336336
337337 §201-N Annual report. The office shall submit a complete and detailed report of its activities, expenditures, and results, including the progress of the strategic tourism management plan, developed pursuant to section 201-D, toward achieving the office's strategic plan goals, to the governor and the legislature at least twenty days prior to the convening of each regular session. The annual report shall include the descriptions and evaluations of programs funded, any contracts and agreements entered into by the office during the calendar year, and any recommendations the office may make."
338338
339339 SECTION 3. Section 28-8.3, Hawaii Revised Statutes, is amended as follows:
340340
341341 1. By amending subsection (a) to read:
342342
343343 "(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:
344344
345345 (1) By the public utilities commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;
346346
347347 (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;
348348
349349 (3) By the legislative reference bureau;
350350
351351 (4) By any compilation commission that may be constituted from time to time;
352352
353353 (5) By the real estate commission for any action involving the real estate recovery fund;
354354
355355 (6) By the contractors license board for any action involving the contractors recovery fund;
356356
357357 (7) By the office of Hawaiian affairs;
358358
359359 (8) By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;
360360
361361 (9) As grand jury counsel;
362362
363363 (10) By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;
364364
365365 (11) By the auditor;
366366
367367 (12) By the office of ombudsman;
368368
369369 (13) By the insurance division;
370370
371371 (14) By the University of Hawaii;
372372
373373 (15) By the Kahoolawe island reserve commission;
374374
375375 (16) By the division of consumer advocacy;
376376
377377 (17) By the office of elections;
378378
379379 (18) By the campaign spending commission;
380380
381381 (19) By the [Hawaii tourism authority, as provided in section 201B-2.5;] office of tourism and destination management, as provided in section 201-L;
382382
383383 (20) By the division of financial institutions;
384384
385385 (21) By the office of information practices;
386386
387387 (22) By the school facilities authority;
388388
389389 (23) By the Mauna Kea stewardship and oversight authority; or
390390
391391 (24) 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."
392392
393393 2. By amending subsection (c) to read:
394394
395395 "(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 as provided in section 201B-2.5,] office of tourism and destination management, as provided in section 201-L, the Mauna Kea stewardship and oversight authority, the office of information practices, or as grand jury counsel, shall be a deputy attorney general."
396396
397397 SECTION 4. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
398398
399399 "(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:
400400
401401 (1) Special out-of-school time instructional program fund under section 302A-1310;
402402
403403 (2) School cafeteria special funds of the department of education;
404404
405405 (3) Special funds of the University of Hawaii;
406406
407407 (4) Convention center enterprise special fund under section [201B-8;] 201-H;
408408
409409 (5) Special funds established by section 206E-6;
410410
411411 (6) Aloha Tower fund created by section 206J-17;
412412
413413 (7) Funds of the employees' retirement system created by section 88-109;
414414
415415 (8) Hawaii hurricane relief fund established under chapter 431P;
416416
417417 (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;
418418
419419 (10) Universal service fund established under section 269-42;
420420
421421 (11) Emergency and budget reserve fund under section 328L-3;
422422
423423 (12) Public schools special fees and charges fund under section 302A-1130;
424424
425425 (13) Sport fish special fund under section 187A-9.5;
426426
427427 (14) Neurotrauma special fund under section 321H-4;
428428
429429 (15) Glass advance disposal fee established by section 342G-82;
430430
431431 (16) Center for nursing special fund under section 304A-2163;
432432
433433 (17) Passenger facility charge special fund established by section 261-5.5;
434434
435435 (18) Solicitation of funds for charitable purposes special fund established by section 467B-15;
436436
437437 (19) Land conservation fund established by section 173A-5;
438438
439439 (20) Court interpreting services revolving fund under section 607-1.5;
440440
441441 (21) Trauma system special fund under section 321-22.5;
442442
443443 (22) Hawaii cancer research special fund;
444444
445445 (23) Community health centers special fund;
446446
447447 (24) Emergency medical services special fund;
448448
449449 (25) Rental motor vehicle customer facility charge special fund established under section 261-5.6;
450450
451451 (26) Shared services technology special fund under section 27-43;
452452
453453 (27) Automated victim information and notification system special fund established under section 353-136;
454454
455455 (28) Deposit beverage container deposit special fund under section 342G-104;
456456
457457 (29) Hospital sustainability program special fund under section 346G-4;
458458
459459 (30) Nursing facility sustainability program special fund under section 346F-4;
460460
461461 (31) Hawaii 3R's school improvement fund under section 302A-1502.4;
462462
463463 (32) After-school plus program revolving fund under section 302A-1149.5;
464464
465465 (33) Civil monetary penalty special fund under section 321-30.2; and
466466
467467 [[](34)[]]Stadium development special fund under section 109-3.5,
468468
469469 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."
470470
471471 SECTION 5. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
472472
473473 "(a) Each special fund, except the:
474474
475475 (1) Special out-of-school time instructional program fund under section 302A-1310;
476476
477477 (2) School cafeteria special funds of the department of education;
478478
479479 (3) Special funds of the University of Hawaii;
480480
481481 (4) Special funds established by section 206E-6;
482482
483483 (5) Aloha Tower fund created by section 206J-17;
484484
485485 (6) Funds of the employees' retirement system created by section 88-109;
486486
487487 (7) Hawaii hurricane relief fund established under chapter 431P;
488488
489489 (8) Convention center enterprise special fund established under section [201B-8;] 201-H;
490490
491491 (9) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;
492492
493493 (10) Universal service fund established under section 269-42;
494494
495495 (11) Emergency and budget reserve fund under section 328L-3;
496496
497497 (12) Public schools special fees and charges fund under section 302A-1130;
498498
499499 (13) Sport fish special fund under section 187A-9.5;
500500
501501 (14) Neurotrauma special fund under section 321H-4;
502502
503503 (15) Center for nursing special fund under section 304A-2163;
504504
505505 (16) Passenger facility charge special fund established by section 261-5.5;
506506
507507 (17) Court interpreting services revolving fund under section 607-1.5;
508508
509509 (18) Trauma system special fund under section 321-22.5;
510510
511511 (19) Hawaii cancer research special fund;
512512
513513 (20) Community health centers special fund;
514514
515515 (21) Emergency medical services special fund;
516516
517517 (22) Rental motor vehicle customer facility charge special fund established under section 261-5.6;
518518
519519 (23) Shared services technology special fund under section 27-43;
520520
521521 (24) Nursing facility sustainability program special fund established pursuant to section 346F-4;
522522
523523 (25) Automated victim information and notification system special fund established under section 353-136;
524524
525525 (26) Hospital sustainability program special fund under section 346G-4;
526526
527527 (27) Civil monetary penalty special fund under section 321-30.2; and
528528
529529 [[](28)[]]Stadium development special fund under section 109-3.5,
530530
531531 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."
532532
533533 SECTION 6. Section 84-18, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
534534
535535 "(e) Subject to the restrictions imposed in subsections (a) through (d), the following individuals shall not represent any person or business for a fee or other consideration regarding any legislative action or administrative action, as defined in section 97-1, for twelve months after termination from their respective positions:
536536
537537 (1) The governor;
538538
539539 (2) The lieutenant governor;
540540
541541 (3) The administrative director of the State;
542542
543543 (4) The attorney general;
544544
545545 (5) The comptroller;
546546
547547 (6) The chairperson of the board of agriculture;
548548
549549 (7) The director of finance;
550550
551551 (8) The director of business, economic development, and tourism;
552552
553553 (9) The director of commerce and consumer affairs;
554554
555555 (10) The adjutant general;
556556
557557 (11) The superintendent of education;
558558
559559 (12) The chairperson of the Hawaiian homes commission;
560560
561561 (13) The director of health;
562562
563563 (14) The director of human resources development;
564564
565565 (15) The director of human services;
566566
567567 (16) The director of labor and industrial relations;
568568
569569 (17) The chairperson of the board of land and natural resources;
570570
571571 (18) The director of public safety;
572572
573573 (19) The director of taxation;
574574
575575 (20) The director of transportation;
576576
577577 (21) The president of the University of Hawaii;
578578
579579 (22) The executive administrator of the board of regents of the University of Hawaii;
580580
581581 (23) The administrator of the office of Hawaiian affairs;
582582
583583 (24) The chief information officer;
584584
585585 (25) The executive director of the agribusiness development corporation;
586586
587587 (26) The executive director of the campaign spending commission;
588588
589589 (27) The executive director of the Hawaii community development authority;
590590
591591 (28) The executive director of the Hawaii housing finance and development corporation;
592592
593593 [(29) The president and chief executive officer of the Hawaii tourism authority;
594594
595595 (30)] (29) The executive officer of the public utilities commission;
596596
597597 [(31)] (30) The state auditor;
598598
599599 [(32)] (31) The director of the legislative reference bureau;
600600
601601 [(33)] (32) The ombudsman;
602602
603603 [(34)] (33) The permanent employees of the legislature, other than persons employed in clerical, secretarial, or similar positions;
604604
605605 [(35)] (34) The administrative director of the courts;
606606
607607 [(36)] (35) The executive director of the state ethics commission;
608608
609609 [(37)] (36) The executive officer of the state land use commission;
610610
611611 [(38)] (37) The executive director of the natural energy laboratory of Hawaii authority;
612612
613613 [(39)] (38) The executive director of the Hawaii public housing authority; and
614614
615615 [(40)] (39) The first deputy to the chairperson of the commission on water resource management;
616616
617617 provided that this subsection shall not apply to any person who has held one of the positions listed above only on an interim or acting basis and for a period of less than one hundred eighty- one days."
618618
619619 SECTION 7. Section 88-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
620620
621621 "(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:
622622
623623 (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);
624624
625625 (2) As a juror or precinct official;
626626
627627 (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:
628628
629629 (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
630630
631631 (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;
632632
633633 (4) In a position identified by the appropriate jurisdiction as a labor shortage or difficult-to-fill position; provided that:
634634
635635 (A) The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;
636636
637637 (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
638638
639639 (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
640640
641641 (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:
642642
643643 (A) The retirant was not employed by the State or a county during the twelve calendar months prior to the first day of reemployment;
644644
645645 (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
646646
647647 (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."
648648
649649 SECTION 8. Section 206E-34, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
650650
651651 "(c) The Hawaii community development authority shall:
652652
653653 (1) Designate and develop the state-owned land for the cultural public market;
654654
655655 (2) Accept, for consideration, input regarding the establishment of the cultural public market from the following departments [and agencies]:
656656
657657 (A) The department of agriculture;
658658
659659 (B) The department of business, economic development, and tourism;
660660
661661 (C) The department of land and natural resources; and
662662
663663 (D) The department of labor and industrial relations; [and
664664
665665 (E) The Hawaii tourism authority;]
666666
667667 (3) Consider and determine the propriety of using public-private partnerships in the development and operation of the cultural public market;
668668
669669 (4) Develop, distribute, and accept requests for proposals from private entities for plans to develop and operate the cultural public market; and
670670
671671 (5) Ensure that the Hawaiian culture is the featured culture in the cultural public market."
672672
673673 SECTION 9. Section 225P-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
674674
675675 "(c) The commission shall include the following members:
676676
677677 (1) The chairs of the standing committees of the legislature with subject matter jurisdiction encompassing environmental protection and land use;
678678
679679 (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;
680680
681681 (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;
682682
683683 (4) The director of business, economic development, and tourism or the director's designee;
684684
685685 [(5) The chairperson of the board of directors of the Hawaii tourism authority or the chairperson's designee;
686686
687687 (6)] (5) The chairperson of the board of agriculture or the chairperson's designee;
688688
689689 [(7)] (6) The chief executive officer of the office of Hawaiian affairs or the officer's designee;
690690
691691 [(8)] (7) The chairperson of the Hawaiian homes commission or the chairperson's designee;
692692
693693 [(9)] (8) The director of transportation or the director's designee;
694694
695695 [(10)] (9) The director of health or the director's designee;
696696
697697 [(11)] (10) The adjutant general or the adjutant general's designee;
698698
699699 [(12)] (11) The chairperson of the board of education or the chairperson's designee;
700700
701701 [(13)] (12) The directors of each of the county planning departments, or the directors' designees; and
702702
703703 [(14)] (13) The manager of the coastal zone management program."
704704
705705 SECTION 10. Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:
706706
707707 "§237-24.75 Additional exemptions. In addition to the amounts exempt under section 237-24, this chapter shall not apply to:
708708
709709 (1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII;
710710
711711 (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 under section 201B‑7;] office of tourism and destination management under subsection 201-C(c); and
712712
713713 (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:
714714
715715 (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
716716
717717 (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.
718718
719719 As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1."
720720
721721 SECTION 11. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
722722
723723 "(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:
724724
725725 (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;
726726
727727 (2) $11,000,000 shall be allocated to the convention center enterprise special fund established under section [201B-8;] 201-H;
728728
729729 (3) An allocation shall be deposited into the tourism emergency special fund, established in section [201B-10,] 201-J, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund; and
730730
731731 (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] authority's 2020-2025 strategic plan for:
732732
733733 (A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
734734
735735 (B) Planning, construction, and repair of facilities; and
736736
737737 (C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.
738738
739739 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."
740740
741741 SECTION 12. Act 231, Session Laws of Hawaii 2005, section 2, is amended by amending subsection (c) to read as follows:
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743743 "(c) The Hawaii community development authority shall:
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745745 (1) Designate and develop the state-owned land for the public market;
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747747 (2) Accept, for consideration, input regarding the establishment of the cultural public market from the following departments or agencies:
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749749 (A) The department of agriculture;
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751751 (B) The department of business, economic development, and tourism;
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753753 (C) The department of land and natural resources; and
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755755 (D) The department of labor and industrial relations; [and
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757757 (E) The Hawaii tourism authority;]
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759759 (3) Consider and determine the propriety of utilizing public-private partnerships in the development and operation of the cultural public market;
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761761 (4) Develop, distribute, and accept requests for proposals from private entities for plans to develop and operate the cultural public market; and
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763763 (5) Ensure that the Hawaiian culture is the featured culture in the cultural public market."
764764
765765 SECTION 13. Chapter 201B, Hawaii Revised Statutes, is repealed.
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767767 SECTION 14. Sections 6E-18, 23-13, 23-76, 46-11, and 171-173, Hawaii Revised Statutes, are amended by substituting the term "the office of tourism and destination management", or similar term, wherever the term "Hawaii tourism authority", or similar term, appears, as the context requires.
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769769 SECTION 15. All rights, powers, functions, and duties of the Hawaii tourism authority are transferred to the department of business, economic development, and tourism.
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771771 SECTION 16. All employees who occupy civil service positions and whose functions are transferred to the department of business, economic development, and tourism by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
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773773 Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The director of the department of business, economic development, and tourism may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.
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775775 SECTION 17. 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.
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777777 SECTION 18. 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 made applicable to the office of tourism and destination management 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.
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779779 In the interim, every reference to the Hawaii tourism authority or the board of directors of the Hawaii tourism authority in those rules, policies, procedures, guidelines, and other material is amended to refer to the office of tourism and destination management and the director of the department of business, economic development, and tourism, as appropriate.
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781781 SECTION 19. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment, administration, and operation of the office of tourism and destination management.
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783783 The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
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785785 SECTION 20. There is appropriated out of the general revenues of the State of Hawaii the sum of $28,500,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the convention center enterprise special fund.
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787787 SECTION 21. There is appropriated out of the convention center enterprise special fund the sum of $28,500,000 or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for 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 convention center facility.
788788
789789 The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
790790
791791 SECTION 22. There is appropriated out of the general revenues of the State of Hawaii the sum of $140,000 or so much thereof as may be necessary for fiscal year 2024-2025 to fund one full-time equivalent (1.0 FTE) administrator position in the office of tourism and destination management for the day-to-day operations of the office.
792792
793793 The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
794794
795795 SECTION 23. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
796796
797797 SECTION 24. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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799799 SECTION 25. This Act shall take effect on July 1, 2024; provided that sections 19 through 21 of this Act shall take effect on July 1, 2023; provided further that changes made to section 237D-6.5, Hawaii Revised Statutes, shall not be repealed when that section is repealed and reenacted on June 30, 2023, pursuant to section 5 of Act 229, Session Laws of Hawaii 2021.
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803803 INTRODUCED BY: _____________________________
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805805 INTRODUCED BY:
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807807 _____________________________
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833833 Report Title: Hawaii Tourism Authority; Board of Directors; Repeal; Department of Business, Economic Development, and Tourism; Office of Tourism and Destination Management; Establishment; Regenerative Tourism; Destination Management Action Plans; Position; Convention Center Enterprise Special Fund; Appropriation Description: Establishes an Office of Tourism and Destination Management within the Department of Business, Economic Development, and Tourism that encompasses regenerative tourism and best practice destination management. Transfers the functions, duties, appropriations, and positions of the Hawaii Tourism Authority to the Office of Tourism and Destination Management. Requires the Office of Tourism and Destination Management to implement certain county destination management action plans. Dissolves the Hawaii Tourism Authority and the Board of Directors for the Hawaii Tourism Authority. Appropriates funds. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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839839 Report Title:
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841841 Hawaii Tourism Authority; Board of Directors; Repeal; Department of Business, Economic Development, and Tourism; Office of Tourism and Destination Management; Establishment; Regenerative Tourism; Destination Management Action Plans; Position; Convention Center Enterprise Special Fund; Appropriation
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845845 Description:
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847847 Establishes an Office of Tourism and Destination Management within the Department of Business, Economic Development, and Tourism that encompasses regenerative tourism and best practice destination management. Transfers the functions, duties, appropriations, and positions of the Hawaii Tourism Authority to the Office of Tourism and Destination Management. Requires the Office of Tourism and Destination Management to implement certain county destination management action plans. Dissolves the Hawaii Tourism Authority and the Board of Directors for the Hawaii Tourism Authority. Appropriates funds.
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855855 The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.