Bill Text: HI SB2426 | 2014 | Regular Session | Amended

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Bill Title: Hawaii Tourism Authority; Marketing Plan; Annual Report

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Introduced - Dead) 2014-02-12 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2426 Detail]

Download: Hawaii-2014-SB2426-Amended.html

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THE SENATE	S.B. NO.	2426
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to the hawaii tourism authority.

 

 

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

 

     SECTION 1.  Section 201B-3, Hawaii Revised Statutes, is amended to read as follows:

     "§201B-3  Powers [and duties.], generally.  (a)  Except as otherwise limited by this chapter, the authority may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at pleasure;

     (3)  Through its president and chief executive officer, make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years, subject to the availability of funds; and provided further that the authority may enter into agreements for the use of the convention center facility for a period of up to ten years;

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Unless otherwise provided in this chapter, adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;

     (6)  Through its president and chief executive officer, represent the authority in communications with the governor and the legislature;

     (7)  Through its president and chief executive officer, provide for the appointment of officers, agents, a sports coordinator, and employees, subject to the approval of the board, prescribing their duties and qualifications, and fixing their salaries, without regard to chapters 76 and 78, if there is no anticipated revenue shortfall in the tourism special fund and funds have been appropriated by the legislature and allotted as provided by law;

     (8)  Through its president and chief executive officer, purchase supplies, equipment, or furniture;

     (9)  Through its president and chief executive officer, allocate the space or spaces that are to be occupied by the authority and appropriate staff;

    (10)  Through its president and chief executive officer, engage the services of qualified persons to implement the State's tourism marketing plan or portions thereof as determined by the authority;

    (11)  Through its president and chief executive officer, engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

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

    (13)  Contract for or accept revenues, compensation, proceeds, and gifts or grants in any form from any public agency or any other source[, including any revenues or proceeds arising from the operation or use of the convention center];

    (14)  Develop, coordinate, and implement state policies and directions for tourism and related activities taking into account the economic, social, and physical impacts of tourism on the State [and its natural resources infrastructure; provided that the authority shall support the efforts of other state and county departments or agencies to manage, improve, and protect], Hawaii's natural environment, and areas frequented by visitors;

    (15)  Have a permanent, strong focus on marketing [and], promotion[;], and brand management;

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

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

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

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

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

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

    (22)  Encourage the development of tourism educational, training, and career counseling programs;

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

    (24)  Develop and implement emergency measures to respond to any adverse effects on the tourism industry, pursuant to section 201B-9;

    (25)  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;

    (26)  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 chapter; and

    (27)  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.

     [(b)  The authority shall be responsible for:

     (1)  Promoting, marketing, and developing the tourism industry in the State;

     (2)  Arranging for the conduct of research through contractual services with the University of Hawaii or any agency or other qualified persons concerning social, economic, and environmental aspects of tourism development in the State; provided that, where public disclosure of information gathered by the authority may place businesses at a competitive disadvantage and impair or frustrate the authority's ability to obtain information for a legitimate government function, the authority may withhold from public disclosure competitively sensitive information, including:

         (A)  Completed survey and questionnaire forms;

         (B)  Coding sheets; and

         (C)  Database records of the information;

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

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

     (5)  Reviewing annually the expenditure of public funds by any visitor industry organization with which the authority contracts to perform tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of tourism.  The authority shall also prepare annually a report of expenditures, including descriptions and evaluations of programs funded, together with any recommendations the authority may make and shall submit the report to the governor and the legislature as part of the annual report required under section 201B-16.

     (c)] (b)  The authority shall do any and all things necessary to carry out its purposes, to exercise the powers and responsibilities given in this chapter, and to perform other functions required or authorized by law."

     SECTION 2.  Section 201B-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The authority shall be responsible for developing a tourism marketing plan as a single comprehensive document that shall be updated every year and includes the following:

     (1)  Statewide promotional efforts and programs;

     (2)  Targeted markets;

     (3)  Efforts to enter into brand marketing and management projects that make effective use of cooperative [advertising] programs;

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

     (5)  [Coordination of marketing plans of all destination marketing organizations receiving state funding prior to finalization of the authority's marketing plan.] The authority's guidance and direction for the development and coordination of promotional and marketing programs that build and promote the Hawaii brand, which are implemented through contracts and agreements with destination marketing organizations or other qualified organizations, including:

         (A)  Target markets and the results being sought;

         (B)  Key performance indicators; and

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

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

     SECTION 3.  Section 201B-7, Hawaii Revised Statutes, is amended to read as follows:

     "§201B-7  Tourism-related activities.  (a)  The authority may enter into contracts and agreements that include the following:

     (1)  Tourism promotion, marketing, and development;

     (2)  Market development-related research;

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

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

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

     (6)  Reduction of barriers to travel;

     (7)  Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2003, and thereafter, the contract for management of the convention center facility shall include marketing for all uses of the facility;

     (8)  Tourism research and statistics to:

         (A)  Measure and analyze tourism trends;

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

         (C)  Provide tourism information on:

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

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

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

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

              (v)  The effects of the marketing programs of the authority on the measures of effectiveness developed pursuant to section 201B-6(b); and

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

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

     (b)  The authority shall be responsible for:

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

     (2)  Promoting, marketing, and developing the tourism industry in the State;

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

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

     (5)  Reviewing annually the expenditure of public funds by any visitor industry organization with which the authority contracts to perform tourism promotion, marketing, and development and making recommendations necessary to ensure the effective use of the funds for the development of tourism.

     [(b)] (c)  The authority may delegate to staff the responsibility for soliciting, awarding, and executing contracts, and monitoring and facilitating any and all functions developed in accordance with [subsection (a).] this section.

     (d)  Where public disclosure of information gathered or developed by the authority may place businesses or the state tourism economy at a competitive disadvantage and impair or frustrate the authority's ability to obtain or utilize information for a legitimate government function, the authority may withhold from public disclosure competitively sensitive information, including:

     (1)  Information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interests of the enterprise; or

     (2)  Information that is necessary to protect Hawaii's competitive advantage as a visitor destination; provided that information relating to marketing plans and strategies may be disclosed after the execution of the marketing plans and strategies."

     SECTION 4.  Section 201B-16, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§201B-16[]]  Annual report.  The authority shall submit a complete and detailed report of its activities, including but not limited to descriptions and evaluations of programs funded, expenditures, [and] results of the progress of its marketing plan toward achieving the authority's strategic plan goals, and any recommendations the authority may make to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

     SECTION 5.  Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Revenues collected under this chapter shall be distributed as follows, with the excess revenues to be deposited into the general fund:

     (1)  $33,000,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;

     (2)  $82,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:

         (A)  Beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from the tourism special fund for development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii;

         (B)  Of the $82,000,000 allocated:

              (i)  $1,000,000 shall be allocated for the operation of a Hawaiian center and the museum of Hawaiian music and dance at the Hawaii convention center; and

             (ii)  0.5 per cent of the $82,000,000 shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget[, in accordance with the Hawaii tourism strategic plan 2005-2015]; and

         (C)  Of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds shall be deposited into the tourism emergency trust fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency trust fund;

     (3)  $93,000,000 shall be allocated as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent; provided that commencing with fiscal year 2018-2019, a sum that represents the difference between a county public employer's annual required contribution for the separate trust fund established under section 87A-42 and the amount of the county public employer's contributions into that trust fund shall be retained by the state director of finance and deposited to the credit of the county public employer's annual required contribution into that trust fund in each fiscal year, as provided in section 87A-42, if the respective county fails to remit the total amount of the county's required annual contributions, as required under section 87A-43; and

     (4)  Of the excess revenues deposited into the general fund pursuant to this subsection, $3,000,000 shall be allocated subject to the mutual agreement of the board of land and natural resources and the board of directors of the Hawaii tourism authority in accordance with the Hawaii tourism authority strategic plan for:

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

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

         (C)  Operation and maintenance costs of public lands 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.

     As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

 

 

Report Title:

Hawaii Tourism Authority; Marketing Plan; Annual Report

 

Description:

Clarifies the Hawaii tourism authority's powers.  Requires the Hawaii tourism authority's tourism marketing plan to be a single, comprehensive document that includes certain guidance to contracted organizations.  Requires the Hawaii tourism authority to submit a complete and detailed report of the results of the progress of its marketing plan toward achieving the authority's strategic plan goals, any recommendations, and descriptions and evaluations of programs funded as part of its annual report to the governor and legislature.  Permits the authority to withhold from public disclosure competitively sensitive information under certain circumstances.  Makes housekeeping amendments throughout chapter 201B, Hawaii Revised Statutes and section 237D-6.5, Hawaii Revised Statutes.  (SD1)

 

 

 

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