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Decisions are being made about your business, without your input. Legislators make laws and regulations affecting Hawaii's and businesses often with limited knowledge of the hotel industry, the people it serves, or the people it employs. The HHLA is fully committed in this area, and its firm belief that, first and foremost, effective advocacy on the local and national level to our success. We recognize the need for better communication with government to help solve problems in our (tourism) industry, and we recognize the membership can change the political future of the hotel industry by spekaing with a united voice. We support these efforts via HotelPAC, our non-profit, bi-partisan political action committee, which helps elect qualified individuals who recognize the importance of the hotel industry.
Click here for: 2010 LEGISLATIVE TRACKER
Click here for : 2010 HHLA POSITION STATEMENTS
2010 FINAL LEGISLATIVE REPORT
The 2010 Legislative session largely focused on balancing the State Budget. The various proposals to generate money we opposed did not pass. These included measures to eliminate or cap the Transient Accommodations Tax (“TAT”) revenues going to the counties and to impose a 1 or ½ % General Excise Tax (”GET”) on money passed between hotel owners and operators. Since the TAT was increased in 2009 with an additional percentage point becoming effective on July 1, 2010, TAT increases were not proposed.
The Chairs of the two money committees, Senator Donna Kim and Representative Marcus Oshiro led the resistance to broad based tax increases.
The following is a list of some of the bills that passed the legislature that impact tourism or business.
BILLS HHLA SUPPORTED:
HB 2619 HD2 RELATING TO EMPLOYMENT SECURITY - Sets, for calendar years 2010 and 2011, the wage base at 90% of the average annual wage. Sets, for calendar year 2010, the employer contribution rate at schedule D and for calendar year 2011, the employer contribution rate at schedule F. Retains the maximum weekly benefit rate at 75% of the average weekly wage until December 31, 2012. Returns the maximum weekly benefit rate to 70% of the average weekly wage on January 1, 2013. Authorizes special assessments upon employers to pay the principal and interest costs on loans received from the U.S. Secretary of Labor provided that the director of Labor and Industrial Relations develops a fair and equitable manner in which these payments are made. Establishes for recalculation of the adequate reserve fund beginning in 2011. This bill passed and was signed by the Governor early in the session. This bill provides 2 years of relief from large increases in the Unemployment Insurance Tax.
SB 2187 SD1 HD2 CD1 RELATING TO THE HAWAII TOURISM AUTHORITY - Authorizes the Hawaii tourism authority to maintain the confidentiality of competitively sensitive information. Extends certain autonomy provisions of Act 58, SLH 2004, from June 20, 2010, to June 30, 2015.
SB 2643 SD1 HD1 CD1 RELATING TO GENERAL EXCISE TAX - Extends the general excise tax exemptions for condominium common expenses paid by managers, submanagers, and suboperators, and for hotel employee expenses paid by hotel operators and timeshare projects through December 31, 2013; clarifies that the maximum allowable tax exemption per calendar year is $400,000.
HB 1808 HD3 SD1 CD1 RELATING TO COASTAL AREAS - Requires the Department of Land and Natural Resources to maintain beach transit corridors by prohibiting landowners' human-induced vegetation that interferes with access within the corridor. Establishes access within the corridors as a policy of the Coastal Zone Management Program. We opposed the original language in this bill but agreed to the final language.
SB 2607 SD 2 HD1 CD1 RELATING TO ACTIVITY DESKS - Establishes record keeping and trust account requirements for client trust accounts held by activity desks. Clarifies that activity desks shall include registration numbers on all advertising materials. Requires an activity desk to obtain full payment for activities prior to or at the time reservations are made, subject to certain exceptions. Increases required amount of bond or letter of credit to $250,000.
BILLS HHLA DID NOT SUPPORT:
HB 2421HD2 SD2 CD1 RELATING TO GOVERNMENT - Establishes various initiatives to promote economic development for local food and energy businesses, ensures Hawaii is energy and food self-sufficient and sustainable to the maximum extent feasible, and helps Hawaii's natural resources and humankind adapt and be resilient to the inevitable challenges brought on by climate change. Increases and changes the name of the environmental response tax, and sunsets the tax on June 30, 2015.
HB 2289 HD2 SD1 CD1 RELATING TO GIFT CERTIFICATES - Extends the minimum expiration period for gift certificates from two to five years except for paper gift certificates; Allows limited issuance or activation fees to be imposed; Amends the definition of "gift certificate;" Defines "service fee" to exclude activation or issuance fees.
SB 2883 SD1 HD2 CD1 RELATING TO EMPLOYMENT PRACTICES - Makes it an unlawful practice for any employer or labor organization to bar or discharge from employment, withhold pay from, or demote an employee because the employee legitimately uses accrued and available sick leave. Limited to employers with one hundred or more employees and a collective bargaining agreement. Exempts cases where an employee is unable to fulfill essential job functions.
The Legislature was able to present a balanced budget without a broad based tax increase. Unfortunately, the State’s fundamental problem remains - the Hawaii economy and tax base cannot afford the current cost of government. This issue will once again be addressed in the next legislative session with tax increases juxtaposed against reducing the cost of government.
If you have any questions on these measures or others from the 2010 Legislative session, please feel free to contact Murray Towill at (808) 923-0407.
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