Bill on transparency at tourism agency is killed

Legislative measures to increase accountability and transparency at the Hawaii Tourism Authority are dead this session, but lawmakers have attempted an end run by asking the state auditor to deliver the agency’s 2018 management audit by the start of next session.

A transparency bill, which was introduced by state Sen. Glenn Wakai (D, Kalihi-Salt Lake), originally was an attempt to end a 2010 law allowing HTA to discuss “competitively sensitive” information behind closed doors. It would have mandated that HTA provide un-redacted budgets to certain lawmakers. It would also have set a time frame of 90 days to fill HTA board appointments.

The proposed changes addressed complaints from visitor industry officials and lawmakers this year about HTA’s disclosure policies and its board’s reliance on lengthy closed-door executive sessions. The publicly funded agency gets $82 million in transient accommodation taxes for marketing and operations, and another $26.5 million for the Hawai‘i Convention Center. However, HTA took weeks to deliver un-redacted budgets to state lawmakers.

Wakai, chairman of the Senate Committee on Economic Development, Tourism, and Technology early in the session dropped his proposal prohibiting the HTA from meeting in secret to discuss proprietary information. A weakened version of the bill drew visitor industry support from the Hawaii Lodging &Tourism Association, Marriott Resorts Hawaii, Island Air and Hilton Hawaii.

The bill made it through five legislative committees and the entire Senate without a no vote, but died Friday because it was not scheduled by the House Committee on Finance, whose chairwoman is Rep. Sylvia Luke.

State Rep. Richard Onishi (D, Hilo-Keaau-Kurtistown-­Volcano), chairman of the House Committee on Tourism, said a resolution to conduct a HTA management audit also has stopped advancing.

HTA President and CEO George Szigeti said in a statement, “In regards to the resolution introduced by Sen. Wakai about the audit of HTA, we appreciate the decision of Sen. Wakai and Rep. Onishi to let the State Auditor proceed with their scheduled audit in 2018 that will address HTA’s accountability to the Legislature and the public.”

But Onishi and Wakai said Friday they hope state Auditor Leslie H. Kondo would start the statutorily required HTA management audit this year and issue results in January instead of December 2018.

“If we are able to accommodate the request, we’ll certainly consider it,” Kondo said. “My hope is that we can provide them with meaningful information in a timeline that is helpful to them and to HTA.”

If lawmakers get the audit in January, Wakai said they will review it promptly.

Onishi said positive changes resulted from discussions this session even if measures stalled. “We have achieved greater clarity on how HTA needs to provide transparency, not only to the Legislature, but to the public,” he said.

Onishi said HTA made strides this session by adopting a new policy requiring board approval for expenditures of more than $250,000.

Progress also was made last week when Gov. David Ige advanced two HTA board nominees, Onishi said. If confirmed by the Senate on Wednesday, they would replace board members whose terms expired in 2016. “I guess the governor kind of got the message. There’s finally some action,” Onishi said.

Ige selected Sherry Menor-McNamara, president and CEO of the Chamber of Commerce Hawaii, from an April 6, 2016, Senate list to replace Lorrie Stone. Ige submitted Kelly Sanders, area managing director, Marriott Hotels and Resorts Waikiki, as his pick to replace an at-large seat held by David Rae.

Jack Corteway, whose term also expired in 2016, will hold over until at least the next legislative session.