Gov. Josh Green asked for courtesy resignations from the entire Hawai‘i Tourism Authority board following its first meeting as an advisory board Thursday — leaving the agency to process through its biggest leadership shake-up since it was created by the Legislature in 1998.
The governor’s office said in an email Thursday that he had “formally asked for courtesy resignations from each member of the HTA board of directors.”
Green does not have the authority to make the 12-member HTA board comply with his request. However, his stance is related to his May 29 signing of Senate Bill 1571, now Act 132, which downgrades the HTA board to an advisory role and expands oversight of the agency by the state Department of Business, Economic Development and Tourism.
“Given the board’s new advisory role, the governor’s previously stated goal is to reset the board and make appointments that align with both the new mission and the existing processes that govern all boards and commission appointments,” the email said. “Advisory board members appointed by the governor for HTA do require advice and consent from the Senate. Appointments by the Speaker of the House and Senate President do not.”
It’s too early to say if the entire board will comply with Green’s request. However, it was clear at Thursday’s monthly board meeting that many HTA board members viewed it as their swan song. Members were draped in lei and an ukulele performer kicked off the meeting with soothing Hawaiian tunes. Despite the niceties, the meeting included bouts of public infighting between board members.
HTA board Chair Todd Apo told the Honolulu Star-Advertiser Friday that, “I think the new law has placed the responsibility at HTA in the governor’s office, and so certainly I respect his request for resignations to be able to reset the board to help set the direction for HTA. As a relatively new board member that has just gotten to start seeing some of the issues that have existed for a while, we have started to try to address them. At this point, it’s up to the next board membership to continue that effort on and bring HTA back to where it needs to be for our island economy and community.”
Rep. Adrian Tam (D, Waikiki), chair of the House Committee on Tourism, told the Star-Advertiser on Friday that he thinks Green’s request for resignations was the right move.
“Even at yesterday’s HTA board meeting, there was still a lot of confusion, communication issues and more sadly, there was a lot of contention,” Tam said. “There was still a lot of infighting. There continues to be bigger issues with the audit reports, the unpaid interest (to the Hawai‘i Visitors and Convention Bureau), the ethics violations, and now there’s a lawsuit.”
In the past several months, HTA has undergone dramatic leadership shake-ups as it has struggled to address significant staffing shortages and problems from allegations of a toxic work environment to inappropriate freebies, procurement violations and late payments to contractors. Named and unnamed HTA officials have even been sued by Isaac Choy, HTA vice president of finance and acting chief administrative officer, who was put on unpaid leave May 9 at the direction of the state attorney general and the Department of Human Resources amid allegations he made racist and sexist remarks on the job.
Some of these issues were brought up at Thursday’s board meeting, which also included a closed-door executive session related to personnel.
Thursday’s board meeting followed a tourism informational briefing Monday at the Capitol called by Tam and Sen. Lynn DeCoite (D, East Maui-Upcountry-Molokai-Lanai-Kahoolawe), chair of the Senate Economic Development and Tourism Committee. During the briefing, lawmakers expressed frustration as they interrogated some members of HTA’s staff, board and contractors.
Caroline Anderson, who was named HTA interim president and CEO in March, and Apo, who became HTA board chair the same month, could not immediately answer all of the lawmakers’ concerns, given that they inherited many of the agency’s current issues.
During the briefing, DeCoite noted that HTA had procurement violations and that DBEDT did not, and asked DBEDT Director James Kunane Tokioka’s opinion about putting HTA completely under DBEDT.
Tokioka said, “I won’t sit here advocating for that, but what I will sit here and advocate for is to do what 1571 mandated and to make sure that oversight with HTA with Caroline, or whoever is the president and CEO, is done.”
He added that, “Some of the mistakes I made as DBEDT director before 1571, I’m not going to make them again, which is going to get approval on things that I did not need to,” he said. “I think what you did with 1571 was because of the frustrations of the trust that was lacking … the things that have happened, many of them that you were talking about today. I’m going to do my best not to let you down because I understand that the Legislature is the bank.”
Tokioka, Tam and DeCoite met with HTA staff on Wednesday at their Hawai‘i Convention Center offices. During the visit, which was a follow-up to Monday’s briefing, they conveyed their appreciation for staff and highlighted that recent changes bring an opportunity for a fresh start.
However, Tam said state lawmakers do plan to continue pressing HTA for answers and that it will be incumbent on Anderson, her staff and the new HTA board to work on adopting “preventative policies to make sure that these things never happen again. I’m not satisfied that this has happened to the extent needed.”
Apo indicated at the briefing that the search for the next HTA president and CEO is progressing again, and that the board hoped to have a nominee to send to Green in the next four months. Tokioka said that as many as 100 candidates had previously applied before the search was paused to amend compensation, benefits and the job description.
Some members of the HTA board expressed concern Thursday that changing out the entire board could set the hiring process back as HTA board member Mike White currently heads the selection process through a permitted interaction group.
Tam said, “I don’t think it would be helpful for a board heading out to find any CEO and president for the new board. The new board needs to understand at minimum what’s been happening at HTA and the problems, to look at the audits that have come down the line and just come with a fresh perspective and discipline to ensure that infighting doesn’t leak into the staff and the governing of the HTA.”
Members of Hawaii’s visitor industry also are closely watching how the HTA board changes play out as well as HTA’s role under Act 132. Many see HTA as necessary to amplify the branding and marketing of Hawaii as a visitor destination, as well as to guide tourism management. The agency is seen as vital to the smallest industry players, who don’t have the budgets to mount campaigns with the same reach that partnering with HTA provides.
Rick Egged, who worked on the creation of HTA during his past tenure at the state, provided public in-person testimony.
“Over the last 27 years, HTA has done a lot of great things,” said Egged, who was speaking as an individual. “I wanted, first of all, to applaud you for all the accomplishments during this iteration that you currently experience. I realize we are now transitioning into a new direction, and I’m very optimistic that this new direction will be productive as well. Really, it’s kind of coming full circle because when we created HTA, it was really a function of DBEDT.”
John Cole, the deputy attorney general representing HTA, emphasized Thursday that the HTA advisory board still has authority in certain areas, including the selection of the HTA president and CEO, although the person selected for HTA’s top job will now report to Green.