EXECUTIVE CHAMBERS

HONOLULU

June 20, 2003

STATEMENT OF OBJECTIONS TO HOUSE BILL NO. 1579

Honorable Members

Twenty-Second Legislature

State of Hawaii

Pursuant to Section 16 of Article III of the Constitution of the State of Hawaii, I am returning herewith, without my approval, House Bill No. 1579, entitled "A Bill for an Act Relating to the Economic Diversification Authority."

The purpose of this bill is to explicitly and specifically enumerate the duties of the Department of Business, Economic Development, and Tourism (DBEDT) to identify and implement ways to diversify Hawaii's economy. The bill requires DBEDT to develop and implement plans, programs, and initiatives to facilitate economic diversification.

This bill is objectionable because it is unnecessary. The enumerated duties already fall within the general objectives, functions, and duties of DBEDT. Section 201-2, Hawaii Revised Statutes, states that DBEDT's function is to "make broad policy determinations with respect to economic development in the State and to stimulate through research and demonstration projects those industrial and economic development efforts which offer the most immediate promise of expanding the economy of the State."

DBEDT has already accomplished what this bill intends to achieve, and continues to update its plans on an ongoing basis. Legislative micromanagement of the methods that DBEDT employs to achieve its objectives is inappropriate and reduces the DBEDT's flexibility to use its resources in the most efficient and productive way possible. Such flexibility is especially important in these lean fiscal times.

For the foregoing reasons, I am returning House Bill No. 1579 without my approval.

Respectfully,

LINDA LINGLE

Governor of Hawaii