STAND. COM. REP. NO. 2403

Honolulu, Hawaii

RE:    S.B. No. 2981

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Economic Development, Government Operations and Housing and Technology and the Arts, to which was referred S.B. No. 2981 entitled:

"A BILL FOR AN ACT RELATING TO THE ECONOMY,"

beg leave to report as follows:

     The purpose and intent of this measure is to amend state plan policies, objectives, and priority guidelines to promote and encourage innovative activity in the economy.

     Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Department of Business, Economic Development, and Tourism; Office of Information Management and Technology; High Technology Development Corporation; Hawaii Strategic Development Corporation; and The Chamber of Commerce of Hawaii.

     Your Committees find that there is a strategic need to develop new growth sectors for the State's economy to be globally competitive.  With regard to telecommunications and information technology, broadband and wireless communication capability, infrastructure, and advancement will play crucial roles in innovating Hawaii's economy.  Planning a framework that prioritizes and coordinates Hawaii's efforts to develop new growth sectors, such as telecommunications and information technology, will encourage innovative activity and entrepreneurship.

     Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Government Operations and Housing and Technology and the Arts that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2981, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2981, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Government Operations and Housing and Technology and the Arts,

____________________________ GLENN WAKAI, Chair

____________________________ DONOVAN M. DELA CRUZ, Chair