STAND. COM. REP. NO. 2421

Honolulu, Hawaii

RE:    S.B. No. 3081

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Tourism and Economic Development, Government Operations and Housing, to which was referred S.B. No. 3081 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish an innovative business interaction program under the Hawaii Tourism Authority;

     (2)  Increase the amount of transient accommodation tax revenues to be deposited into the tourism special fund, with the increase to be used for the innovative business interaction program; and

     (3)  Increase the amount of transient accommodation tax revenues to be deposited into a subaccount of the tourism special fund for a safety and security budget in accordance with the Hawaii Tourism Strategic Plan 2005-2015.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawai‘i Tourism Authority; Hawaii Strategic Development Corporation; Hawaii Open Data; Oceanit; and three individuals.  Your Committees received comments on this measure from the Tax Foundation of Hawaii.

     Your Committees find that innovative business growth in Hawaii requires that relationships be established between investors and innovative talent.  To accomplish this, opportunities for capital and talent to interact must be provided.  This measure promotes economic growth by establishing an innovative business interaction program to increase the opportunity for interaction between business investors and innovative talent.

     As affirmed by the records of votes of the members of your Committees on Tourism and Economic Development, Government Operations and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3081 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________ DONOVAN M. DELA CRUZ, Chair

____________________________ GILBERT KAHELE, Chair