STAND. COM. REP. NO. 239-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1960

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 1960 entitled:

"A BILL FOR AN ACT RELATING TO AN ECONOMIC DEVELOPMENT DISTRICT PLANNING ORGANIZATION,"

begs leave to report as follows:

The purpose of this measure is to establish and appropriate funds for temporary positions to support the activities of a district organization for a statewide economic development district.

Your Committee received testimony in support of this measure from the Office of Planning and Sustainable Development; County of Kauai Office of Economic Development; Office of Economic Revitalization of the City and County of Honolulu; Chamber of Commerce Hawaii; Hispanic Chamber of Commerce Hawaii; Hawaii Island Economic Development Board, Inc.; Hawaii Leeward Planning Conference; Island Plastic Bags Inc.; Hawaii Food Industry Association; and Hoʻonui LLC. Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that being designated as an economic development district by the United States Economic Development Administration offers opportunities to advance coordinated and locally developed goals that leverage and build upon interrelated community assets. An economic development district also advances a long-term established relationship with the United States Economic Development Administration that includes annual federal funding to support the formulation and execution of a Comprehensive Economic Development Strategy.

Your Committee further finds that the Department of Business, Economic Development, and Tourism has initiated the designation process with the United States Economic Development Administration for an economic development district encompassing the State, and that the Office of Planning and Sustainable Development was named as the district organization. Your Committee notes that a district organization must be assisted by professional staff having economic development planning and coordination qualifications to conduct the activities of the district organization. This measure will provide temporary positions, and funding for the positions, to ensure that the Office of Planning and Sustainable Development has the necessary human resources to effectively conduct the activities of a district organization as provided under federal law.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1960, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1960, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

DANIEL HOLT, Chair