STAND. COM. REP. NO. 2912

Honolulu, Hawaii

RE: S.B. No. 2974

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2974, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to establish, and require a legislative report from, a Business Revitalization Task Force to identify methods to improve Hawaii's general economic competitiveness and business climate.

Your Committee received written comments in support of this measure from the Department of Business, Economic Development and Tourism; Chamber of Commerce Hawaii; Hawaii Food Industry Association; Retail Merchants of Hawaii; Hawaii Farm Bureau; and Maui Chamber of Commerce.

Your Committee received written comments in opposition to this measure from UNITE HERE! Local 5.

Your Committee recognizes that Hawaii ranks below other states in new business formations, early survival rates for startups, self-employment, and business climate. Your Committee finds it appropriate to explore possible methods to improve the State's environment for businesses and economic growth.

Your Committee has amended this measure by:

(1) Providing that members of the task force selected from the local business community shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties;

(2) Changing the effective date to July 1, 2024; and

(3) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2974, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2974, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair