STAND. COM. REP. NO. 993

Honolulu, Hawaii

, 2005

RE: H.B. No. 1723

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1723, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CAPITAL INVESTMENTS,"

begs leave to report as follows:

The purpose of this bill is to encourage the growth of up-and-coming high technology companies in Hawaii by increasing the amount of venture capital through the use of the State Private Investment Fund (SPIF).

The Hawaii Strategic Development Corporation, Hawaii Technology Trade Association, Hawaii Venture Capital Association, Hawaii Biotech, Inc., University Connections, International Venture Fund, Oceanit, HiBEAM, Chicago Pacific Capital Advisors, Inc., Nanopoint, Applied Marine Solutions, Johnson, Butler and Company, Goodsill Anderson Quinn and Stifel, and a concerned individual supported this bill. The Department of Business, Economic Development, and Tourism supported the intent of this measure. The Tax Foundation of Hawaii provided comments.

Your Committee believes that fund managers should make their best efforts to invest in Hawaii-based high-tech companies, and that possibilities be explored to reinvest a portion of revenues derived from the SPIF program in computer education programs in our public schools.

 

Your Committee has amended this bill by:

(1) Appropriating funds that will be expended by HSDC in

carrying out the purpose of this bill;

(2) Allowing the tax credits transferred by the Hawaii Strategic Development Corporation to taxpayers to be used to reduce taxes imposed by insurance regulation laws in addition to income taxes and taxes on financial institutions; and

(3) Making technical, nonsubstantive changes for clarity,

consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1723, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1723, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT TAKAMINE, Chair