STAND. COM. REP. NO. 946

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 782

       H.D. 2

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Economic Development and Technology, to which was referred H.B. No. 782, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Establish the Department of Business, Economic Development, and Tourism Operation Special Fund for the operation of the Department of Business, Economic Development, and Tourism; and

 

     (2)  Impose a surcharge on certain business- and commerce-related fees and require the surcharge revenues to be deposited into the Special Fund.

 

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism.  Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations, Hawaii Insurers Council, USAA, Hawaii Financial Services Association, American Council of Life Insurers, National Association of Insurance and Financial Advisors, State Farm Insurance Companies, E Noa Corporation, and Hawaiian Electric Company, Inc.  Your Committee received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.

 

     Your Committee finds that this measure would provide the Department of Business, Economic Development, and Tourism with a dedicated source of funding that would enable the Department to engage in more long-term planning and other activities that are crucial to the State's economic development.

 

     Your Committee has heard a number of concerns regarding this measure, but believes that the proposal merits further consideration.

 

Your Committee has amended this measure by inserting an effective date of July 1, 2050, to allow for further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 782, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 782, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

CAROL FUKUNAGA, Chair