STAND. COM. REP. NO.1219

Honolulu, Hawaii

, 2003

RE: GOV. MSG. NO. 14

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Economic Development and Tourism, to which was referred Governor's Message No. 14, submitting for study and consideration the nomination of:

TED LIU, Director of the Department of Business, Economic Development & Tourism, for a term to expire December 4, 2006

beg leave to report as follows:

Upon review of background information submitted by the nominee, your Committees find that Ted Liu is the co-founder and partner of PacifiCap Group, LLC, a Hawaii-based private equity firm focused on venture capital investment, middle market equity, debt and strategic transactions, and corporate finance advisory services. The firm is currently advising U.S. multinationals on strategic transactions in China, Taiwan, and Korea. The nominee is formerly the Managing Director of Morgan Stanley & Company, Inc., Senior Associate and head of the China Practice Group for the Wall Street law firm of Skadden Arps Slate Meagher & Flom, Chief Executive Officer of Public International Investments Ltd./First Shanghai Investments Ltd., Advisor to the New York Stock Exchange on financial markets in China, Associate with Simpson Thacher & Bartlett, and member of the founding staff of China Daily.

The nominee received a J.D. degree from the New York University School of Law with a concentration on corporate and international law, and a BGS degree in economics and political science from the University of Michigan.

Your Committees received testimony in support of the nominee from over 100 testifiers, including from the Housing and Community Development Corporation of Hawaii; University of Hawaii at Hilo; John A. Burns School of Medicine; University of Hawaii Cinematic and Digital Arts Program; The Research Corporation of the University of Hawaii; APEC Study Center University of Hawaii; East-West Center; Maui Office of Economic Development; Honolulu Office of Economic Development; Hawaii County Department of Research and Development; Hawaii Community Development Authority; AIG Hawaii Insurance Company, Inc.; The Pacific Resource Partnership; ND Solutions, Inc.; RevaComm, Inc.; First Presbyterian Church of Honolulu; Honolulu Japanese Chamber of Commerce; National Federation of Independent Business-Hawaii; JS Services, Inc.; The Chamber of Commerce of Hawaii; The Hawaii Business Roundtable; Hawaii Technology Trade Association; Hawaii Strategic Development Corporation; Enterprise Honolulu; Hawaii Venture Capital Association; Building Industry Association-Hawaii; Hawaiian Electric Industries, Inc.; Bank of Hawaii Corporation; First Hawaiian Bank; CityBank; Hawaii National Bank; Maui Economic Development Board, Inc.; Hawaii Island Economic Development Board; Waikiki Improvement Association; Pacific Basin Economic Council; Pacific International Center for High Technology Research; PacificCap Group, LLC; Hong Kong China Hawaii Chamber of Commerce; Hong Kong Business Association of Hawaii; Market City, Ltd.; Hawaiian Host; Kaneohe Ranch Company, Limited; Oshima Chan Wikoff & Combs LLC; Broadband iTV; Get2Hawaii, Inc.; TeraBiz; Morgan Stanley & Co., Inc.; Foodland Super Market, Ltd.; The Oceanic Institute; Victoria Ward, Limited; NetEnterprise Inc.; Pacific Information Exchange, Inc.; Hoakea LLC; MW Group, Ltd.; Mark Development, Inc.; Designer Built Systems, Inc.; Hawaiian Islands Ministries; Hawaii Biotech, Inc.; and Chun, Kerr, Dodd, Beaman & Wong, along with numerous individuals.

Mr. Liu comes to state government with outstanding business and professional experience. He addressed your Committees' questions and concerns regarding potential conflict of interest issues, clarification of his background experience at Morgan Stanley and PacifiCap, and his opinion on Act 221, Session Laws of Hawaii 2001, relating to tax incentives for high technology entities. Your Committees note in particular his intent to aggressively promote the local film industry, including local filmmakers looking for direction, advice, and support.

With respect to Act 221, your Committees agree with the nominee's opinion that the Act has had a definite correlation with the recent availability of venture capital for Hawaii technology start-ups, and has contributed to an increase in local confidence on the part of entrepreneurs by enhancing their ability to start companies, access capital, and succeed.

As affirmed by the records of votes of the members of your Committees on Economic Development and Tourism that are attached to this report, your Committees, after full consideration of the background, character, experience, and qualifications of the nominee, has found the nominee to be qualified for the position to which nominated and recommend that the Senate advise and consent to the nomination.

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

____________________________

DONNA MERCADO KIM, Chair

____________________________

CAROL FUKUNAGA, Chair