STAND. COM. REP. NO. 2795

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1926

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committees on Economic Development and Technology and Commerce and Consumer Protection, to which was referred H.B. No. 1926, H.D. 2, entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Establish a Department of Business, Economic Development, and Tourism operation special fund for the operations of the Department;

 

     (2)  Impose a surcharge on certain business- and commerce-related fees to be deposited into the special fund; and

 

     (3)  Require the surcharge revenues and $2,000,000 from the compliance resolution fund of the Department of Commerce and Consumer Affairs to be deposited into the special fund.

 

     Testimony in opposition to this measure was submitted by the Department of Commerce and Consumer Affairs; Hawaiian Electric Company, Inc.; General Contractors Association of Hawaii; American Council of Life Insurers; Hawaii Association of REALTORS; Maui Chamber of Commerce; Marriott Maui Ocean Club Resort; Maui Vacation Properties; Recycled Bikes and Boards and four individuals.  Comments for this measure were submitted by the Department of Budget and Finance, The Chamber of Commerce of Hawaii, Tax Foundation of Hawaii, and Integrated Economic Solutions, LLC.

 

     Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees have heard a number of concerns regarding this measure, ranging from revenue impacts, the inequity of a fixed surcharge on fees that vary greatly in amount, and the lack of a nexus between the type of fee and the work of the Department of Business, Economic Development, and Tourism.

 

     Your Committees have replaced the language in this measure with language from S.B. No. 2144, S.D. 2, and S.B. No. 2145, S.D. 1, which were previously heard and approved by your Committees.  As amended, this measure:

 

     (1)  Transfers the television and film industry activities and responsibilities and special fund under the Department of Business, Economic Development, and Tourism to the Hawaii Tourism Authority and establishes the Hawaii Film Office under the authority; authorizes the Hawaii Film Office to administer the tax credits under section 235-17, Hawaii Revised Statutes; and deletes unnecessary provisions (Part I);

 

     (2)  Amends the Hawaii Community-Based Economic Development Revolving Fund uses to require that moneys in the revolving fund be used to fund the Community-Based Economic Development Program and Enterprise Zone Program operational and staff costs (Part II);

 

     (3)  Transfers the Small Business Regulatory Review Board from the Department of Business, Economic Development, and Tourism to the Department of Commerce and Consumer Affairs; authorizes the Board to employ and set the salary of a small business advocate; and authorizes the expenses of the Board to be funded from the Compliance Resolution Fund, while allowing the Department flexibility in implementing this provision (Part III); and

 

     (4)  Changes the effective date from July 1, 2020, to July 1, 2010.

 

     As affirmed by the records of votes of the members of your Committees on Economic Development and Technology and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1926, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1926, 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 Committees on Economic Development and Technology and Commerce and Consumer Protection,

 

____________________________

ROSALYN H. BAKER, Chair

 

____________________________

CAROL FUKUNAGA, Chair