STAND. COM. REP. NO. 1247

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 782

       H.D. 2

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 782, H.D. 2, S.D. 1, 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 make the Department of Business, Economic Development, and Tourism more self-sufficient.

 

Specifically, this measure:

 

     (1)  Establishes 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)  Imposes a surcharge on certain business- and commerce-related fees and requires the surcharge revenues to be deposited into the special fund.

 

     Your Committee received comments in support of this measure from Richard C. Lim, Director, Department of Business, Economic Development, and Tourism.

 

     Your Committee received comments in opposition to this measure from Dwight Y. Takamine, Director, Department of Labor and Industrial Relations; Kealii Lopez, Director, Department of Commerce and Consumer Affairs; Gary M. Slovin, on behalf of USAA; Rick Tsujimura, on behalf of State Farm Insurance Companies; Kevin Katsura, Associate General Counsel, Legal Department, Hawaiian Electric Company, Inc.; Marvin S.C. Dang, attorney for Hawaii Financial Services Association; Myoung Oh, Government Affairs Director, Hawaii Association of REALTORS; Alison Powers, Executive Director, Hawaii Insurers Council; and Natalie J. Iwasa, Natalie J. Iwasa, CPA, Inc.

 

     Your Committee received comments on this measure from Kalbert K. Young, Director, Department of Budget and Finance; and the Tax Foundation of Hawaii.

 

     Your Committee finds that imposing a surcharge on certain business- and commerce-related fees and establishing the Department of Business, Economic Development, and Tourism operation special fund is unnecessary at the present time.

 

Your Committee further finds that promotion of the aerospace industry in Hawaii will result in job growth, a stronger local economy, and conservation of Hawaii's natural night-sky resource.

 

     Accordingly, your Committee has amended this measure by deleting the contents of H.B. 782, H.D. 2, S.D. 1, and inserting the contents of S.B. 165, S.D. 2, which extend the Starlight Reserve Advisory Working Committee until June 30, 2013, and appropriates moneys for the Office of Aerospace Development to identify and promote opportunities to expand and diversify aerospace-related industries in Hawaii.

 

     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 H.B. No. 782, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 782, H.D. 2, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair