STAND. COM. REP. NO. 164

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 721

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committees on Tourism and International Affairs and Economic Development and Technology, to which was referred S.B. No. 721 entitled:

 

"A BILL FOR AN ACT RELATING TO INNOVATIVE BUSINESS INTERACTION,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to promote economic development.  More specifically, this Act:

     (1)  Establishes an innovative business interaction program under the Department of Business, Economic Development, and Tourism to increase the opportunity for interaction between innovative business investors and innovative business talent from out-of-state and in-state; and

     (2)  Increases the transient accommodations tax revenues deposited into the tourism special fund to provide funds for the program.

 

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; High Technology Development Corporation; and Hawaii Tourism Authority.  Your Committees received testimony in opposition to this measure from the State Procurement Office.  Your Committees received comments on this measure from the Tax Foundation of Hawaii and Department of Budget and Finance.

 

     Your Committees find that innovative business growth in Hawaii requires relationships to be established between investors and innovative talent through opportunities that allow for capital and talent to interact.  Opportunities need not occur at trade, scientific, commercial, or technology-focused events, and Hawaii has hosted events that may serve as the foundation for innovative business interaction.  Your Committees further find that the State should contract with the organizer of an annual event in Hawaii to add a component that encourages the interaction of innovative business investors and talent.

 

     Your Committees also find that, as raised in testimony, some of the proposed statutory language in section 2 of this measure may be unnecessarily restrictive of competition and contrary to the Hawaii Administrative Rules.

 

     Accordingly, your Committees have amended this measure by:

     (1)  Deleting language in section 2 that established minimum qualification criteria for the event organizer, and thereby requiring the contract to be awarded in accordance with chapter 103D, Hawaii Revised Statutes, without further restrictions; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Tourism and International Affairs and Economic Development and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 721, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 721, S.D. 1, and be referred to the Committee on Ways and Means.

 


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

 

____________________________

GLENN WAKAI, Chair

 

____________________________

GILBERT KAHELE, Chair