STAND. COM. REP. NO.509
Honolulu, Hawaii
, 2003
RE: S.B. No. 509
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Economic Development, to which was referred S.B. No. 509 entitled:
"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT PROGRAMS,"
begs leave to report as follows:
The purpose of this measure is to institute additional accountability for economic development programs by requiring the Legislative Analyst to conduct an annual cost-benefit analysis of economic development initiatives funded by the State.
Your Committee received testimony commenting on the measure from the Department of Business, Economic Development, and Tourism.
Your Committee finds that the State provides numerous forms of assistance to individuals and businesses with the intent to spur economic development. The assistance is primarily provided in the form of direct appropriations, grants, and subsidies, including tax credits and exemptions. However, there is no adequate tracking of the actual benefits of the economic development program or its cost to the State. Your Committee finds that this measure implements provisions that will provide the State with the necessary information to assess and evaluate economic development programs.
Your Committee has amended this measure by requiring the Legislative Analyst to also perform a cost-benefit analysis of tax credits, exemptions, and other benefits that may be utilized by participants of an economic development program.
As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 509, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 509, 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,
____________________________ CAROL FUKUNAGA, Chair |
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