HB1603.DOC

SECTION 1. If Hawaii is to be a player in a global economy, it is essential that an assessment of the State's economic conditions and prospects be assessed in an objective manner to address serious challenges facing the State, including but not limited to the overall high cost of living and doing business in the State, the high costs of housing and consumables, outward migration of skilled and knowledge workers, and outward investment.

In view of the heightened competiveness facing individual states and countries, it is critical that the State's leaders have a clear understanding of the global forces that influence the State's economy, the State's relative competitiveness, and policies and options that are available for placing the State on an optimal development path.

The purpose of this Act is to make an appropriation to allow the legislative reference bureau to contract with an out-of-state contractor to undertake a diagnostic assessment of the conditions, challenges, and opportunities facing the State.

SECTION 2. The legislative reference bureau is directed to contract with an out-of-state contractor to undertake the following:

(1) A diagnostic assessment of the conditions, challenges, and opportunities facing the State, to include but not be limited to:

(A) A benchmarking of the State's key assets and liabilities;

(B) An industry analysis to examine the key groupings of industries that drive the State's economy;

(C) An assessment of the key competitive forces affecting the State and its industries within it, e.g., costs of living and doing business, globalization and outsourcing, consumer trends, and new technological developments; and

(D) An initial analysis of the key policies that are affecting the State's economic global position; and

(2) An overall strategy for addressing the challenges facing the State and utilizing the advantages or strengths of the State in meeting these challenges.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000 or so much thereof as may be necessary for fiscal year 2009-2010 for contracting the services of economic consultants with expertise in international and local economic analysis to undertake the diagnostic assessment set forth in section 2. To ensure the objectivity of the analysis, the principal consultant selected shall be an out-of-state economic consultant.

The sum appropriated shall be expended by the legislative reference bureau for the purposes of this Act.

SECTION 4. Not less than twenty days prior to the convening of the regular session of 2011, the legislative reference bureau shall submit the diagnostic assessment to the legislature, along with any recommended proposed legislation.

SECTION 5. This Act shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1603
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII