STAND. COM. REP. NO. 1102

Honolulu, Hawaii

RE:    S.R. No. 131

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Economic Development, Government Operations and Housing, to which was referred S.R. No. 131 entitled:

"SENATE RESOLUTION URGING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO EXPLORE THE RETENTION OF A NEW PROGRAM MANAGER FOR ITS EB-5 IMMIGRANT INVESTOR LICENSE OR SELL OR TRANSFER ITS EB-5 IMMIGRANT INVESTOR LICENSE,"

begs leave to report as follows:

     The purpose and intent of this measure is to urge the Department of Business, Economic Development, and Tourism to explore the possibility of retaining a new EB-5 Immigrant Investor program manager for the Hawaii Regional Center, or, in the alternative, to sell or transfer the EB-5 Immigrant Investor License.

     Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

     Your Committee finds that under the federal EB-5 Immigrant Investor program established in 1990, a Regional Center licensed by the U.S. Citizenship and Immigration Service may receive funds as a loan from foreign investors interested in obtaining a U.S. immigrant visa.  The Regional Center invests the funds in new commercial enterprises that create or preserve jobs.  In return, the foreign investor and his or her family receives conditional permanent residence under a U.S. EB-5 immigrant visa, which may later be adjusted to permanent status.

     The Department of Business, Economic Development, and Tourism stated in written testimony that it has notified the U.S. Citizenship and Immigration Service that the Department's relationship with its present Hawaii Regional Center manager will expire in April of 2013; has inquired whether the Department must renew its Regional Center designation if it changes its program manager; and has inquired whether the Hawaii Regional Center license may be transferred or sold.

     Your Committee finds that this measure can help increase the productivity of the Hawaii Regional Center and benefit the State by determining if a new program manager could increase the number of foreign investors participating in the program, reduce the Hawaii Regional Center's costs of administration, or improve on investment decisions.

     As affirmed by the record of votes of the members of your Committee on Economic Development, Government Operations and Housing that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 131 and recommends that it be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Government Operations and Housing,

____________________________

DONOVAN M. DELA CRUZ, Chair