STAND. COM. REP. NO. 1053

Honolulu, Hawaii

RE:    H.B. No. 716

       H.D. 2

       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 H.B. No. 716, H.D. 2, 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 measure:

     (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 Strategic Development Corporation.  Your Committees received comments on this measure from the 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 have the ability to 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 have amended this measure by:

     (1)  Inserting language in section 2 to broaden the definition of "event organizer" or "organizer" to also include persons and entities that organize technology and interactive media events;

     (2)  Inserting language in section 3 to authorize $500,000 of transient accommodation tax revenues allocated to the tourism special fund to be used for the innovative business interaction program; and

     (3)  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 H.B. No. 716, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 716, H.D. 2, 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