STAND. COM. REP. NO. 1493

Honolulu, Hawaii

RE:    H.B. No. 716

       H.D. 2

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 716, H.D. 2, S.D. 1, entitled:

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

begs 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 business investors and 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 innovative business interaction program.   

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development and Tourism and Hawaii Strategic Development Corporation.  Your Committee received written comments on this measure from the State-County Functions Working Group and Tax Foundation of Hawaii. 

     Your Committee finds that business growth is an important component to economic development.  Business growth is facilitated by establishing relationships between investors and innovative talent.  These important relationships are established and fostered when there are opportunities for capital and talent to interact.  Your Committee further finds that enabling the State to contract with an organizer of an annual event in Hawaii to add a component that encourages the interaction of business investors and talent will advance economic development. 

     Your Committee has amended this measure by:

     (1)  Changing the specific amount of revenue to be expended by the Department of Business, Economic Development, and Tourism for the innovative business interaction program to an unspecified sum;

     (2)  Changing the total transient accommodations tax revenue allocation to the tourism special fund to an unspecified sum;

     (3)  Changing the specific amount of transient accommodations tax revenues to be allocated from the tourism special fund to the innovative business interaction program to an unspecified sum; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 716, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 716, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair