STAND. COM. REP. NO. 508

Honolulu, Hawaii

RE:    S.B. No. 1189

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Economic Development and Technology, to which was referred S.B. No. 1189 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

     (1)  Repeal particular special and revolving funds that have become dormant or unnecessary; and

     (2)  Transfer the unencumbered balances in those funds into the high technology revolving loan fund.

     Your Committee received testimony in support of this measure from the Hawaii Emergency Management Authority.  Your Committee received testimony in opposition to this measure from the Department of Business, Economic Development, and Tourism; Hawaii Housing Finance and Development Corporation; Office of the Auditor; Office of Planning; Hawaii Community Development Authority; High Technology Development Corporation; Hawaii Strategic Development Corporation; Natural Energy Laboratory of Hawaii Authority; and Hawaii Automobile Dealer's Association.

     Your Committee finds that among the many special and revolving funds currently administered by the Department of Business, Economic Development, and Tourism, three funds have become either dormant or unnecessary.  Your Committee further finds that the remaining balances in these funds would be more effectively used if transferred to the high technology special fund.

     Your Committee has amended this measure by:

     (1)  Amending the list of special or revolving funds to be repealed;

     (2)  Amending the fund receiving the remaining unencumbered balance of the repealed funds from the high technology revolving loan fund to the high technology special fund;

     (3)  Changing the effective date to June 30, 2015; and

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

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1189, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1189, 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 and Technology,

____________________________

GLENN WAKAI, Chair