HB975.DOC

SECTION 1. This Act shall be known and may be cited as the Hawaiian International Economic and Investment Leadership Act.

SECTION 2. The legislature finds that economic globalization, which is the increasing economic integration and interdependence of national, state, and local economies, is occurring by way of increasing trade in goods and services, the sharing and growth of technology and capital, and increasing cross-border investment. In order to achieve a successful economic future, the State must inevitably compete in the global economy by promoting Hawaii exports overseas and attracting more foreign direct investment.

Hawaii's economic competitiveness and investment are vital to the short- and long-term growth of the State's economy, as well as the employment and welfare of Hawaii's citizens. Attraction of foreign direct investment to the State creates local jobs and supports local economic growth. The legislature also finds that a partnership that includes economic development organizations, the private sector, academia, and government agencies is the best way to realize the State's full economic potential.

The purpose of this Act is to create an advisory council for global economic competitiveness to advise the director of business, economic development, and tourism and other state officials on policy additions and changes to help attract more foreign direct investment and increase Hawaii exports abroad.

SECTION 3. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . ADVISORY COUNCIL FOR GLOBAL ECONOMIC COMPETITIVENESS

§201- Definitions. As used in this part:

"Council" means the advisory council for global economic competitiveness.

"Economic development organization" means an organization, such as a chamber of commerce, whose mission is centrally or primarily focused on:

(1) Increasing economic growth or business investment; or

(2) Attraction potential or retention,

for an area within the State, including a neighborhood, city, county, metropolitan area or region, or for the State as a whole.

§201- Advisory council for global economic competitiveness; membership; annual report. (a) There is established within the department of business, economic development, and tourism for administrative purposes the advisory council for global economic competitiveness. The council shall review existing state laws and propose recommendations to enhance the State's business and investment global competitiveness to grow exports and attract inward foreign direct investment.

(b) The council shall be composed of no fewer than fifteen members. The governor and the director of business, economic development, and tourism shall serve as ex officio members of the council. The other members of the council shall be appointed by the governor, without regard to section 26-34, and shall serve for terms of two years, with reappointments made at the option of the governor. Appointed members of the council shall include:

(1) Executives from at least two United States subsidiaries of foreign-headquartered businesses operating in the State;

(2) Executives from at least two United States-based businesses headquartered outside of the State but operating in the State;

(3) Representatives from at least two economic development organizations located in the State;

(4) At least one faculty member from an institution of higher education located in the State;

(5) At least one economist; and

(6) Other representatives from the private sector or public sector who are positioned to provide valuable feedback.

(c) The members of the council shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses and a per diem in lieu of subsistence while away from their homes or regular places of business in the performance of their duties on the council.

(d) The council shall be co-chaired by:

(1) The director of business, economic development, and tourism; and

(2) A member of the council, aside from the governor, who is elected by a majority of the council or, during a vacancy before the next meeting of the council, appointed in the interim by the governor.

(e) The council shall:

(1) Meet no fewer than three times each year;

(2) Provide advice to the director of business, economic development, and tourism as well as the heads of the economic regulatory agencies of the State; and

(3) Facilitate coordination among the State's economic regulatory agencies and identify areas of potential for increased cooperation.

(f) The council shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session. The annual report shall promote a comprehensive economic development strategy for the State, including:

(1) An identification of economic sectors valuable to the State's growth in the global economy, accounting for both export and inward foreign direct investment opportunities;

(2) A determination of what state-level policies are needed to help the economic sectors identified in paragraph (1) grow and succeed, including:

(A) Infrastructure needs;

(B) Workforce training programs;

(D) Licensing and permitting support;

(E) Site-selection help;

(F) Financing assistance; and

(G) Other areas of state support deemed important to help these economic sectors grow;

(3) Recommendations on enhancing and developing state-level policies to increase state exports;

(4) Recommendations for developing and enhancing policies to attract and retain foreign direct investment in the State;

(5) An identification of existing regulations or executive orders in need of reform to carry out the policies identified in this section; and

(6) Any other tasks or ideas that the council deems appropriate to recommend or promote.

The director of business, economic development, and tourism shall be responsible for drafting and publishing the annual report.

(g) The council shall promote its annual report on state websites operated, maintained, or developed by the department of business, economic development, and tourism, as well as any other websites deemed by the governor to be useful in promoting the council's work.

(h) The council shall transmit its annual report to the chairs and members of any legislative committees or interim state legislative committees with relevant jurisdictions to implement any policy recommendations within the annual report."

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	975
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII