STAND. COM. REP. NO. 1050

Honolulu, Hawaii

RE:    H.B. No. 521

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 521, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO BUSINESS DEVELOPMENT,"

begs leave to report as follows:

     The purpose and intent of this measure is to stimulate and diversify Hawaii's economy by establishing and funding the High-Growth Grant Program and Special Fund to provide grants to qualified businesses to expand business operations, improve business productivity, and invest in food safety or quality control programs.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; High Technology Development Corporation; Chamber of Commerce Hawaii; Hawaii Farm Bureau; Maui Gold Pineapple Company; ILWU Local 142; and one individual.  Your Committee received comments on this measure from the Department of Budget and Finance.

     Your Committee finds that diversifying the State's economy beyond service-related industries is critical to Hawaii's future.  The High-Growth Grant Program will provide grants to business that, for example, export products to expand their operations, improve productivity, and invest in food safety or quality control programs, thereby improving the ability of these local businesses to compete globally.

     Your Committee has amended this measure by:

     (1)  Reducing the maximum amount of each grant that may be provided through the program to twenty percent, rather than forty percent, of the amount that is privately invested in a business; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 521, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 521, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Tourism, and Technology,

________________________________

GLENN WAKAI, Chair