STAND. COM. REP. NO. 470

Honolulu, Hawaii

RE: S.B. No. 989

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Technology, to which was referred S.B. No. 989 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to appropriate or authorize funds, amend positions, or amend means of financing for various operating expenses of the Department of Business, Economic Development, and Tourism.

Your Committees received testimony in support of this measure from the Hawaii Technology Development Corporation, Hawaii Strategic Development Corporation, Hawai‘i Tourism Authority, Hawaii Green Infrastructure Authority, Chamber of Commerce Hawaii, and Maui Chamber of Commerce. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committees find that this measure expresses adjustments to the programs or positions included, maximum sums appropriated or authorized, or means of financing indicated for the Department of Business, Economic Development, and Tourism in the General Appropriations Act of 2017, as amended by the Supplemental Appropriations Act of 2018.

Your Committees have amended this measure by:

(1) Changing the means of financing for Item No. 3, Program ID BED105CI, Creative Lab coworking space and studio at the Entrepreneurs Sandbox and FTZ, to general funds;

(2) Changing the funding amount for Item No. 17, Program ID BED138GI, funding for fringe benefits, to $285,300 for fiscal years 2019-2020 and 2020-2021;

(3) Revising Item No. 19 by adding the Program ID BED144, amending the program description to read, "funding for EDB to formulate a business plan", and indicating that the funding is to be provided as a grant-in-aid;

(4) Removing Item No. 10, Program ID BED105CI, request reinstatement of Creative Lab funding, because it duplicates Item No. 4; and

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

Your Committees' intent in recommending this measure for passage is for the adjustments expressed to be incorporated into the General Appropriations Act of 2019 or other appropriate legislative vehicle or to be adopted separately. As such, your Committees request your Committee on Ways and Means to incorporate the adjustments expressed by this measure into the appropriate legislative vehicle or amend this measure to include any provisions necessary to effectuate its purpose and intent.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 989, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 989, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ GLENN WAKAI, Chair