STAND. COM. REP. NO. 495

Honolulu, Hawaii

, 2025

RE: H.B. No. 1407

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred H.B. No. 1407 entitled:

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

begs leave to report as follows:

The purpose of this measure is to require the Department of Business, Economic Development, and Tourism to establish a Chamber of Commerce Grant Program.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; one member of the Kauaʻi County Council; Hawaii Food Industry Association; NFIB, Hawaii Chapter; Hawaiʻi Island Chamber of Commerce; Chamber of Commerce Hawaii; Hawaiʻi Farm Bureau; Charter Communications; Kapolei Chamber of Commerce; Japanese Chamber of Commerce & Industry of Hawaii; Maui Chamber of Commerce; and five individuals.

Your Committee finds that there is a need to bolster business innovation and economic development in the State. Your Committee further finds chambers of commerce, with their vast networks of small businesses, are well positioned to support new entrepreneurs in the State. Your Committee believes that this measure will help encourage economic development in the State by establishing the Chamber of Commerce Grant Program to provide qualifying chambers of commerce with grants for developing and cultivating entrepreneurs, with a focus on mentoring, workshops, and skill development.

Your Committee has amended this measure by:

(1) Clarifying that the program is a competitive grant program and that certain standards and conditions under chapter 42F, Hawaii Revised Statutes, do not apply to funds received under the program;

(2) Requiring applicants to provide proof that they have raised at least one-fifth of the grant amount requested, to be used for the same purposes as a grant awarded through the program and, upon receipt of grant funds, provide a $1 match for every $5 of grant funds received;

(3) Adding an appropriation for an unspecified sum;

(4) Changing the effective date to July 1, 3000, to encourage further discussion; and

(5) 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 Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1407, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1407, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

GREGGOR ILAGAN, Chair