STAND. COM. REP. NO. 1195

Honolulu, Hawaii

RE: H.B. No. 437

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Economic Development and Tourism and Transportation and Culture and the Arts, to which was referred H.B. No. 437, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO OUT-OF-STATE OFFICES,"

beg leave to report as follows:

The purpose and intent of this measure is to require, and appropriate funds for, the Department of Business, Economic Development, and Tourism to establish an out-of-state office in the Republic of the Philippines.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Filipino Chamber of Commerce of Hawaii; and one individual.

Your Committees find that it is a goal of the State to create economic longevity, growth, and stability to facilitate sustainable development benefiting its residents. Your Committees further find that Hawaii and the Republic of the Philippines share a long history of cultural and business ties. Due to the major role Filipinos play in all sectors of the State's economy, expanded cooperation between the State and the Republic of the Philippines will have foreign and domestic benefits. Out-of-state offices are an important component of promoting cultural and economic partnerships between the State and its foreign partners. By requiring and funding the Department of Business, Economic Development, and Tourism's establishment of an office in the Republic of the Philippines, this measure will further strengthen the trade, cultural exchange, and economic partnerships between the State and the Republic of the Philippines, thereby creating greater opportunities for mutual economic development.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

As affirmed by the records of votes of the members of your Committees on Economic Development and Tourism and Transportation and Culture and the Arts that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 437, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 437, 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 Committees on Economic Development and Tourism and Transportation and Culture and the Arts,

________________________________ CHRIS LEE, Chair

________________________________ LYNN DECOITE, Chair