STAND. COM. REP. NO. 331

Honolulu, Hawaii

, 2025

RE: H.B. No. 437

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. 437 entitled:

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

begs leave to report as follows:

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

Your Committee received testimony in support of this measure from the Oahu Filipino Community Council; Filipino Chamber of Commerce of Hawaii; Hawaii Philippines Business & Economic Council; and three individuals. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that enhancing economic ties between Hawaii and the Philippines presents significant opportunities for strengthening mutual economic development. This measure is intended to help foster these economic benefits by requiring the Department of Business, Economic Development, and Tourism to establish an out-of-state office in the Philippines.

Your Committee has amended this measure by changing its effective date to July 1, 3000, to encourage further discussion.

Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider the following appropriation amounts for the establishment of an out-of-state office in the Philippines:

(1) $200,000 for fiscal year 2025-2026 for salaries, operating expenses, programmatic expenses, and start-up costs including a study as to where best to locate the office; and

(2) $175,000 for fiscal year 2026-2027 and thereafter on a recurring basis.

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. 437, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 437, 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