STAND. COM. REP. NO.3331
RE: S.C.R. No. 112
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Economic Development and Technology, to which was referred S.C.R. No. 112 entitled:
"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO STUDY THE MOVEMENT OF CAPITAL OUT OF THE STATE,"
begs leave to report as follows:
The purpose of this measure is to request the Department of Business, Economic Development, and Tourism (DBEDT) to study the movement of capital out of the State by reviewing companies that are not based in Hawaii but provide services and products to Hawaii residents.
Testimony in support of this measure was received from the Hawaii Government Employees Association and an individual. Comments were received from the DBEDT.
Your Committee finds that for a number of years, our State has seen the introduction of an increasing number of firms from the continental United States and the rest of the world into our marketplace. In most cases, these firms do not retain their profits locally, but instead return such moneys to their offshore parent companies. Despite the tax revenue generated by these companies, Hawaii suffers a significant revenue drain from this flight of capital.
Your Committee has amended this measure by replacing its contents with provisions to establish a task force to develop and administer an economic development plan for the State.
Your Committee finds that a plan, with clear goals and objectives, is a necessary first step to action. The State desperately needs comprehensive economic development plan, so that we can explore ways to revive and sustain our sagging economy.
The task force proposed in the measure, as amended, will consist of representatives of the counties, the business community, academia, the Legislature, and the administration. With all of this brainpower together in one room, your Committee believes that we can solve the State's economic woes once and for all through development of a sound plan, with clear goals and objectives.
As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 112, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 112, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,
ROD TAM, Chair