re: Act 221: Support for Proposed Senate Draft of SB 199 CD2

From the Hawaii Science & Technology Council

STRONG SUPPORT FOR: PROPOSED SENATE DRAFT OF SB 199 CD2

STRONG OPPOSITION TO: PROPOSED HOUSE DRAFT SB 199 CD2 THAT WOULD DE FACTO KILL ACT 221

NEXT CONFERENCE COMMITTEE HEARING

TUESDAY, APRIL 28, 2009, 2:45PM in Room 309

E-MAIL OR PHONE CALL NEEDED BY TUESDAY

ASK LEGISLATORS TO SUPPORT SENATE'S PROPOSED SENATE VERSION OF SB199 CD2

Call your legislators before Tuesday’s 2:45pm hearing to ask them to support the Senate's proposed Conference Draft 2 (CD2) for SB199, which industry supports. As amended, this proposed draft would save over $130 million over the FY10-FY11 biennium and addresses enforcement issues while preserving Act 221.

However, the proposed House version would effectively kill Act 221 by limiting disproportionate credit allocations from investors who cannot use the credits. This would result in significant lost investments to investors and could cause many Act 221 companies to run out of money and fail.

Not sure who your legislators are? Visit http://www.capitol.hawaii.gov/site1/info/vstreet/voterinformation.asp

COPY AND PASTE INTO TWO EMAILS - sens@capitol.hawaii.gov and reps@capitol.hawaii.gov

Dear Legislator:

RE: STRONG SUPPORT FOR THE SENATE'S PROPOSED SB 199 CD2 WHICH IS PROJECTED TO SAVE MORE THAN $130 MILLION OVER BIENNIUM and PRESERVE ACT 221.

STRONG OPPOSITION TO HOUSE PROPOSED SB199 CD2 WHICH WOULD EFFECTIVELY KILL ACT 221FOR MOST INVESTORS.

I am writing to ask that you support the Senate's proposed SB199 CD2. The Hawaii Science & Technology Council, together with other industry representatives, has worked tirelessly with members of the legislature, the hi-tech industry, and community leaders in an ongoing collaborative effort to successfully craft legislation that reduces the State’s budgetary shortfall, retains the investment and job creation components of Act 221, and provides additional tools for enforcement of Act 221’s safeguards against potential abuse. These proposed solutions will not only produce substantial budgetary savings for the State but also safeguard Hawaii’s emerging hi-tech industry just at the moment it is beginning to find its sea legs – an industry that is an essential key to Hawaii’s 21st Century economic growth.

Industry supports a revised version of the Senate's proposed SB 199 CD2 that is estimated to result State budgetary savings of more than $130 million over the FY10 – FY11 biennium.

Conversely, we are strongly opposed to the House proposed draft SB199 CD2 which will effectively kill Act 221 through the restriction of the allocation of credits among investors. This change will eliminate much if not most of Hawaii investor interest and substantially decrease Mainland investment as well. Such restrictions would significantly dry-up this critical source of investment capital and result in job losses, company closures and decreased local ownership in Hawaii's most promising tech companies. They would de-rail the significant progress made by the State to diversify our economy over the past seven years.

Please support industry in our support of a revised version of the Senate's proposed SB199 CD2. Please do not support efforts to kill Act 221, as would result if the House version of this bill passes.