Bill Text: HI HR132 | 2011 | Regular Session | Amended
Bill Title: Fund management industry in Hawaii
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2011-04-15 - (H) Resolution adopted in final form. [HR132 Detail]
Download: Hawaii-2011-HR132-Amended.html
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HOUSE OF REPRESENTATIVES |
H.R. NO. |
132 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
H.D. 1 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
PROMOTING AND SUPPORTING THE DEVELOPMENT OF THE FUND MANAGEMENT INDUSTRY IN HAWAII THROUGH THE AKAMAI FOUNDATION AND OTHER INCENTIVES.
WHEREAS, cities that are home to major financial markets enjoy higher tax revenues and higher median income per capita; and
WHEREAS, on a global scale, Asian economies and their related capital markets represent the largest opportunity for economic growth over the next ten to 20 years; and
WHEREAS, Australia has recently surpassed Hong Kong and Singapore as the growth market for Asia-focused fund managers due to attributes, such as:
(1) A western legal and regulatory system;
(2) A relatively low cost of operations including office space and labor; and
(3) A favorable time zone and climate;
and
WHEREAS, while sharing these attributes with Australia, Hawaii has additional attractive attributes to be an Asia-focused capital market and fund manager base of operations, including:
(1) Being a sovereign state within the United States of America;
(2) Being in a time zone that allows managers to operate within the normal business hours of both New York and major Asian financial markets without undue hardship;
(3) Having a resident population with a strong historical connection to many Asian countries and that is familiar, comfortable, and compatible with Asian ethnicities, customs, and traditions; and
(4) Being a world famous resort and travel destination and a favorite place to raise a family or retire due to many other "quality of life" attributes;
and
WHEREAS, the vast majority of Hawaii's financial assets are currently managed by firms outside of Hawaii, thereby depriving Hawaii of the benefits, including profits, jobs, and ancillary support services, presently enjoyed by firms managing Hawaii's financial assets outside of Hawaii; and
WHEREAS, there is virtually no downside to cultivating an Asia-focused fund management industry in Hawaii because the industry:
(1) Is not capital intensive and does not consume valuable resources including land and raw materials;
(2) Does not produce any byproducts harmful to the environment or conflict with any local cultural practices;
(3) Does not require an initial investment of state resources or development of special infrastructure; and
(4) Will have little impact on Hawaii's traffic situation due to the relatively low ratio of personnel to assets under management and the hours of the Asian financial markets;
and
WHEREAS, Hawaii's existing fund management industry is small, and Hawaii residents, and native Hawaiians in particular, are severely underrepresented in this very lucrative and high paying industry; and
WHEREAS, the AKAMAI Foundation encourages partnering industry, academia, and the public sector to enhance finance-related economic and educational opportunities for Hawaii; and
WHEREAS, the AKAMAI Foundation supports the AKAMAI Finance Academy, which is unique to the State of Hawaii and provides high school and college students with the necessary skills to compete for exclusive careers in the fund management industry; and
WHEREAS, upon completion of the AKAMAI Finance Academy program, graduates leave job-ready to compete in an Asia-focused fund management market; and
WHEREAS, development of an Asia-focused fund management industry in combination with specialized training and internship programs at the high school and college level could have many positive benefits for Hawaii, including:
(1) Providing the opportunity for Hawaii residents to participate in the growth of the industry;
(2) Allowing many Hawaii-born persons who are working in the fund management industry abroad to return home, yet maintain their financial lifestyle, to help develop the industry and be near family and friends;
(3) Providing Hawaii financial asset owners the opportunity to select from a larger pool of locally-based asset managers and, given comparable returns, to invest a larger portion of their financial assets with local managers, spurring organic growth in addition to imported growth;
(4) Diversifying Hawaii's economy;
(5) Producing additional tax revenues for the State of Hawaii;
(6) Increasing the median income level of Hawaii residents;
(7) Providing the opportunity for more rich, robust, practical interaction between educational institutions teaching finance and the finance industry, via an increased number and variety of internship opportunities;
(8) Providing the opportunity for Hawaii to boost and diversify tourism by becoming a major hosting participant in the multibillion dollar industry of Asia-focused financial conventions, forums, and special events;
(9) Creating demand for new services necessary to support a burgeoning financial industry, such as securities related information technology specialists and programmers, securities attorneys, auditors, compliance officers, administrators, and prime brokers; and
(10) Attracting the best and brightest financial educators with specific interest in the Asian financial markets to seek employment in Hawaii's educational institutions;
now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that this body supports the development of the Asia-focused fund management industry in the State through the AKAMAI Foundation and other incentives and acknowledges the benefits that the development of the fund management industry would bring to the State; and
BE IT FURTHER RESOLVED that this body respectfully requests the Governor and executive department agencies and other stakeholders to work together to develop a strategy for the establishment, maintenance, and growth of the fund management industry in Hawaii; and
BE IT FURTHER RESOLVED that this body respectfully requests the Hawaii Strategic Development Corporation to:
(1) Establish a task force to formulate strategies for the development of an Asia-focused fund management industry in the State; and
(2) Report its findings and recommendations to the Legislature no later than 30 days before the convening of the 2012 Regular Session;
and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor; Director of Finance; Director of Taxation; Director of Business, Economic Development, and Tourism; Chairperson of the Board of the Hawaii Strategic Development Corporation; Hawaii Securities Industry Association; Director of Commerce and Consumer Affairs; and President of the AKAMAI Foundation.
Fund management industry in Hawaii
