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URGENT ACTION REQUIRED
HOUSE AND SENATE CONFEREES VOTE TO KILL ACT 221
YOUR VOICE NEEDS TO BE HEARD
CALL FIRST AND THEN E-MAIL YOUR LEGISLATORS NOW TO OPPOSE SB199 CD2
FLOOR VOTE ON TUESDAY AM, MAY 5TH
House and Senate conferees voted Thursday to REJECT industry’s proposed CD2 which would have:
- Provided OVER $130 Million in savings to the state budget through an aggregate cap of $80M
- Preserved Act 221while addressing State’s fiscal issues
Conferees voted to SUPPORT a draft which replaces the $80 Million cap as the tool to deliver savings with the elimination of the 2:1 credit allocation policy with a 1:1 limit.
What this means is:
- The intent has always been to KILL ACT 221, not provide savings
- Legislators ARE NOT LISTENING TO INDUSTRY
- A legislator at the hearing acknowledged the potential drop in investment from the proposed 1:1 credit allocation restriction but stated publicly that this policy change would HAVE LITTLE IMPACT UPON INVESTMENTS AND COMPANIES. This position was justified based upon the legislator’s belief that Act 221 companies raise all their money in the first year and therefore companies would not be hurt financially.
- The state is needlessly breaking it's promise to investors and companies by changing this law one year prior to the 2010 sunset
ACT TODAY. HOLD YOUR LEGISLATORS ACCOUNTABLE FOR THE FUTURE OF OUR STATE
Not sure who your legislators are? Visit http://www.capitol.hawaii.gov/site1/info/vstreet/voterinformation.asp
SAMPLE TESTIMONY - copy and paste into two emails: sens@capitol.hawaii.gov and reps@capitol.hawaii.gov
Dear Legislator:
RE: STRONG OPPOSITION TO SB199 CD2 – NEEDLESSLY KILLS ACT 221
I am writing IN STRONG OPPOSITION to SB199CD2 which NEEDLESSY KILLS ACT 221. Industry has worked in good faith with legislators to deliver solutions which save the state over $130 Million but do not cut off investment dollars into companies.
SB199 CD2 effectively kills 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.
- THOSE LEGISLATORS WHO SAY ELIMINATION OF THIS POLICY WILL NOT HURT INDUSTRY ARE WRONG.
- A VOTE IN SUPPORT OF THIS BILL IS A VOTE AGAINST THE GROWTH OF THE TECH INDUSTRY IN HAWAII AND AGAINST CONTINUED ECONOMIC DIVERSIFICATION IN OUR STATE.
The action of the conferees is particularly egregious because this position is not necessary to deliver savings to the state. I urge you to vote against this bill.
Sincerely,
((Signature))
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