HB146 HD1 HSCR189

 

STAND. COM. REP. 189

Honolulu, Hawaii

, 2003

RE: H.B. No. 146

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 146 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose of this bill is to help stimulate economic growth in Hawaii's rural areas by:

(1) Authorizing the Governor to designate up to eight renaissance zones in the State. The size of each renaissance zone would not exceed 10 acres, and the duration of renaissance zone status would not exceed 15 years;

(2) Establishing the Renaissance Review Board to recommend the selection of renaissance zones;

(3) Exempting persons located and operating within renaissance zones from up to 100 percent of the person's income and general excise taxes; and

(4) Requiring the Department of Business, Economic Development, and Tourism (DBEDT) to submit an annual report on the economic effects.

Enterprise Honolulu and MacFarms of Hawaii supported this bill. DBEDT, Department of Taxation, and Tax Foundation of Hawaii offered comments.

Your Committee recognizes that the Enterprise Zone law may already provide similar incentives for businesses in distressed areas; however, more must be done to create opportunities in rural areas where there are high unemployment rates and attendant social problems. It is hoped that the tax incentives derived from doing business in renaissance zones will attract investors and generate jobs for the unemployed.

Accordingly, your Committee has amended this bill by:

(1) Making a technical, nonsubstantive amendment to correct a clerical error; and

(2) Clarifying that the tax exemptions would take effect for taxable years beginning after December 31, 2003.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 146, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 146, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

 

		____________________________ BRIAN SCHATZ, Chair