STAND

 

STAND. COM. REP. 2407

Honolulu, Hawaii

, 2004

RE: S.B. No. 2413

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Economic Development, to which was referred S.B. No. 2413 entitled:

"A BILL FOR AN ACT RELATING TO STATE ENTERPRISE ZONES,"

beg leave to report as follows:

The purpose of this measure is to allow more agricultural businesses the opportunity to participate in state enterprise zones.

This measure:

(1) Allows the Department of Business, Economic Development, and Tourism (DBEDT) to extend all tax incentives to existing qualified agricultural businesses for up to seven additional years;

(2) Provides that when an agricultural business that is wholly or partially prevented from maintaining eligibility requirements as a state enterprise zone business due to certain specified natural disasters beyond its control, it is not disqualified; and

(3) Clarifies the qualification requirement for agricultural businesses of increasing employment by replacing it with increasing cumulative average gross revenues for at least two per cent.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, Department of Agriculture, Land Use Research Foundation of Hawaii, Hawaii Farm Bureau Federation, Hawaii Agriculture Research Center, Hawaii Cattlemen's Council, and Pineapple Growers Association of Hawaii.

Your Committees find that agriculture in Hawaii is a vital component of Hawaii's economy. It provides the State with export products, a diversity of employment opportunities, a stage for tourism, and land and water stewardship. To encourage further economic development in rural areas, agriculture must be given the opportunity to prosper.

Your Committees further find that the state enterprise zone program is one method that provides business incentives to encourage agricultural activity.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2413 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Water, Land, and Agriculture and Economic Development,

____________________________ CAROL FUKUNAGA, Chair		____________________________ LORRAINE R. INOUYE, Chair