STAND. COM. REP. NO. 837-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1950

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1950, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SEAWATER AIR CONDITIONING,"

begs leave to report as follows:

The purpose of this measure is to help reduce the State's dependency on foreign oil by allowing seawater air conditioning cooling systems within certain areas or districts to benefit from the State's Enterprise Zones Program.

Honolulu Seawater Air Conditioning, LLC; Ulupono Initiative; and The Chamber of Commerce of Hawaii testified in support of this measure.  The Department of Business, Economic Development, and Tourism testified in opposition to this measure.  The Department of Taxation and Tax Foundation of Hawaii commented on this measure.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2030, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1950, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1950, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair