STAND. COM. REP. NO. 1707

Honolulu, Hawaii

RE: S.R. No. 92

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.R. No. 92 entitled:

"SENATE RESOLUTION URGING THE GOVERNOR TO NOMINATE OPPORTUNITY ZONES TO ASSIST WITH ECONOMIC DEVELOPMENT IN CENSUS TRACTS IN WAHIAWA AND WHITMORE VILLAGE,"

begs leave to report as follows:

The purpose and intent of this measure is to urge the Governor to nominate opportunity zones to assist with the economic development in census tracts in Wahiawa and Whitmore Village.

Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that the federal Tax Cuts and Jobs Act authorized a community economic development program called the Opportunity Zones Program to encourage long-term investments in economically distressed communities nationwide by providing incentives for investors to re-invest unrealized capital gains into opportunity funds established by the private sector, in exchange for temporary tax deferral and other tax benefits. Your Committee also finds that despite being meant for economically distressed communities, many of which are rural communities, opportunity zones were not designated in any rural areas in the City and County of Honolulu. This measure urges the Governor to nominate opportunity zones to assist with economic development in census tracts in Wahiawa and Whitmore Village.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 92 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair