STAND. COM. REP. NO. 1724

Honolulu, Hawaii

RE: H.B. No. 852

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 852, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to amend state enterprise law by amending the definition of "eligible business activity" to include the processing of value-added agricultural products grown within an enterprise zone, and the development or production of renewable energy.

Your Committee received written comments in support of this measure from the Hawaii State Energy Office, Hawaii Food Industry Association, Hawaii Forest Industry Association, Ulupono Initiative, Hawaii Farm Bureau, Hawaii Gas, Hawaiian Electric, and Hawaii Clean Power Alliance.

Your Committee received written comments on this measure from the Department of Agriculture; Department of Business, Economic Development, and Tourism; and Tax Foundation of Hawaii.

Your Committee finds that the State should pursue efforts to strengthen the local economy, support local farmers and rural communities, and reach renewable energy goals. Your Committee also finds that expanding the range of activities that qualify for the State's enterprise zone program, as proposed by this measure, will stimulate growth and development in the private sector, lead to advances in renewable energy, and help lower the cost of renewable energy projects.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 852, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 852, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair