STAND. COM. REP. NO. 882

Honolulu, Hawaii

RE: S.B. No. 817

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 S.B. No. 817 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 expand the pool of eligible companies that can participate in the Enterprise Zone program.

More specifically, this measure amends 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 Department of Business, Economic Development, and Tourism; Hawaii Clean Power Alliance; Hawaii Farm Bureau; Hawaii Food Industry Association; Hawaii Forest Industry Association; Hawaii Gas; Ulupono Initiative; and one individual.

Your Committee received written comments on this measure from the Department of Agriculture and Tax Foundation of Hawaii.

Your Committee finds that the Enterprise Zone program was enacted as a cooperative program between the State and the counties to promote jobs in areas of high unemployment. Your Committee believes that this measure will incentivize development in the agriculture and renewable energy industries, which are of critical importance to the State's self-sufficiency and sustainability.

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 S.B. No. 817 and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair