STAND. COM. REP. NO. 194

Honolulu, Hawaii

, 2023

RE: H.B. No. 852

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Agriculture & Food Systems, to which was referred H.B. No. 852 entitled:

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

begs leave to report as follows:

The purpose of this measure is to expand the types of business activity eligible for participation in Hawaii's Enterprise Zone Program 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 testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii State Energy Office; Hawai‘i Farm Bureau; Hawaii Gas; Hawaii Clean Power Alliance; and Clearway Energy Group.

Your Committee finds that including the processing of value-added agricultural products that are grown within an enterprise zone as an eligible business activity under the Enterprise Zone Program will support the production of value-added products that will help farmers increase their income while allowing locally produced value-added goods to compete with imported products and expand into new export markets, thereby strengthening the local economy.

Your Committee further finds that including the development or production of renewable energy as an eligible business activity under the Enterprise Zone Program will broaden the potential for energy projects in enterprise zones and support the State's renewable energy goals.

Your Committee has amended this measure by:

(1) Changing the effective date to June 30, 3000, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Agriculture & Food Systems that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 852, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 852, H.D. 1, and be referred to your Committee on Economic Development.

Respectfully submitted on behalf of the members of the Committee on Agriculture & Food Systems,

____________________________

CEDRIC ASUEGA GATES, Chair