STAND. COM. REP. NO. 1136

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1683
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Education and Technology and Economic
Development, to which was referred H.B. No. 1683, H.D. 2,
entitled: 

     "A BILL FOR AN ACT RELATING TO HIGH TECHNOLOGY,"

beg leave to report as follows:

     The purpose of this measure is to establish a high
technology research park at the University of Hawaii at Hilo, and
to provide tax incentives to encourage high technology
businesses, including biotechnology businesses, to locate their
operations in the high technology park.

     Testimony in support of this measure was submitted by the
University of Hawaii at Hilo.  Testimony in support of the intent
of this measure was submitted by the Department of Taxation, the
Hawaii Community Development Authority, and the Hawaii Institute
of Tropical Agriculture and Resources.  The Tax Foundation of
Hawaii submitted comments on this measure.

     Your Committees find that with current and proposed research
facilities in astronomy and agriculture located on the University
of Hawaii at Hilo Research Park, this area is ideal for high
technology companies because of the proximity of both built in
clients and educational synergy.  

     Your Committees have amended this measure to relocate the
establishment of the high technology research park within

 
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                                   STAND. COM. REP. NO. 1136
                                   Page 2


Chapter 304, Hawaii Revised Statutes, which deals with University
of Hawaii affairs.  In so doing, your Committees have replaced
the Hawaii Community Development Authority with the University of
Hawaii at Hilo as the lead agency in the development of this
park. 

     Your Committees have further amended this measure to allow
the High Technology Development Corporation to render assistance
to the Hilo High Technology Research Park.  Because the High
Technology Development Corporation assists other high technology
parks across the State, your Committees find that this agency
would be best able to assist the University of Hawaii at Hilo.

     Your Committees have also deleted the tax incentives
provided for in this measure.  It is your Committees' belief that
such tax incentives should be applicable statewide, and no single
area should be singled out for tax incentives.  Your Committees
note that tax credits for high technology investments are
addressed in H.B. No. 377, H.D. 2, S.D. 1, also heard by your
Committees.

     Your Committees note that ceeded lands may be involved in
this measure and encourage further discussion on this issue.

     It is the hope of your Committees that other high technology
parks be established in other neighbor island locations.

     As affirmed by the record of votes of the members of your
Committees on Education and Technology and Economic Development
that is attached to this report, your Committees are in accord
with the intent and purpose of H.B. No. 1683, H.D. 2, as amended
herein, and recommend that it pass Second Reading in the form
attached hereto as H.B. No. 1683, H.D. 2, S.D. 1, and be referred
to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Technology and Economic
                                   Development,



____________________________       ______________________________
LORRAINE R. INOUYE, Chair          DAVID Y. IGE, Chair




 
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