STAND. COM. REP. NO. 161-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2438
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 2438 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to expand the State Enterprise
Zones Law to include:

     (1)  Businesses engaged in research, development, sale, or
          production for all types of genetically-engineered
          medical, agricultural, or maritime biotechnology
          products;

     (2)  Call centers; and

     (3)  Businesses that repair assisted technology equipment.

     This bill also allows business firms to be designated a
qualified business on a yearly basis with the approval of the
applicable governing county body and the Department of Business,
Economic Development, and Tourism (DBEDT) upon the business
firm's providing satisfactory proof of its eligibility.

     The Department of Taxation, DBEDT, a council member from the
County of Hawaii, the Hawaii Island Economic Development Board,
the Hawaii Agriculture Research Center, and Industry Network
Corporation testified in support of this measure.


 
 
                                 STAND. COM. REP. NO. 161-00
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Including manufactured products under the definition of
          "call center"; and

     (2)  Making technical, nonsubstantive amendments for
          clarity, consistency, and style.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 2438, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2438, H.D. 1, and be referred to the Committee
on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair