STAND. COM. REP. NO. 732-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2438
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2438, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to enhance the effectiveness of,
clarify the administration of, and expand the State Enterprise
Zones Law (Law), by allowing the following businesses to qualify
for enterprise zone (EZ) benefits:

     (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.

     The Hawaii Agriculture Research Center and Hawaii Technology
Trade Association testified in support of this measure.  The
Department of Business, Economic Development, and Tourism
(DBEDT), Department of Taxation, and Tax Foundation of Hawaii
submitted comments on the measure.


 
 
 
 
 
                                 STAND. COM. REP. NO. 732-00
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Clarifying that EZ businesses must submit an annual
          end-of-year report to DBEDT, rather than submit a new
          EZ application each year; and

     (2)  Making technical, nonsubstantive amendments to conform
          to current statutes and for clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2438, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2438, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair