STAND. COM. REP. NO. 2915

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2438
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 2438, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to clarify and expand the
enterprise zone law.

     Testimony in favor of this measure was submitted by the
Department of Business, Economic Development, and Tourism,
Department of Taxation, and Hawaii Agriculture Research Center.
The Tax Foundation of Hawaii submitted comments.

     Your Committee finds that this measure would offer
additional incentives that will contribute to the continued
growth of Hawaii's economy.  Your Committee previously heard and
passed S.B. No. 2779, S.D. 1, the Senate companion to this bill.
Your Committee has amended this measure to incorporate those
changes made to the Senate measure:

     (1)  Changing "manufactured products" to "manufacturing
          companies" in the definition of a call center;

     (2)  Authorizing a business firm to be designated a
          qualified business on a yearly basis; and

     (3)  Making technical changes.

 
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                                   STAND. COM. REP. NO. 2915
                                   Page 2



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



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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