STAND. COM. REP. NO. 504

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 505
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred H.B. No. 505 entitled: 

     "A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Authorize the governor to designate up to eight
          renaissance zones in the state;

     (2)  Establish the renaissance review board;

     (3)  Exempt persons operating within renaissance zones from
          income and general excise taxes up to 100%; and

     (4)  Requires the Department of Business and Economic
          Development and Tourism to submit an annual report on
          the economic effects of this program.

     General comments regarding tax reform were provided by the
Department of Taxation, the AIA Hawaii State Council, the Chamber
of Commerce of Hawaii, the Hawaii Business Roundtable, the League
of Women Voters of Hawaii, the National Federation of Independent
Business Hawaii, the Small Business Economic Revival Force, the
Tax Foundation of Hawaii, and three individuals.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is

 
 
                                 STAND. COM. REP. NO. 504
                                 Page 2

 
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 505 and recommends that it pass
Second Reading and be referred to the Committee on Water and Land
Use.

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



                                   ______________________________
                                   ROBERT N. HERKES, Chair