STAND. COM. REP. NO. 2242

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2738
                                        




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

Sir:

     Your Committees on Economic Development and Education and
Technology, to which was referred S.B. No. 2738 entitled: 

     "A BILL FOR AN ACT RELATING TO NEW ECONOMY SKILLS TRAINING,"

beg leave to report as follows:

     The purpose of this measure is to create tax credits for new
economy skills training for the costs of training, retraining,
and related job creation costs.

     Testimony in favor of this measure was submitted by the
Governor's Special Advisor on Technology Development, Department
of Taxation, High Technology Development Corporation, and Hawai`i
Technology Trade Association.  The Tax Foundation of Hawaii
submitted comments.

     Your Committees find that if Hawaii is to compete
successfully in the new economy, it must build a technically
skilled workforce.  This includes encouraging young people to
pursue technology fields, persuading skilled workers who have
left Hawaii to return, and training the existing workforce in new
skills.  Your Committees believe this measure will help offset
what is often costly training in terms of both dollars and time
invested.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Education and Technology
that are attached to this report, your Committees are in accord
with the intent and purpose of S.B. No. 2738 and recommend that

 
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                                   STAND. COM. REP. NO. 2242
                                   Page 2


it pass Second Reading and be referred to the Committee on Ways
and Means.

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



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

 
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