STAND. COM. REP. NO. 1381-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2779
                                     S.D. 1
                                     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 S.B. No.
2779, S.D. 1, 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 strengthen the State's
Enterprise Zones Law by:

     (1)  Allowing the following businesses to qualify for
          enterprise zone benefits:

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

          (b)  Service businesses that repair assisted technology
               equipment; and

          (c)  Call centers;

          and

     (2)  Clarifying certain administrative procedures.
 
     Testimony in support of this measure was submitted by the
Department of Taxation, the Department of Business, Economic

 
 
                                 STAND. COM. REP. NO. 1381-00
                                 Page 2

 
Development, and Tourism, the High Technology Development
Corporation, and the Hawaii Technology Trade Association.  The
Chamber of Commerce of Hawaii supported the intent of this bill,
and the Tax Foundation of Hawaii offered comments.

     Your Committee has amended this bill by making technical,
nonsubstantive revisions to correct drafting errors.

     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 S.B. No.
2779, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2779,
S.D. 1, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair