STAND. COM. REP. NO. 2549

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2779
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2779, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to expand the types of
businesses participating in the state enterprise zones program
and to make nonsubstantive amendments clarifying the
administrative procedures.

     A state enterprise zone, selected by the counties and
approved by the governor, offers state and county tax credits and
exemptions and other incentives to certain types of businesses to
increase their hiring.  The purpose of such incentives is to
stimulate business and industrial growth resulting in
neighborhood revitalization.  In pursuit of this purpose, this
measure includes those businesses engaged in genetically-
engineered medical, agricultural, or maritime biotechnology
products under "qualified business", those businesses servicing
assisted technology equipment under "service business", and call
centers under "telecommunication services".  This measure also
requires a business firm to resubmit an application on an annual
basis to continue its designation as a qualified business.  Your
Committee is in agreement that reconciling the enterprise zone
laws with up-and-coming industries benefits the State's economy
overall.


 
a                                                     SB2779 SD1
 
                                   STAND. COM. REP. NO. 2549
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2779, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB2779 SD1