STAND. COM. REP. NO. 1389-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2948
                                     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.
2948, S.D. 1, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HIGH TECHNOLOGY,"

begs leave to report as follows:

     The purpose of this bill is to encourage higher education
and training in science and technology fields that are essential
to economic development in this State by:

     (1)  Establishing a five-year New Economy Technology
          Scholarship Pilot Program (Pilot Program) to:

          (A)  Create a sustained pool of highly-trained
               technology workers in the shortest time possible;
               and

          (B)  Encourage Hawaii students to pursue higher
               education and training in science and technology
               fields;

          and

     (2)  Providing an income tax credit for the cost of training
          the taxpayer or the taxpayer's employees to upgrade
          their technology-related skills.

 
 
 
 
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     The High Technology Development Corporation and the Hawaii
Technology Trade Association testified in support of this
measure.  The Department of Business, Economic Development, and
Tourism (DBEDT) testified in support of the intent of this
measure.  The Hawaii Educational Networking Consortium testified
in support of the Pilot Program and in support of the intent of
the tax credit.  The Department of Taxation opposed this measure.
The Tax Foundation of Hawaii submitted comments.

     Your Committee notes that DBEDT testified that it is not the
appropriate agency to conduct an academic-related program to
provide scholarships for workforce development.

     Your Committee has amended this measure by changing its
effective date to July 1, 2010. 

     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.
2948, 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. 2948,
S.D. 1, H.D. 2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair