STAND. COM. REP. NO. 2247

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3032
                                        S.D. 1




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

Sir:

     Your Committee on Economic Development, to which was
referred S.B. No. 3032 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to establish a center for
Asian-Pacific infrastructure development within the Department of
Business, Economic Development, and Tourism.

     Testimony in favor of this measure was submitted by the
Department of Business, Economic Development, and Tourism,
Pacific International Center for High Technology Research,
Consulting Engineers Council of Hawaii, Lyon Associates, Inc.,
and Salomon Smith Barney.

     Your Committee finds that Asian-Pacific region economies are
now emerging from their recent economic difficulties, and the
World Bank estimates the region will need about $1.5 trillion in
new infrastructure in the next three to five years.
Approximately ten to fifteen per cent of this demand is for soft
infrastructure, such as planning, design, and engineering
services, areas where Hawaii firms have considerable expertise.

     Your Committee notes that the 1999 legislature provided an
incentive for these firms with an exemption for export of
services from the general excise tax.  This measure would take
the next step and provide these companies with links to specific
business opportunities in the Asian-Pacific region.

 
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     Your Committee is supportive of this measure, which will
capitalize on Hawaii's links to the region.  Your Committee has
amended this measure to clearly authorize the Director of
Business, Economic Development, and Tourism to establish the
center within the department, and to make technical amendments
for the purposes of clarity.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 3032, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 3032,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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