Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 648, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to improve the climate for high technology businesses and their support businesses by:

(1) Amending current tax incentives; and

The Hawaii Technology Trade Association, Building Industry Association-Hawaii, Hawaii Ventures Corporation, Hawaii Construction Industry Association, Oceanit, Oahu Economic Development Board, Square USA, Inc., Viata Online, Inc., Sandwich Isles Communications, Inc., RevaComm, Hawaii Venture Capital Association, Farnsworth Consulting, Business West Accelerator, Dimensia, Inc., Hawaii Opportunities Group, LLC, 4Charity.Com, Adecco Technical-Hawaii, and several individuals submitted testimony in support of this bill. The Department of Taxation, Department of Business, Economic Development, and Tourism, High Technology Development Corporation, and Mele Pacific, Inc., submitted testimony in support of the intent of this bill. The Office of the Special Advisor to the Governor for Technology Development, Tax Foundation of Hawaii, Chun, Kerr, Dodd, Beamon, and Wong, Shigeji Sato and Company, and Hoike.net submitted comments on this bill.

Your Committee has amended this bill by:

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. 648, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 648, S.D. 2, H.D. 2.