Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 648, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to further encourage the development of the high technology industry in the State by providing additional tax incentives.

Your Committee finds that the State is in a position to establish itself as a hotbed for high technology. Recognizing the enormous potential, the legislature passed several acts that are a solid foundation for technology-led economic development and diversification. However, more can be done to further ensure that Hawaii plays an influential role in high technology. This measure provides additional incentives in the form of tax credits that will stimulate additional investment in the State's high technology industry and spur economic growth and diversification.

Your Committee has amended this measure by changing the effective date in order to allow this measure to move forward for further discussion on its provisions. Your Committee also made technical, nonsubstantive changes.

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. 648, S.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.