STAND. COM. REP. NO.859-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 3061

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred S.B. No. 3061, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this bill is to improve the economy by:

(1) Issuing an unspecified amount of general obligation (GO) bonds to finance the establishment of facilities to process macadamia nuts and to manufacture and produce macadamia products;

(2) Appropriating an unspecified amount of funds for the formulation of a strategic plan to make Hawaii the "Geneva of the Pacific" – a diplomatic setting for conflict resolution, multinational business, and multicultural relations;

(3) Creating a statewide unifying entity of 17 members from the public and private sectors to create a strategic economic development plan and appropriating an unspecified amount of funds for its development;

(4) Allowing firms enrolled in the Hawaii Enterprise Zones (EZ) Partnership program to use alternative means to calculate their average annual number of full-time employees to retain their eligibility for EZ tax benefits;

(5) Clarifying the application of certain high technology tax incentives;

(6) Exempting, from the general excise tax, amounts received by professional performers from live musical performances;

(7) Establishing a council to advise and assist the Legislature on the economy;

(8) Exempting lands held by the High Technology Development Corporation from chapter 171, Hawaii Revised Statutes, which, among other things, provides that public lands shall be managed, administered, and controlled by the Department of Land And Natural Resources;

(9) Repealing the June 30, 2002, sunset date for the Regulatory Flexibility Act and the small business defender, and making other changes to more effectively assist small businesses;

(10) Changing the frequency of loan interest rate adjustment for the Hawaii Capital Loan Program from semiannually to the first of each month to allow small businesses to take advantage of rapidly changing interest rate conditions;

(11) Clarifying that the Hawaii Innovation Development Fund is to be used to promote the development of new manufactured products, marks, works, works of authorship, or inventions that have direct economic benefits for Hawaii;

(12) Appropriating an unspecified amount of funds for the marketing of Hawaii products and services;

(13) Appropriating an unspecified amount of funds to support PACON International in the design and planning of an ocean park;

(14) Appropriating an unspecified amount of funds for the Community-Based Economic Development (CBED) program to assist community-based entrepreneurs; and

(15) Extending EZ benefits to retailers in the East Maui EZ.

Testimony in support of this measure was submitted by a member of the Maui County Council and Hawaii Macadamia Tree, Inc.

The Department of Business, Economic Development, and Tourism supported the intent of this bill. Adam Fields Productions opposed this measure. The Department of Taxation, the Chamber of Commerce of Hawaii, and Tax Foundation of Hawaii offered comments.

Your Committee has amended this measure by:

(1) Deleting the GO bond issuance and replacing it with an authorization to issue an unspecified amount of refundable special purpose revenue bonds to assist Hawaii Macadamia Tree, Inc., in financing the establishment of facilities to process macadamia nuts and manufacture macadamia products;

(2) Deleting the appropriation for marketing of Hawaii products and services as this provision is contained in S.B. No. 2411, S.D. 2;

(3) Deleting the appropriation for PACON International;

(4) Deleting the provision extending EZ benefits to retailers in the East Maui EZ;

(5) Deleting the appropriation for the CBED program as this provision is contained in S.B. No. 2540, S.D. 2, H.D. 1; and

(6) Making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3061, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3061, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

 

____________________________

LEI AHU ISA, Chair