Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Economic Development and Transportation, Military Affairs, and Government Operations, to which was referred S.B. No. 1619 entitled:

beg leave to report as follows:

The purpose of this measure is to provide a tax credit for investment in the development of a motor sports recreation and public safety training and educational facility at Kalaeloa parcel 9, and for directly related expenditures for land acquisition and closing costs, studies, design and engineering, infrastructure, and construction.

Testimony supporting this measure was received from the Hawaii Motorsports Center, Pacific Karting Club, and two individuals. The Department of Taxation submitted comments on this measure.

Your Committees find that the Barbers Point Naval Air Station closure created an economic vacuum in the Kalaeloa area. Residents and businesses of the Kalaeloa area have endured severe economic hardships resulting from the mass exodus of military personnel from the area. Your Committees believe that the State should encourage new development in Kalaeloa to revitalize its economy. Motor sports is one industry that has a wide appeal for consumers. The raceway at Campbell Industrial Park is a popular attraction; however, it is in need of renovations to bring it to modern racetrack standards. It must also vacate Campbell Industrial Park within the next two years. Building a motor sports facility at Kalaeloa will provide tremendous benefits to both Kalaeloa and the motor sports, recreation, and tourism industries in the State. Your Committees also believe that this measure is an appropriate tax incentive to develop motor sports and related facilities in Kalaeloa that are safe, supervised, and meaningful alternatives to high speed racing on state or county roads by youthful motorists.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Economic Development and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1619, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1619, S.D. 1, and be referred to the Committees on Water, Land, and Agriculture and Ways and Means.