Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs, and Government Operations and Water, Land, and Agriculture, to which was referred S.B. No. 235, S.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to provide a tax credit of up to $5,000,000 per taxable year, up to an aggregate total of $25,000,000, for a taxpayer that incurs qualified costs in the development of law enforcement, emergency medical services, and public safety training facilities at Kalaeloa.

DynCorp and two individuals submitted testimony supporting this measure. The Department of Taxation and Tax Foundation of Hawaii submitted comments on this measure.

Your Committees find that this measure provides the necessary funds to develop a virtual training center where emergency response and other enforcement personnel can train in a simulated environment without ever leaving the classroom. This type of training would greatly enhance public safety training and ensure that emergency responders are truly prepared.

Your Committees amended this measure by making a technical, nonsubstantive change for clarity.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs, and Government Operations and Water, Land, and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 235, S.D. 1, as amended herein, recommend that it be referred to the Committee on Ways and Means, in the form attached hereto as S.B. No. 235, S.D. 2.