Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2191 entitled:

begs leave to report as follows:

The purpose of this bill is to remove provisions that prevent certain telecommunications business activity from being designated as a qualified business under the Enterprise Zone Program by:

Hawaii Reserves, Inc., Sandwich Isles Communications, Inc., and Verizon Hawaii submitted testimony in support of this measure. The Department of Business, Economic Development, and Tourism supported the intent of this measure. The Department of Taxation commented on this measure.

Your Committee notes that concerns have been raised that this measure may only apply to one or a few businesses. This is not the intent of your Committee, since we believe this measure should benefit the entire telecommunications industry.

Your Committee also respectfully requests that your Committee on Finance reviews the feasibility of this measure as it relates to the Executive Budget.

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 H.B. No. 2191 and recommends that it pass Second Reading and be referred to the Committee on Finance.