STAND. COM. REP. 2995
Honolulu, Hawaii
, 2004
RE: H.B. No. 2191
H.D. 1
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committees on Economic Development and Science, Arts, and Technology, to which was referred H.B. No. 2191, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO ENTERPRISE ZONES,"
beg leave to report as follows:
The purpose of this measure is to remove provisions that restrict telecommunication service providers from being designated a qualified business in an enterprise zone.
Testimony in support of the measure was received from the Department of Business, Economic Development, and Tourism; the Department of Hawaiian Home Lands; Sandwich Isles Communications Inc.; Hawaii Reserves, Inc.; Nanakuli Housing Corporation; and Hawaiian Homestead Technology, Inc. The Department of Taxation offered comments on the measure.
Your Committees find that this measure enables a telecommunication service provider to be designated as a qualified business for enterprise zone purposes provided that these providers are engaged in telecommunication-related business within an enterprise zone and also deliver a majority of telecommunication-related services in that same enterprise zone or in another enterprise zone. Moreover, this measure also designates services provided by broad band distributed switching networks as an eligible business for enterprise zone purposes. This measure will not only increase access to critical telecommunication services for communities residing in these enterprise zones, such as Native Hawaiian homesteaders, but also stimulate much-needed economic growth and activity in these communities.
Your Committees have amended this measure by:
(1) Adding a new definition of "broad band distributed switching network;"
(2) Adding a new subsection relating to "broad band distributed switching network" that will allow statewide telecommunication networks that provide electronic access in areas outside the enterprise zone, in which the main network-operating center is located, to be eligible for enterprise zone benefits; and
(3) Changing the effective date to July 1, 2004.
As affirmed by the records of votes of the members of your Committees on Economic Development and Science, Arts, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2191, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2191, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Economic Development and Science, Arts, and Technology,
____________________________ DAVID Y. IGE, Chair |
____________________________ CAROL FUKUNAGA, Chair |
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