STAND

STAND. COM. REP. 817

Honolulu, Hawaii

, 2003

RE: H.B. No. 21

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 21, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CORPORATE DISCLOSURE,"

begs leave to report as follows:

The purpose of this bill is to ensure that different types of tax breaks are achieving their intended objectives by creating a mechanism for the State to monitor the effectiveness of various forms of development assistance made to stimulate economic development, including tax credits, tax discounts, loan guarantees, industrial development bonds, enterprise zones, and tax increment financing.

Among other things, this bill requires:

(1) The Department of Taxation (DOTAX) to develop a detailed tax expenditure budget that identifies uncollected revenues due to various forms of tax credits;

(2) The counties to develop a registry to disclose property tax reductions and abatements;

(3) The Department of Business, Economic Development, and Tourism to develop a form for on-budget development assistance for use by all granting bodies; and

(4) All granting bodies, when considering development assistance applications, to perform certain analyses concerning projected wages and benefits.

The Hawaii State AFL-CIO testified in support of this measure. DOTAX and Tax Foundation of Hawaii offered comments.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 21, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT Y. TAKAMINE, Chair