Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 685 entitled:

begs leave to report as follows:

The purpose of this bill is to stimulate economic recovery in the State by directing the Governor to designate the entire island of Oahu as an enterprise zone from July 1, 2003, until June 30, 2005.

By designating the City and County of Honolulu as an enterprise zone, qualified businesses on Oahu would be afforded the state and county tax incentives provided by the Enterprise Zone law.

Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, Enterprise Honolulu, and Hawaii Technology Trade Association supported this bill. The Chamber of Commerce of Hawaii supported the intent of this bill.

The Department of Business, Economic Development, and Tourism opposed this bill. The Department of Taxation offered comments.

Your Committee finds that creating a single enterprise zone for the entire island of Oahu may not be appropriate at this time, as there already are five existing enterprise zones on Oahu. It would be more appropriate to expand existing enterprise zones where business activity, job preservation, and job creation is needed.

Your Committee has amended this bill by:

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. 685, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 685, H.D. 1, and be referred to the Committee on Finance.