STAND

STAND. COM. REP. NO. 1218-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2413

S.D. 1

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2413, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE ENTERPRISE ZONES,"

begs leave to report as follows:

The purpose of this bill is to address the unique economic needs of agribusiness by amending eligibility requirements of the State Enterprise Zone Program (SEZP) to allow more agricultural businesses to participate in the SEZP. Among other things, this bill:

(1) Extends tax incentives to existing, qualified businesses for no more than the number of months of the duration of a force majeure;

(2) Allows an agricultural business to maintain its SEZP eligibility during the period of a force majeure event; and

(3) Provides a revenue-growth option for an agricultural business that failed to meet the employment-growth requirement of the SEZP.

The Department of Agriculture, Department of Business, Economic Development, and Tourism, Land Use Research Foundation of Hawaii, Hawaii Agriculture Research Center, Hawaii Farm Bureau Federation, Maui County Farm Bureau, Pineapple Growers Association of Hawaii, and Kaupo Ranch Ltd., testified in support of this bill. The Department of Taxation supported the intent of this measure.

Your Committee amended this bill by:

(1) Changing its effective date to July 1, 2010, to facilitate further discussion; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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 S.B. No. 2413, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2413, S.D. 1, H.D. 2.

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

		____________________________ DWIGHT Y. TAKAMINE, Chair