RESOLUTION

WHEREAS, Act 7, Session Laws of Hawaii 1963, provided for the establishment of foreign-trade zones in accordance with federal law; and

WHEREAS, Hawaii's foreign-trade zone No. 9, at Honolulu Harbor was authorized by the United States Foreign-Trade Zones Board in February, 1965; and

WHEREAS, there are currently seven active foreign-trade zone sites throughout the State; and

WHEREAS, Hawaii's strong economy, a significant rise in petroleum prices, and increased fueling activity pushed overall foreign-trade zone activity up more than eighty per cent in the past two years and has resulted in a total value of $6,500,000,000 in the past fiscal year, in merchandise received and forwarded in all activated foreign-trade zone sites in Hawaii; and

WHEREAS, in 2005, two hundred seventy-eight companies in the State used the foreign-trade zone program, handling one hundred eighty-eight types of merchandise from thirty-three countries; and

WHEREAS, the seven active foreign-trade zone sites provide direct and indirect employment for approximately two thousand four hundred persons and last year boasted capital improvements exceeding $31,000,000 and exports of approximately $632,000,000; and

WHEREAS, business activities such as manufacturing, assembly, storage, distribution exhibiting, testing, sampling, and modifying of goods or products, or both, may be undertaken in a foreign-trade zone without deposit of government fees; and

WHEREAS, a foreign-trade zone is an attractive and effective incentive for economic development and the creation of job opportunities; and

WHEREAS, it is the mission of Hawaii's foreign-trade zone program to make the benefits of the program available to as many qualifying companies as possible; and

WHEREAS, the county of Hawaii is actively pursuing strategies to expand and diversify its economic base and currently has sufficient natural and infrastructural resources to facilitate a substantial increase in business activity; and

WHEREAS, the Natural Energy Laboratory of Hawaii Authority is one of Hawaii's most successful economic development projects and its tenants have had success in dramatically increasing Hawaii's exports, primarily due to the growth of deep seawater bottling companies and aquaculture firms; and

WHEREAS, the Hawaii foreign-trade zone program has been working closely with officials from the Natural Energy Laboratory of Hawaii Authority and the county of Hawaii Department of Research and Development to help Hawaii businesses compete in external markets and have identified businesses at the Natural Energy Laboratory of Hawaii Authority's eight hundred seventy-acre science and ocean technology park in Kailua-Kona on the island of Hawaii as potential new users for the program; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, the Senate concurring, that the Department of Business, Economic Development, and Tourism and the Natural Energy Laboratory of Hawaii Authority are requested to continue their efforts to seek authorization from the United States Foreign-Trade Zones Board to establish, operate, and maintain a foreign-trade zone at the Natural Energy Laboratory of Hawaii Authority's eight hundred seventy-acre science and ocean technology park at Kailua-Kona on the island of Hawaii; and

BE IT FURTHER RESOLVED that the United States Foreign-Trade Zones Board is requested to act favorably upon the application relating to a foreign trade zone submitted by the Department of Business, Economic Development, and Tourism and the Natural Energy Laboratory of Hawaii Authority; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism; Chief Executive Officer of the Natural Energy Laboratory of Hawaii Authority; and the Executive Secretary of the United States Foreign-Trade Zones Board.

Report Title:

Foreign-Trade Zone; NELHA Science and Ocean Technology Park