STAND. COM. REP. NO. 348
Honolulu, Hawaii
, 2005
RE: S.B. No. 1879
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 1879 entitled:
"A BILL FOR AN ACT RELATING TO STATE ENTERPRISE ZONES,"
begs leave to report as follows:
The purpose of this measure is to amend the state enterprise zone program to encourage agricultural activity.
Testimony in support of this measure was submitted by the Department of Agriculture, County of Maui's Office of Economic Development, Big Island Farm Bureau, Hawaii Cattlemen's Council, Hawaii Agriculture Research Center, Hawaii Crop Improvement Association, and Hawaii Farm Bureau. Comments were also submitted by the Department of Business, Economic Development, and Tourism and the Department of Taxation.
Your Committee finds that state enterprise zone programs are a very good business incentive to encourage agriculture activity. However, it is very difficult for agricultural businesses to meet some of the existing requirements for these programs. Thus, this measure provides amendments to the program requirements by:
(1) Allowing agricultural businesses to be eligible for tax incentives in the event of force majeure; and
(2) Allowing agricultural businesses to meet annual gross revenue requirement if the businesses are unable to meet annual full-time employee requirements.
Your Committee amended this measure by:
(1) Including processors of agricultural products to be included as businesses that may remain eligible for tax incentives during a force majeure event;
(2) Adding a new definition for "leased employees";
(3) Amending the definition for "full-time employees" to include leased employees or employees under a joint employer relationship;
(4) Deleting obsolete language for enterprise zone designations;
(5) Clarifying that enterprise zone firms cannot claim the same tax credits or exemptions in other tax incentive programs; and
(6) Making technical, nonsubstantive changes for style and clarification purposes.
As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1879, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1879, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Water, Land, and Agriculture,
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____________________________ RUSSELL S. KOKUBUN, Chair |
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