Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Media, Arts, Science, and Technology, to which was referred S.B. No. 2770 entitled:

begs leave to report as follows:

The purpose of this short form measure is to amend the law relating to science and technology.

Your Committee has amended this measure by replacing its contents with language that adds reasonable time limitations for an audit and appeal of any high technology business investment tax credit or tax credit for research activities claimed under section 235-110.9 and section 235-110.91, Hawaii Revised Statutes, respectively.

As affirmed by the record of votes of the members of your Committee on Media, Arts, Science, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2770, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2770, S.D. 1, and be recommitted to the Committee on Media, Arts, Science, and Technology, for further consideration.