STAND. COM. REP. NO. 680

Honolulu, Hawaii

RE:    S.B. No. 1248

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1248 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to authorize agricultural producers and manufacturers to renew their eligibility in the enterprise zone program for an additional seven years.

This measure also allows receipts, sales, and employees of a business establishment that are located within the same county to count toward qualification in the enterprise zone program.  Furthermore, this measure adds a new definition of "qualified business activity" to include manufacture of tangible personal property, production of agricultural products, research, development, sale, or production of genetically-engineered products, and production of electric power from wind energy.

     Your Committee received four written comments on this measure.  The written comments may be reviewed on the Legislature's website.

     Your Committee believes that this measure will enable the agricultural industry to attract investment and help to revitalize distressed communities in agricultural areas of the State.

     Your Committee has amended this measure by:

     (1)  Inserting the inadvertently omitted phrase "enterprise zone located with the same county" in section 209E-9(b)(3) for consistency with other amendments made in the measure;

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion; and

     (3)  Making technical nonsubstantive amendments for the purpose of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1248, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1248, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair