STAND. COM. REP. NO. 676

Honolulu, Hawaii

RE:    S.B. No. 436

       S.D. 2

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. 436, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LIFE SCIENCES,"

begs leave to report as follows:

     The purpose of this measure is to provide a tax incentive for life sciences companies to conduct clinical trials in Hawaii.

     Your Committee received one written comment on this measure.  Copies of written comment submitted are available for review on the Legislature's website.

     Your Committee finds that life sciences companies that conduct clinical trials in Hawaii often create more and higher paying jobs in the State.  In addition, the conduct of clinical trials contributes to the diversification and sustainability of the State economy.  Your Committee believes that conducting these trials in Hawaii will put the State on the cutting edge of drug development and attract research funding from Asia and North America.

     Your Committee has amended this measure by:

(1)  Changing the dollar amounts for the tax credit cap and qualified clinical trial costs to unspecified amounts;

(2)  Changing the effective date to July 1, 2070, to encourage further discussion; and

(3)  Making technical, nonsubstantive changes for purposes 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. 436, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 436, S.D. 2.

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

____________________________

DONNA MERCADO KIM, Chair