STAND. COM. REP. NO.  608-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 116

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 116, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to encourage the development of medical and research services in the State by:

     (1)  Establishing medical enterprise zones;

     (2)  Establishing a qualified income tax credit of 25 percent for three years; and

     (3)  Creating a pilot medical enterprise zone in West Maui.

The Hawaii Medical Association and West Maui Improvement Foundation, Incorporated testified in support of this measure.  The Department of Business, Economic Development, and Tourism testified in support of the intent of this measure.  The Department of Taxation and the Tax Foundation of Hawaii provided comments on this measure.

     Your Committee respectfully requests that the Committee on Finance further examine the possibility of including more areas for the pilot medical enterprise zones.

     Your Committee has amended this measure by:

     (1)  Including Honouliuli as a pilot medical enterprise zone;

     (2)  Changing the effective date of this measure to January 1, 2112, for the purpose of facilitating further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 116, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 116, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. McKELVEY, Chair