STAND. COM. REP. NO.  272-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2049

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committees on Energy & Environmental Protection and Economic Development & Business, to which was referred H.B. No. 2049 entitled:

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

beg leave to report as follows:

The purpose of this measure is to expand eligible business activity in the state enterprise zones to include the development, production, or energy storage of various types of renewable energy by sustainable business corporations.

The Chamber of Commerce of Hawaii; Hawaiian Electric Company, Inc.; Maui Electric Company; Hawaii Electric Light Company; Maui Venture Consulting, LLC; Hawaiian Electric Vehicle Network; and a few individuals testified in support of this measure.  The Department of Business, Economic Development, and Tourism; Department of Commerce and Consumer Affairs; Department of Taxation; and Tax Foundation of Hawaii commented on this measure.

     Your Committees have amended this measure by:

     (1)  Removing the limitation on corporate structure, specifically sustainable business corporations as defined in section 420D-2, Hawaii Revised Statutes, relative to the development, production, or energy storage of various types of renewable energy; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency and style.

     As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Economic Development & Business that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2049, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2049, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Economic Development & Business,

____________________________ CLIFT TSUJI, Chair

____________________________ CHRIS LEE, Chair