STAND. COM. REP. NO. 2383

Honolulu, Hawaii

RE:    S.B. No. 2764

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Economic Development, Government Operations and Housing and Energy and Environment, to which was referred S.B. No. 2764 entitled:

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

beg leave to report as follows:

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

     Your Committees received testimony in support of this measure from The Chamber of Commerce of Hawaii; Hawaiian Electric Vehicle Network; Maui Venture Consulting, LLC; and one individual.  Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Commerce and Consumer Affairs; Department of Taxation; Tax Foundation of Hawaii; and RevoluSun.

     Your Committees find that sustainable business corporations engaged in the development or production of renewable energy will stimulate business, agricultural, and industrial growth in areas that will result in neighborhood revitalization.  The addition of other forms of renewable resources to the state enterprise zone program is consistent with currently approved business activities, which include wind energy production.  Furthermore, state enterprise zone tax incentives and regulatory flexibility will help attract renewable energy businesses and further the State's renewable energy goals.

     Your Committees have amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

     As affirmed by the records of votes of the members of your Committees on Economic Development, Government Operations and Housing and Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2764, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2764, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Government Operations and Housing and Energy and Environment,

____________________________ MIKE GABBARD, Chair

____________________________ DONOVAN M. DELA CRUZ, Chair