STAND. COM. REP. NO. 454

Honolulu, Hawaii

RE:    S.B. No. 257

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committees on Public Safety, Intergovernmental and Military Affairs and Economic Development and Technology, to which was referred S.B. No. 257 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to amend the definition of "eligible business activity" relating to enterprise zones to include research and development activities occurring at an aerospace facility.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism.  Your Committees received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committees find that the Department of Business, Economic Development, and Tourism's enterprise zone program encourages the development of long-term, full-time jobs for residents in the State's economically disadvantaged areas.  Implementation of this measure will advance the State's aerospace industry and create additional skilled jobs for residents.

     Your Committees have amended this measure by clarifying the definition of "aerospace facility".

     As affirmed by the records of votes of the members of your Committees on Public Safety, Intergovernmental and Military Affairs and Economic Development and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 257, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 257, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental and Military Affairs and Economic Development and Technology,

____________________________ GLENN WAKAI, Chair

____________________________ WILL ESPERO, Chair