STAND. COM. REP. NO. 1034-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3032
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development and Business
Concerns, to which was referred S.B. No. 3032, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

     The purpose of this bill is to establish a Center for Asia-
Pacific Infrastructure Development (Center) within the Department
of Business, Economic Development, and Tourism (DBEDT) for
infrastructure development and project finance training by:

     (1)  Requiring the Director of Business, Economic
          Development, and Tourism to, among other things,
          establish such a Center; and

     (2)  Appropriating funds for the establishment of the
          Center.

     DBEDT and the Pacific International Center for High
Technology Research testified in support of the measure.

     Your Committee has amended this bill by deleting its
contents and adding provisions that:

     (1)  Specify the terms and conditions, and the amount of
          qualified improvement tax credits, allowed for
          qualified improvement costs for property designated
          primarily for resort or hotel use by the counties, or

 
 
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          property in which the primary purpose is for hotel or
          resort use or commercial or recreational use to support
          or service a hotel or resort use;

     (2)  Disallow Transient Accommodations Tax credits from
          qualified improvement costs;

     (3)  Require the Director of Taxation (Director) to develop
          procedures for the distribution and share of qualified
          improvement tax credits;

     (4)  Authorize the Director to develop for each qualified
          taxpayer, a plan that phases in over a ten-year period,
          the qualified improvement tax credits claimed by the
          taxpayer under the bill;

     (5)  Partially exempt the Hawaii Tourism Authority from the
          Environmental Impact Statements (EIS) Law; and

     (6)  Amend the definition of "action" under the EIS Law to
          exclude any marketing and promotional program that does
          not require a discretionary permit.

     As affirmed by the record of votes of the members of your
Committee on Economic Development and Business Concerns that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 3032, S.D. 2, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as S.B. No. 3032, S.D. 2, H.D. 1, and be referred to the
Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development and Business
                                   Concerns,



                                   ______________________________
                                   ROBERT N. HERKES, Chair