STAND. COM. REP. NO.1290

Honolulu, Hawaii

, 2001

RE: H.B. No. 719

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred H.B. No. 719, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HIGH TECHNOLOGY,"

begs leave to report as follows:

The purpose of this measure is to clarify tax benefits or incentives available to qualified high technology businesses.

Your Committee has received testimony in favor of this measure from the Special Advisor for Technology Development, the Department of Taxation, the Department of Business, Economic Development, and Tourism, High Technology Development Corporation, Chun, Kerr, Dodd, Beaman & Wong, and Hawaii Technology Trade Association. Your Committee received comments on this measure from Tax Foundation of Hawaii.

Your Committee finds that clarification relating to provisions on sale of net operating losses by qualified high technology businesses and stock options and warrant income which are exempt from income tax, should be useful to the public in understanding and determining their eligibility to take advantage of these tax benefits.

Your Committee has amended this measure by including the following:

(1) An appropriation to the New Economy Transition program to help Hawaii businesses transition to a technology-based economy.

(2) Requiring conversion of legislative documents and reports received by the legislature to electronic copy.

(3) Electronic access to the administration's financial information.

(4) Requiring all infrastructure at all existing technology parks be completed before the governor may allocate funds for future technology parks.

(5) An appropriation of general revenue bonds to extend the community-based economic development loan and grant program to information technology for distressed rural areas.

(6) Creation of a high technology task force to develop goals and an implementation plan to improve Hawaii's high technology industry.

(7) Making necessary nonsubstantive amendments for clarity.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 719, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 719, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

ROD TAM, Chair