STAND. COM. REP. NO.1326

Honolulu, Hawaii

, 2003

RE: H.B. No. 21

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 21, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CORPORATE DISCLOSURE,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Set standards relating to job and wage creation, by which state agencies determine whether to provide development assistance to corporations that apply for such assistance;

(2) Require corporations that receive development assistance to meet their job creation and wage and benefit goals within a specified time period or else pay back the value of that assistance to the state agencies;

(3) Require the Department of Business, Economic Development, and Tourism to create development assistance application forms for the agencies to use;

(4) Require the agencies to submit copies of the applications that they have received from corporations to the Department.

(5) Authorize the Department of Taxation to disclose state tax expenditures to the Legislature. Specifically, the department is authorized to disclose, based on income tax filings, the dollar amount of tax expenditures made by the State in the form of uncollected revenues for each individual tax credit provided by the State;

(6) Recapture assistance from recipients that fail to achieve jobs, wages, and benefit goals; and

(7) Appropriate general funds to the Department of Taxation for the tax expenditure disclosure.

Your Committee finds that businesses that receive financial consideration in the form of tax breaks or incentives from the State in exchange for promises of economic growth should be held accountable for their promises.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and style. Your Committee has also amended this measure by changing the effective date from July 1, 2010, to July 1, 2020, for the purposes of continued discussion on the matter.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 21, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 21, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair