STAND. COM. REP. NO.276

Honolulu, Hawaii

, 2003

RE: S.B. No. 82

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred S.B. No. 82 entitled:

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

begs leave to report as follows:

The purpose of this measure is to designate businesses within the boundaries of the closed Barbers Point Naval Air Station that are designated "qualified businesses" eligible for enterprise zone tax and economic benefits as provided in chapter 209E, Hawaii Revised Statutes.

Testimony supporting this measure was received from the Hawaii Motorsports Center and one individual. Opposing testimony was received from the Department of Taxation, Department of Business Economic Development, and Tourism (DBEDT), and Hawaii Community Development Authority (HCDA).

Your Committee finds that the area specified in this measure references the area known as Kalaeloa. Since the closure of the Barbers Point Naval Air Station, Kalaeloa has endured the severe economic repercussions of a sudden and massive exodus of residents, consumers, and businesses. Your Committee believes all reasonable efforts should be made to revitalize the area.

Your Committee has amended this measure by confining "qualified business" status to businesses existing in the specified Kalaeloa area on July 1, 2003. As amended, this measure provides immediate relief to existing businesses and would not apply to new businesses entering the area.

In addition, your Committee notes the testimony of DBEDT and HCDA which indicate that the Administration is developing a comprehensive plan to economically revitalize Kalaeloa. Therefore, your Committee has amended this measure to require DBEDT and HCDA to report to the 2004 Legislature on the final plan.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 82, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 82, 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,

____________________________

CAROL FUKUNAGA, Chair