STAND. COM. REP. NO. 1310

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1923

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committees on Economic Development and Taxation and Water, Land, Agriculture, and Hawaiian Affairs, to which was referred H.B. No. 1923, H.D. 2, entitled:

 

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

 

beg leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Provide that qualifying agricultural businesses shall remain eligible for tax incentives under the enterprise zone (EZ) program in the event of force majeure; and

 

     (2)  Allow agricultural businesses to meet gross revenue requirements if they are unable to meet the full-time employment requirements of the EZ program.

 

     Testimony in support of this measure was received from the Department of Agriculture; Department of Business, Economic Development, and Tourism; Office of Planning; County of Kauai Office of Economic Development; County of Hawaii Department of Research and Development; Hawaii Agriculture Research Center; Hawaii Farm Bureau; Maui County Farm Bureau; and Hawaii Crop Improvement Association.  The Tax Foundation of Hawaii submitted comments on this measure.

 

     Your Committees find that Hawaii's EZ program has very low participation by agricultural businesses.  This measure would begin to address that by providing for additional flexibility in meeting EZ requirements for agricultural businesses, particularly in the case of major natural disasters.

 

     Your Committees have amended this measure by:

 

     (1)  Changing the effective date to upon approval; and

 

     (2)  Making technical, nonsubstantive amendments to conform the measure to the preferred drafting style.

 

     As affirmed by the records of votes of the members of your Committees on Economic Development and Taxation and Water, Land, Agriculture, and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1923, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1923, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Economic Development and Taxation and Water, Land, Agriculture, and Hawaiian Affairs,

 

____________________________

RUSSELL S. KOKUBUN, Chair

 

____________________________

CAROL FUKUNAGA, Chair