STAND. COM. REP. NO. 15-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2044

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2044 entitled:

"A BILL FOR AN ACT RELATING TO SMALL BUSINESS DEVELOPMENT,"

begs leave to report as follows:

The purpose of this bill is to promote sustainable economic development by:

(1) Creating a franchise tax exemption for small business investment companies (SBICs) licensed by the United States Small Business Administration (SBA) to issue leverage; and

(2) Appropriating funds to:

(A) Expand management force development through consulting and training services at various Small Business Development Center sites;

(B) Establish two research positions at the Hawaii Business Research Library to increase access to information for small businesses statewide; and

(C) Establish a Hawaii Award of Excellence Center to train businesses statewide in continuous quality improvement.

The Small Business Development Council of Hilo offered testimony in support of this measure. The Department of Taxation offered comments on this measure.

According to the SBA's website, there were only two SBIC licensees located in Hawaii as of January 2, 2004. However, it is not the intent of your Committee to create a tax exemption for two particular entities. Therefore, your Committee respectfully requests the Committees on Higher Education and Finance to consult the Department of Taxation about appropriate language for the tax exemption in this bill.

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 H.B. No. 2044 and recommends that it pass Second Reading and be referred to the Committee on Higher Education.

 

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

 

____________________________

BRIAN SCHATZ, Chair