STAND. COM. REP. NO. 1595

Honolulu, Hawaii

, 2005

RE: S.B. No. 1698

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1698, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this bill is to support Hawaii's growing technology sector by:

(1) Providing tax credits for contributions of money, goods, or in-kind services for the establishment and maintenance of technology laboratories in public schools; and

(2) Appropriating funds for grants to the Economic Development Alliance of Hawaii, Inc. (Alliance), to:

(A) Coordinate marketing of Hawaii's technology companies and opportunities on the United States mainland; and

(B) Expand its Project EAST program to four additional schools.

The Office of Economic Development for the County of Kauai, Hawaii Island Economic Development Board, Inc., Kauai Economic Development Board, Alliance, Enterprise Honolulu, Maui Economic Development Board, Inc., and several concerned individuals supported this bill. The Department of Business, Economic Development, and Tourism and Department of Education supported the intent of this measure. The Department of Taxation opposed this bill. The Tax Foundation of Hawaii provided comments.

Your Committee has amended this bill by:

(1) Removing the tax credit for contributions to school technology laboratories; and

(2) Making technical, nonsubstantive changes for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1698, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1698, S.D. 2, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT TAKAMINE, Chair