REPORT TITLE:
High Technology


DESCRIPTION:
Provides a two-year authorization to the governor to provide tax
breaks and land lease incentives to assist high technology
industries that provide jobs for the people of Hawaii.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            814         
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE ECONOMY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that there is a need to
 
 2 diversify Hawaii's economy.  As a nonpolluting, multi-billion
 
 3 dollar industry, high technology has the capability to help
 
 4 diversify Hawaii's economic base.
 
 5      As one of the fastest growing industries in the nation, a
 
 6 viable and stable high technology industry would help to
 
 7 diversify the economy, bring new business into the State, and
 
 8 provide high quality jobs and job opportunities in Hawaii.  A
 
 9 strong high technology industry would improve the quality of jobs
 
10 and provide higher income and utilization of skilled human
 
11 resources.  As a result, a strong high technology industry would
 
12 also improve the standard of living in the State and strengthen
 
13 Hawaii's competitiveness in national and world markets.
 
14      The legislature also recognizes that technology and
 
15 industrial innovation are also essential to the economic,
 
16 environmental, and social well-being of the people of Hawaii.
 
17 Therefore, it would be highly advantageous to encourage the
 
18 development of high technology in the State by providing
 
19 incentives to encourage high technology businesses to locate to
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 Hawaii.
 
 2      The legislature declares that it is in the public interest
 
 3 to support high technology development in the State.
 
 4      The purpose of this Act is to demonstrate Hawaii's
 
 5 commitment to strengthening the development of the high
 
 6 technology industry in the State by providing incentives to
 
 7 encourage high technology businesses to locate their operations
 
 8 in the State.  This Act provides a two-year authorization to the
 
 9 governor to provide tax breaks and land lease incentives to
 
10 assist high technology industries that provide jobs for the
 
11 people of Hawaii.
 
12      SECTION 2.  Notwithstanding any law to the contrary, the
 
13 governor may assist high technology businesses by:
 
14      (1)  Setting aside public lands for use by businesses that
 
15           conduct high technology activities in the State.  The
 
16           governor may provide $1-a-year leases to high
 
17           technology businesses that operate on public lands.
 
18           Each lease shall be for a term of      years;
 
19      (2)  Exempting businesses conducting high technology
 
20           activities within the State from the payment of the
 
21           general excise tax under chapter 237.  The governor
 
22           shall determine the amount of exemption of the general
 
23           excise tax to high technology businesses; and
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1      (3)  Providing a state business tax credit for businesses
 
 2           conducting high technology activities within the State.
 
 3           The governor shall determine the amount of the tax
 
 4           credit to high technology businesses;
 
 5 provided that any business receiving assistance pursuant to this
 
 6 Act shall provide at least     new jobs for the people of Hawaii.  
 
 7      For purposes of this section:
 
 8      "High technology" means emerging industries that are
 
 9 technology-intensive, including but not limited to electronics,
 
10 biotechnology, and software development.
 
11      "New job" means the addition of a position that increases an
 
12 employer's workforce by one full-time person.
 
13      SECTION 3.  This Act shall take effect upon its approval and
 
14 shall be repealed two years from its effective date.
 
15 
 
16                           INTRODUCED BY:  _______________________