STAND. COM. REP. NO. 411

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1025
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
H.B. No. 1025 entitled: 

     "A BILL FOR AN ACT RELATING TO THE KAKAAKO HIGH TECHNOLOGY
     ZONE,"

begs leave to report as follows:

     The purpose of this bill is to create a Kakaako high
technology zone.  

     Your Committee received testimony as follows:

     1.   Department of Taxation, Department of Business,
          Economic Development, and Tourism, Hawaii Community
          Development Authority, in support; 

     2.   Tax Foundation of Hawaii, in opposition; and

     3.   Estate of James Campbell, offering comment.  

     Your Committee finds that the high technology industry
offers tremendous opportunities for job creation and synergy with
existing information infrastructure.  Establishment of a high
technology park in Kakaako with appropriate incentives would help
Hawaii to capitalize on this burgeoning sector, but the Committee
on Finance might also consider offering the same incentives to
existing high tech parks and other similar projects, in order to
address the issue of equity.  In addition, the definition of the
term "high technology" may need clarification, in order to ensure
that the incentives are given in a manner that truly fulfills the
intent of the legislature.  

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,

 
                                 STAND. COM. REP. NO. 411
                                 Page 2

 
your Committee is in accord with the intent and purpose of H.B.
No. 1025 and recommends that it pass Second Reading and be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water and Land
                                   Use,



                                   ______________________________
                                   Romy M. Cachola, Chair