Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 814
                                     H.D. 1

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


     Your Committee on Water and Land Use, to which was referred
H.B. No. 814 entitled: 


begs leave to report as follows:

     The purpose of this bill is to authorize the governor to
provide tax breaks and land lease incentives to assist high
technology industries that provide jobs for the people of Hawaii.  

     Your Committee received testimony as follows:

     1.   High Technology Development Corporation, in support; 

     2.   Office of Hawaiian Affairs, in opposition; and

     3.   Department of Business, Economic Development, and
          Tourism, and Estate of James Campbell, offering

     Your Committee finds that the high technology industry
offers tremendous opportunities for job creation and synergy with
existing information infrastructure, but the Committee on Finance
might also consider offering the same incentives to existing high
businesses, in order to address the issue of equity.  As an
alternative to $1-per-year leases, the Committee on Finance might
also consider leases of property at fair market value.  

     Your Committee revised the bill by:  

     1.   Changing the lease amounts charged to high technology
          businesses on public lands from $1 per year to an
          unspecified amount; and 

                                 STAND. COM. REP. NO. 563
                                 Page 2

     2.   Making technical, non-substantive changes for the
          purposes of style and clarity.  

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 814, as amended herein, and recommends that it be referred to
the Committee on Finance, in the form attached hereto as H.B. No.
814, H.D. 1.

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

                                   Romy M. Cachola, Chair