STAND. COM. REP. NO. 3334

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2901
                                        H.D. 2
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
H.B. No. 2901, H.D. 2, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE NEW ECONOMY,"

begs leave to report as follows:

     The purpose of this measure is to encourage the continued
growth and development of high technology businesses and
associate industries through a variety of means, including tax
credits, provisions for additional sources of venture capital,
continued funding for initiatives begun with Act 178, Session
Laws of Hawaii 1999, marketing Hawaii as a technology friendly
tourism location, and the creation of a technology investment
program for small investors.

     Your Committee finds that technology and related businesses
have responded positively to the initiatives created under Act
178, and that this measure will continue the momentum generated
as a result.  Your Committee notes that the tax credits in
particular have created considerable interest in the technology
industry, and will enable Hawaii to attract new enterprises, such
as the expanded biotechnology niche, which are included in the
tax credit provisions.

     Your Committee has amended this measure to:

     (1)  Change the name of the program for small investors to
          the Hawaii Technology Investment Program;

 
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                                   STAND. COM. REP. NO. 3334
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     (2)  Create a new economy trust fund to support public
          education, innovative projects that expand access to
          technology, workforce development initiatives
          emphasizing skills-building, and other projects
          designated by the legislature;

     (3)  Delete the appropriations to continue various
          initiatives under Act 178 and incorporate the concepts
          of these initiatives in the new economy trust fund;

     (4)  Amend the purpose section to reflect the additions and
          changes;

     (6)  Appropriate an unspecified amount from the new economy
          trust fund;

     (7)  Appropriate an unspecified amount to the high
          technology development corporation; and

     (6)  Make technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
H.B. No. 2901, H.D. 2, S.D. 1, as amended herein, and recommends
that it pass Third Reading in the form attached hereto as
H.B. No. 2901, H.D. 2, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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