STAND. COM. REP. NO.408

Honolulu, Hawaii

, 2001

RE: S.B. No. 926

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 926 entitled:

"A BILL FOR AN ACT RELATING TO ENTERPRISE ZONES,"

begs leave to report as follows:

The purpose of this measure is to declare all businesses located in the existing enterprise zone at Barbers Point Naval Air Station to be "qualified businesses" eligible for certain tax incentives.

Your Committee received testimony in support of this measure from Hawaii Motorsports Center. The Department of Business, Economic Development, and Tourism submitted testimony in opposition.

Your Committee finds that with the closure of Barbers Point Naval Air Station, now partially redesignated as the Kalaeloa Redevelopment District (District), the State must encourage the development of economic activities within that region.

While the District has been declared an enterprise zone whose occupants are eligible for certain tax breaks, your Committee finds that much of the property in the District remains vacant and underutilized.

Your Committee supports the intent of this measure, which would extend the available uses within the District, to entice commercial enterprise and job creation within Kalaeloa. Your Committee amended this measure so as not to extend tax incentives to businesses located on lands still retained by the Navy.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 926, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 926, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation, Military Affairs and Government Operations,

____________________________

CAL KAWAMOTO, Chair