STAND. COM. REP. NO.3217
RE: H.B. No. 2454
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 2454, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO ENTERPRISE ZONES,"
begs leave to report as follows:
The purpose of this measure is to ease the qualifications for firms enrolled in the enterprise zone partnership as a result of the September 11th terrorist attacks, by altering the method of calculating the number of employees needed to meet the annual hiring requirements of the enterprise zone program. Additionally, this measure eliminates the use tax exemption for enterprise zone-qualified firms.
Testimony supporting this measure was received from the Department of Business, Economic Development, and Tourism.
Your Committee finds that these changes to the enterprise zone program could help minimize business failures and layoffs in the State. The elimination of the use tax exemption for enterprise zone-qualified firms removes the incentive to purchase supplies and equipment from out-of-state vendors, and is intended to encourage purchases from local vendors.
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. 2454, S.D. 1, and recommends that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
BRIAN T. TANIGUCHI, Chair