Report Title:

Industry Tracking Program; DBEDT; Tax Credit for Participation

Description:

Requires the Department of Business, Economic Development and Tourism (DBEDT) to establish an industry tracking program whereby businesses provide relevant information to DBEDT to track and evaluate business industries. Provides a tax credit for businesses that participate in the industry tracking program.

HOUSE OF REPRESENTATIVES

H.B. NO.

1451

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to economic data.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the "New Economy" is a knowledge- and idea-based economy where the key to higher standards of living and job creation is the extent to which innovative ideas and technologies are embedded in services, products, and manufacturing processes. Its characteristics include an increase in knowledge-based jobs, higher levels of entrepreneurial dynamism and competition, faster times to market, increased product and service diversity, constant technological innovation, globalization, the replacement of hierarchical organization structures with networked learning organizations, and relentless economic churning. As Hawaii embarks on its aggressive economic agenda, it is imperative that our entrepreneurs, investors, and business have the necessary tools to prosper in the New Economy.

The legislature further finds now more than ever that Hawaii's public policies and legislative initiatives must foster not only a positive business climate, but provide the necessary building blocks for competing in the New Economy. Workforce development, investing in our public schools and the University of Hawaii, creation of business incentives to further investment in high-technology companies, ensuring availability of investment capital, and modernizing government operations are essential acts that need to be further developed. The result will be an economic infrastructure and culture that breeds innovation, entrepreneurship, investment, creativity, and knowledge-based jobs that ultimately lead to higher wages, enhanced quality of life, and economic prosperity for Hawaii. The purpose of this Act is to create an industry tracking program that will encourage businesses to provide specific information about their business that will allow the governor, the legislature, and other government agencies to formulate and implement more effective public policy initiatives that will improve economic development in the State.

SECTION 2. Section 201-13.8, Hawaii Revised Statutes, is amended to read as follows:

"§201-13.8 Data or information collection. (a) The director, in consultation with all affected governmental agencies, shall assess the need for statistics and other information as to the number, characteristics, needs, and movement of people into, out of, or within Hawaii, including residents, migrants, and visitors, and such other information as the director may deem necessary, for the purposes of sound economic research and analysis. The director shall be responsible for collecting, analyzing, and disseminating such information to governmental agencies on a timely basis, and is authorized to use any appropriate method to collect the information, including but not limited to conducting an entry and exit census or survey of all individuals entering, leaving, or living within the State, and obtaining data or information acquired by other agencies, both public and private. All governmental agencies shall cooperate with and assist the director to implement this section.

(b) The department shall establish an industry tracking program that obtains, compiles, and analyzes data from participating businesses in a manner that comprehensively tracks the progress of various industry categories and the effects directly and indirectly caused by state policies and initiatives. The type of information the department shall collect and participating businesses shall provide includes, but is not limited to:

(1) The industry to which the participating business belongs and the nature of its business activities;

(2) Number of employees and their job descriptions, rate of pay, benefits, and employment status (full-time, part-time, contract, etc.);

(3) Annual revenues, profits, and losses and to which business activities they are attributed; and

(4) Any other information relevant for tracking and evaluating the industry to which the participating business belongs.

As used in this subsection, "participating business" means a business that participates in the industry tracking program.

[(b)] (c) To the extent that it is identifiable to an individual, information obtained by the department or its agents through surveys, questionnaires, or other information gathering efforts shall be held confidential and not disclosed or opened to public inspection, except that such information may be shared with other government agencies as provided in section 92F-19.

[(c)] (d) Public disclosure of information gathered by the department could place businesses at a competitive disadvantage. Consequently, where disclosure would result in the impairment of the department's ability to obtain such information and the frustration of a legitimate government function, the department may withhold from public disclosure competitively sensitive information including:

(1) Completed survey and questionnaire forms;

(2) Coding sheets; and

(3) Database records of such information.

[(d)] (e) The director may adopt necessary rules pursuant to chapter 91, to administer this section."

SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-    Industry tracking participation; tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an industry tracking participation tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter.

To qualify for the credit, the taxpayer shall be a participating business in the industry tracking program established by section 201-13.8(b).

(b) The amount of the credit shall be $25 multiplied by the number of full-time employees employed by the taxpayer on the last day of the taxable year.

(c) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the tax credit may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(d) Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claims for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(f) For purposes of this section,

"Full-time employee" shall have the same meaning as provided in section 209E-2."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2003; provided that section 3 of this Act shall apply to taxable years beginning after December 31, 2003.

INTRODUCED BY:

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