Report Title:

Economic Zone Commission; Established

Description:

Establishes an economic zone commission to designate and support economic zones and economic recovery zones such as Waipahu.

HOUSE OF REPRESENTATIVES

H.B. NO.

1522

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to economic recovery.

 

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

SECTION 1. The legislature finds that communities such as Waipahu on Oahu and the Hamakua coast on Hawaii have struggled as a result of the closing of several businesses. The legislature further finds that by targeting these areas for strategic support and revitalization, the overall welfare of communities will improve and businesses on the edge of collapse may be saved.

One such way government can assist with strategic support and revitalization is by establishing an economic zone commission to identify areas in need of economic improvement and empowering that commission to implement initiatives to bring about positive economic change by bolstering existing businesses and attracting new businesses. Such a commission would designate economic zones to provide preventative programs for business areas that could potentially take a turn for the worse should the economy change sharply, and economic recovery zones to provide revitalization programs for devastated businesses in areas such as Waipahu to help get them back on their feet. For each zone, the commission would develop and coordinate economic stimulus policies and programs, the core of which would be recommended tax incentives for enactment by the legislature that will attract new businesses to the zones and to improve existing businesses within the zones. Programs for both zones would include tailored tax breaks, real estate incentives, and other support for businesses.

The purpose of this Act is to establish an economic zone commission that maintains a balance between state and local government in an effort to revitalize the weaker economic areas of the State with various tax incentives.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"chapter

Economic zone COMMISSION

§   -1 Economic zone commission; established. (a) There is established within the department of business, economic development, and tourism for administrative purposes, an economic zone commission.

(b) The commission shall consist of eight members each appointed by the governor from lists submitted by the mayors of the city and county of Honolulu and the counties of Hawaii, Maui, and Kauai; the city council of Honolulu and the county councils of Hawaii, Maui, and Kauai; president of the senate; speaker of the house of representatives; senate minority leader; and house minority leader, pursuant to section 26-34. The governor shall appoint two members from the mayors' lists, two members from the city councils' lists, and one member from each of the other lists. The commission members shall elect a chair from among themselves; provided that should the commission be unable to designate a chair, the governor shall select the chair from among the commission members.

(c) The members of the economic zone commission shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(d) The economic zones commission shall submit an annual report to the legislature on its progress and any recommendations for legislative action no later than twenty days prior to the convening of each regular session. Copies of the annual reports shall be made available to interested community groups.

§   -2 Commission functions. The commission shall perform the following functions:

(1) Identify geographic business areas in need of specialized economic support or revitalization;

(2) Establish criteria for determining what constitutes an economic zone versus an economic recovery zone;

(3) Designate the identified business areas as either economic zones that could use moderate economic support to bolster existing businesses and attract new businesses, or as economic recovery zones that are in need of drastic and overall economic revitalization; and

(4) Develop and coordinate tailored and measurable economic stimulus policies and programs for the economic recovery zones and economic zones, the core of which shall be tax breaks and incentives recommended by the commission for enactment by the legislature to attract new businesses to the zones and to bolster existing businesses."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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