Report Title:

Enterprise Zones

Description:

Removes provisions that restrict telecommunications from being designated a qualified business for enterprise zone purposes. (HB2191 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2191

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to enterprise zones.

 

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

SECTION 1. The purpose of the state enterprise zones program is to "stimulate business and industrial growth in areas which would result in neighborhood revitalization" through regulatory flexibility and tax and other incentives. Attracting private sector investment in order to create, preserve, and increase jobs is critical to the growth of Hawaii's business community. The current state enterprise zones program, while admirable in its intent, does not meet the needs of newer industries interested in locating and investing in Hawaii.

The purpose of this Act is to remove provisions that restrict the allowable enterprise zones program business activity, telecommunication services, from being designated as a "qualified business" under the program.

SECTION 2. Section 209E-2, Hawaii Revised Statutes, is amended by amending the definition of "telecommunication services" to read as follows:

""Telecommunication services" means terrestrial (copper and optical fiber cable) and satellite information delivery systems, switching systems, ground stations, and call centers[, but not consumer services]."

SECTION 3. Section 209E-9, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Tangible personal property shall be sold at an establishment of a qualified business within an enterprise zone and the transfer of title to the buyer of the tangible personal property shall take place in the same enterprise zone in which the tangible personal property is sold. Services shall [be sold] originate or be processed at an establishment of a qualified business engaged in a service business within an enterprise zone [and the services shall be delivered in the same enterprise zone in which sold. Any services rendered outside an enterprise zone shall not be deemed to be the services of a qualified business]."

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 Statutory material to be repealed is bracketed and stricken.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, 2010.