Report Title:

Enterprise Zones

Description:

Removes provisions that restrict telecommunications from being designated a qualified business for enterprise zone purposes. Effective 7/1/2030. (SD2)

THE SENATE

S.B. NO.

2269

TWENTY-SECOND LEGISLATURE, 2004

S.D. 2

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 as follows:

1. By amending the definition of "telecommunication services" to read:

""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[.], unless the delivery of a majority of the services of a qualified business is within the enterprise zone where the qualified business is established or to consumers in other enterprise zones."

2. By amending the definition of "qualified business" to read:

""Qualified business" means any corporation, partnership, or sole proprietorship authorized to do business in the State that is qualified under section 209E-9, subject to the state corporate or individual income tax under chapter 235, and [[]is[]]:

(1) Engaged in manufacturing, the wholesale sale of tangible personal property as defined in section 237-4 or a service business as defined in this chapter;

(2) Engaged in producing agricultural products where the business is a producer as defined in section 237-5;

(3) Engaged in research, development, sale, or production of all types of genetically-engineered medical, agricultural, or maritime biotechnology products; [or]

(4) Engaged in producing electric power from wind energy for sale primarily to a public utility company for resale to the public[.]; or

(5) Engaged in a service business within an enterprise zone providing services the majority of which shall be delivered in the same enterprise zone or to other enterprise zones."

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 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[.] except where the majority of the services are delivered to and sold in the same enterprise zone or in other enterprise zones. Any services rendered outside an enterprise zone where the qualified business is established shall not be deemed to be the services of a qualified business[.] unless the majority of services are rendered, delivered, and sold within other enterprise zones."

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 Statutory material to be repealed is bracketed and stricken.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

SECTION 5. This Act shall take effect July 1, 2030.