STAND. COM. REP. NO. 928

Honolulu, Hawaii

, 2005

RE: S.B. No. 1879

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1879, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE ENTERPRISE ZONES,"

begs leave to report as follows:

The purpose of this measure is to address the unique circumstances of agricultural businesses.

Specifically, this measure:

(1) Establishes that agricultural businesses shall remain eligible for tax incentives in the event of force majeure;

(2) Allows agricultural businesses to meet annual gross revenue requirements if the businesses are unable to meet annual full-time employee requirements;

(3) Clarifies the definition of "full-time employee" by including leased employees and employees under a joint employer relationship; and

(4) Clarifies that enterprise zone firms cannot claim the same tax credits or exemptions in other tax incentive programs.

Your Committee finds that agricultural businesses face many unique challenges and may start with little financial support. This measure provides an important and necessary step in allowing farmers to benefit from incentives that are allowed under state law but that may not otherwise be available to farmers. Farmers first need to make investments in equipment and infrastructure to grow their business without having the stress of meeting the additional hiring or other requirements required by the State's incentives until the business can afford additional hires.

Upon further review, your Committee amended this measure by making technical nonsubstantive amendments for clarity and style.

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 S.B. No. 1879, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1879, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair