STAND. COM. REP. NO. 813
RE: S.B. No. 242
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 242, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO SEAWATER AIR CONDITIONING,"
begs leave to report as follows:
The purpose of this measure is to exempt businesses in a state enterprise zone that produce air conditioning from seawater from the general excise tax.
Specifically, this measure:
(1) Includes companies that produce air conditioning from a seawater air conditioning district cooling system as a "qualified business" in a state enterprise zone; and
(2) Pursuant to the enterprise zone law, exempts qualified businesses that produce air conditioning from a seawater air conditioning district cooling system from the payment of general excise taxes.
Your Committee received one written comment on this measure. The written comment may be reviewed on the Legislature's website.
Your Committee finds that the construction and operation of the proposed downtown Honolulu seawater air conditioning district cooling system project has the potential to create many jobs and result in increased spending in the local economy. In addition to these economic benefits, this project is expected to reduce the amount of electricity used for air conditioning by downtown businesses and residents and reduce the quantity of fuel imported into the State to generate electricity. This is predicted to create significant cost savings for Hawaii's economy. This measure will assist the downtown Honolulu seawater air conditioning project to achieve these objectives and to acquire tax incentives in a state enterprise zone.
Your Committee has amended this measure by:
(1) Changing the effective date to January 1, 2050, to facilitate further discussion on this measure; and
(2) Making technical nonsubstantive amendments for the purposes of clarity, consistency, 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. 242, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 242, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONNA MERCADO KIM, Chair