STAND. COM. REP. NO.  1735

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 242

      S.D. 2

      H.D. 2

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 242, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO SEAWATER AIR CONDITIONING,"

 

begs leave to report as follows:

 

     The purpose of this bill is to support efforts to produce air conditioning from seawater air conditioning district cooling systems by allowing these businesses to qualify for tax and other regulatory benefits under the Enterprise Zone Program.

 

     The Hawaii Building and Construction Trades Council, AFL-CIO supported this measure.  The Department of Business, Economic Development, and Tourism and Department of Taxation opposed this bill.  Honolulu Seawater Air Conditioning, LLC, and Tax Foundation of Hawaii offered comments.

 

     Your Committee has amended this bill by:

 

     (1)  Specifying that gross proceeds received by a contractor relating to the construction of a seawater air conditioning district cooling system shall not be exempt from the general excise tax; and

 

     (2)  Making technical, nonsubstantive amendments for consistency and clarity.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 242, S.D. 2, H.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, H.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

		____________________________ MARCUS R. OSHIRO, Chair