STAND. COM. REP. NO. 1154

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 716
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Economic Development and Business
Concerns and Tourism, to which was referred S.B. No. 716
entitled: 

     "A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY
     LABORATORY,"

beg leave to report as follows:

     The purpose of this bill is to allow the Natural Energy
Laboratory of Hawaii Authority (Authority) to include retail and
commercial enterprises utilizing or supporting the utilization of
natural resources or geothermal energy within the Authority's
research and technology park.

     In addition, this bill:

     (1)  Eliminates the restriction on the number and kinds of
          concession and tour-related activities that can be
          conducted by the Authority to financially support the
          research, development, and commercialization of natural
          energy resources at the research and technology park;

     (2)  Requires the Authority to establish, manage, and
          operate facilities that provide sites for compatible
          businesses engaged in retail, commercial, or tourism
          activities;

     (3)  Eliminates the restriction on the number and kinds of
          concession and tour-related activities that can be

 
 
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          conducted by the Authority to financially support
          itself other than the research, development, and
          commercialization of natural energy resources at the
          research and technology park;

     (4)  Allows the Authority to support the commercialization
          of natural resources available at the research and
          technology park if their commercialization is
          compatible with the retail, commercial, and tourism
          activities of the park; and

     (5)  Allows the Authority to attract new, appropriate
          retail, commercial, and tourism uses of natural
          resources in Hawaii.

     Your Committee finds that the Authority operates one of the
premier facilities in the world for the research, development,
and commercialization of aquaculture and natural energy
resources.  While much of the finding for this work has
previously come from the state and federal government funds,
these have been greatly reduced and other sources of income must
be developed.  Your Committee also finds that the Authority has
explored a variety of options to increase private investment in
its facility, and that retail concession activities have the
potential to generate significant additional revenues and to
reduce the Authority's dependency on public funding.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Business Concerns and
Tourism that are attached to this report, your Committees are in
accord with the intent and purpose of S.B. No. 716 and recommend
that it pass Second Reading and be referred to the Committee on
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Business
                                   Concerns and Tourism,

                                   
                                   
                                   
                                   
______________________________     ______________________________
JERRY L. CHANG, Chair              ROBERT N. HERKES, Chair