STAND. COM. REP. NO. 235

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1353
                                     




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

Sir:

     Your Committee on Higher Education, to which was referred
H.B. No. 1353 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR THE MARINE
     BIOPRODUCTS ENGINEERING CENTER,"

begs leave to report as follows:

     The purpose of this bill is to appropriate funds for the
Marine Bioproducts Engineering Center (MarBEC) at the University
of Hawaii at Manoa.

     The University of Hawaii testified in support of the intent
of the bill.

     Your Committee recognizes that the diversity of marine life
indicates that various new high-value bioproducts may be
discovered, developed, and commercialized, leading to a
potentially significant contributor to the economic development
of Hawaii.  To exploit this exciting area, MarBEC was established
to support a multidisciplianry cooperative effort among
engineering, marine, and biological sciences.  

     The budget of MarBEC from the National Science Foundation
(NSF) for the first five years is $12,400,000. On the average,
about 60 percent of the budgets of NSF engineering research
centers is equally supported by NSF and the industry. The rest is
provided by other federal agencies, the host university, and
other sources. As such, there is a requirement of cost sharing
for fiscal year 1999-2000. This bill appropriates $1,000,000 as

 
 
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start-up funds, as well as $720,000 in salaries, for the State's
share of the costs.

     As affirmed by the record of votes of the members of your
Committee on Higher Education that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 1353 and recommends that it pass Second Reading and be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Higher Education,



                                   ______________________________
                                   DAVID MORIHARA, Chair