CONFERENCE COMMITTEE REPORT NO.113

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2420
                                  S.D. 2
                                  H.D. 2
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2420, S.D. 2, H.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO TECHNOLOGY,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this bill is to:

     (1) Allow the sale of net operating losses and amend the
         various income tax incentives enacted last year for
         technology-based businesses;

     (2) Appropriate funds for educational programs under the
         Department of Education, the Pacific Center for Advanced
         Technology Training, and the University of Hawaii;

     (3) Exempt the members of the Governor's Special Advisory
         Council for Technology Development from the Senate

 
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         confirmation process and from the need to file a
         disclosure of financial interests with the State Ethics
         Commission;

     (4) Develop partnerships between the Hawaii Tourism
         Authority and Hawaii's business community to promote the
         State as a place to do high technology business;

     (5) Give increased autonomy and authority to the High
         Technology Development Corporation (HTDC) over its
         fiscal and personnel matters;

     (6) Establish the Hawaii Venture Capital Technology
         Revolving Fund;

     (7) Require HTDC to establish programs for seed capital
         assistance, venture capital assistance, and capital
         access;

     (8) Provide that an appointed member from HTDC, the Natural
         Energy Laboratory of Hawaii Authority (NELHA), and the
         Hawaii Strategic Development Corporation (HSDC) serve on
         each others' boards;
  
     (9) Require the Department of Business, Economic
         Development, and Tourism (DBEDT) and HTDC to report on
         the Hawaii Capital Loan Program; and

    (10) Clarify that the ERS may invest in Hawaii high
         technology businesses or venture capital investments.

     Your Committee on Conference has amended this bill by:

     (1) Deleting the substantive contents of this bill and
         replacing it with the substantive contents of S.B.
         No. 2420, S.D. 2, which establishes the New Economy
         Technology Scholarship Program (Program) on a pilot
         basis;

     (2) Inserting the appropriation amount of $200,000 to
         establish and implement the Program;

     (3) Providing that DBEDT shall award a scholarship in an
         amount up to $2,000 per academic year; and

     (4) Deleting references to the Hawaii Workforce Development
         Council, Pell grants, and other state grants.


 
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     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2420, S.D. 2, H.D. 2, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 2420, S.D. 2, H.D. 2, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE
                                   
                                   
                                   
                                   
______________________________     ______________________________
ROBERT N. HERKES, Co-Chair         DAVID Y. IGE, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
DAVID MORIHARA, Co-Chair           CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Co-Chair       BRIAN KANNO, Co-Chair
                                   
                                   
                                   
                                   
                                   ______________________________
                                   LORRAINE R. INOUYE, Co-Chair

 
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