HIGH TECH FIRM SUFFERS LOSS OF FUNDING

Seventeen of the 19-member House minority have rejected two bills that would have greatly helped one of Hawaii's leading high-tech firms with its expansion plans. House Bills 1149 and 872 would have authorized the State to issue special purpose revenue bonds to assist Science and Technology International (STI), a Hawaii-based optical imaging company that develops technology with a broad range of military, scientific and commercial uses.

The 20-year-old company had hoped to obtain financing to expand its growing business by constructing its new headquarters in Kakaako and building a processing plant for freeze-dried coffee.

"This is a perfect example of the minority members misusing their newfound power," said Majority Leader Marcus Oshiro (D-40^th District, Wahiawa-Whitmore Village), "It is extremely unfortunate that they decided to make their presence known by rejecting these bills."

The State Constitution requires that bills authorizing the issuance of special purpose revenue bonds achieve passage with a two-thirds vote. House Republicans now have more than one-third of the votes on the House floor.

"It was a perfect opportunity for the minority," said Vice Speaker Sylvia Luke (D-26^th District, Nuuanu-Dowsett Highlands-Pacific Heights-Pauoa-Punchbowl). "But based on the bills they targeted, it is obvious that they are not concerned about the merits of the bills. They simply wanted to make a point."

"They picked on a highly respected local company that wants to expand the State's high tech presence. STI is making a conscious effort to hire local graduates, and it is even trying to attract former residents. They want to provide more high tech jobs in this State," Oshiro said.

"If the minority wants to claim this as a victory, then there must be a loser. In this case, it's the entire State," he added.

Luke said that if the rationale for rejecting these bills was that State monies should not be used for these types of projects, they should have done their homework. "They would have learned that these bills would not commit any State funds. Special purpose revenue bonds are not secured by the full faith and credit of the State. They don't count against the State's debt ceiling either," she said.

The State Constitution allows the Legislature to authorize the issuance of special purpose revenue bonds to assist health care facilities, manufacturing enterprises, processing enterprises, industrial enterprises, and certain types of utilities. The bonds are paid back by the private entity.

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