Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Science, Art and Technology and Economic Development, to which was referred S.B. No. 1249 entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the Hawaii Technology Development Corporation to provide state matching grants to entities that receive federal Small Business Technology Transfer grants.

Testimony in support of this measure was submitted by the High Technology Development Corporation, the Hawaii Venture Capital Association, and the Hawaii Technology Trade Association.

Your Committees find that one of the primary impediments to expansion of high technology small businesses is the lack of available venture capital for these businesses to use in the areas of research and development. Your Committees further find that the State and federal governments have made limited funds available to capitalize research and development activities in this regard. Your Committees agree that the federal Small Business Technology Transfer grant program is an additional source of venture capital that should be pursued by Hawaii small businesses that are ready to transfer their product design into production for commercial applications.

Your Committees have amended this measure by inserting federal Small Business Technology Transfer grant awards within the existing provisions of law providing state matching grants to federal Small Business Innovation Research grants awardees, as the intent is for them to be treated similarly by the High Technology Development Corporation.

As affirmed by the records of votes of the members of your Committees on Science, Art and Technology and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1249, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1249, S.D. 1, and be referred to the Committee on Ways and Means.