Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Media, Arts, Science, and Technology, to which was referred H.B. No. 1657, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds in the amount of $10,000,000 to assist Hoku Scientific with facility infrastructure and equipment for the company's core products.

Your Committee received testimony in support of this measure from Hoku Scientific. Your Committee also received comments on this measure from the Department of Budget and Finance.

In response to questions posed by your Committee, Hoku Scientific testified that:

Your Committee finds that Hoku Scientific is committed to developing technologies that provide alternate sources of clean and efficient energy that will diversify the local economy and provide highly skilled labor positions. Your Committee further finds that Hoku Scientific's fuel cell membrane technology, including a new membrane for use in Proton Exchange Membrane fuel cells, requires a specialized production facility and related equipment.

As affirmed by the record of votes of the members of your Committee on Media, Arts, Science, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1657, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.