Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Media, Arts, Science, and Technology and Business and Economic Development, to which was referred S.B. No. 1702 entitled:

beg leave to report as follows:

The purpose of this measure is to establish the High Technology Innovation Corporation, an attached nonprofit subsidiary of the High Technology Development Corporation.

Testimony in support of this measure was submitted by the High Technology Development Corporation, and eight individuals, including six members of the High Technology Development Corporation's board of directors. Your Committees received testimony in opposition to the measure from the Department of Business, Economic Development, and Tourism.

Your Committees understand that the board of directors of the High Technology Development Corporation supports this measure and, after months of discussion and investigation, has formally adopted a policy to organize such a nonprofit subsidiary, which the board considers its top priority. Your Committees find that establishing the High Technology Innovation Corporation will:

Your Committees believe this measure will further the State's goal of nurturing and supporting its technology sector while reducing the State's cost for doing so.

As affirmed by the records of votes of the members of your Committees on Media, Arts, Science, and Technology and Business and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1702 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.