Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 2181 entitled:

begs leave to report as follows:

The purpose of this bill is to develop existing economic and natural resources into innovative, profit-generating, and efficient entities by creating the Hawaii Innovations Fund (Fund) and the Fund Community Board within the University of Hawaii (UH). The Fund will be used to fund grants to individuals or businesses engaged in research or product development in the life sciences or advanced technology fields.

UH, The High Technology Development Corporation, UH Connections, Office of Hawaiian Affairs, Hawaii Science & Technology Council, NovaSol, Referentia Systems, PacifiCap, Trex Enterprises Corporation, and Enterprise Honolulu testified in support of this bill. The Department of Business, Economic Development, and Tourism, Hawaii Strategic Development Corporation, and Hawaii Technology Development Venture supported the intent of this measure.

Your Committee recognizes that investments in high technology research and development can positively impact the state's economy. Managing investments and the resulting enterprises must be done cautiously and with the best interest of the state in mind.

Accordingly, your Committee has amended this bill by deleting its content and replacing it with provisions that:

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2181, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2181, H.D. 1, and be referred to the Committee on Finance.