Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Economic Development & Business Concerns and Higher Education, to which was referred H.B. No. 3261 entitled:

beg leave to report as follows:

The purpose of this bill is to support and nurture Hawaii's talented intellectual community by establishing the Hawaii Ingenuity Corporation, a single entity to be responsible for:

(1) Holding and using intellectual and other property;

(2) Raising labor and environmental standards;

(3) Promoting innovation;

(4) Attracting inventors to Hawaii;

(5) Assisting inventors with businesses; and

(6) Collectively bargaining on behalf of inventors.

The Hawaii State AFL-CIO; American Ingenuity Alliance; Hawaii Alliance for Community Based Economic Development; KMH LLP; Entec Engine Corporation; American Federation of Television and Radio Artists: AFTRA, AFL-CIO; Professional Inventors Alliance; and several concerned individuals testified in support of this bill. The Hawaii State Teachers Association supported the intent of this measure. The Office of Information Practices offered comments.

Your Committees recognize that promoting innovation and supporting local inventors and creators of intellectual property contribute much to Hawaii's economy. However, a majority of inventors lack the resources to protect their intellectual property rights. The establishment of a single body to oversee the use of intellectual property as well as foster continued innovation will benefit the entire state.

As affirmed by the records of votes of the members of your Committees on Economic Development & Business Concerns and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 3261 and recommend that it pass Second Reading and be referred to the Committee on Finance.