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. 1701 entitled:

beg leave to report as follows:

The purpose of this measure is to appropriate matching state funds as a grant-in-aid to Enterprise Honolulu to conduct its targeted business development project.

Testimony in support of this measure was submitted by Enterprise Honolulu.

Your Committees find a significant need for new career opportunities, more living wage jobs, and globally competitive industries in the State. The most successful proven models have been public-private partnerships in which direct business-to-

business contacts are cultivated and recruitment is targeted toward those industries, such as defense dual use technologies, ocean sciences, film and digital media, information and communications technology, and life sciences, that are most conducive to economic development appropriate to our island culture. Creating an effective public-private partnership will make a substantial difference in closing the current wage gap. For example, life sciences is a multibillion dollar industry that involves research, development, and commercialization of drugs and medical devises. The University of Hawaii medical school is a tangible symbol of the movement to diversify Hawaii's economy through newly-emerging science industries. Your Committees believe that this measure will enable Enterprise Honolulu to achieve its goals of increasing the number of high paying jobs, diversifying Hawaii's economy, creating new investments and new wealth, increasing tax revenues, and benefiting all communities through its targeted business development project.

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. 1701 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.