STAND. COM. REP. NO. 1325

Honolulu, Hawaii

RE:    H.B. No. 1083

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Economic Development and Taxation, to which was referred H.B. No. 1083, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HIGH TECHNOLOGY,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Authorize the High Technology Development Corporation to negotiate a ten-year lease to construct the Asia Pacific International Research Center for High Technology in Kakaako; and

     (2)  Appropriate an unspecified amount for this purpose.

     Testimony in support of this measure was received from the High Technology Development Corporation; Hawaii Community Development Authority; University of Hawaii, John A. Burns School of Medicine; the Office of Technology Transfer and Economic Development; Hawaii Science and Technology Council; The Pacific Resource Partnership; Kamehameha Schools; KUD International and Phase 3 Properties; Cardax Pharmaceuticals, Inc.; and Honolulu Seawater Air Conditioning, LLC.

     Your Committee is supportive of the development of incubator and specialized laboratory space, particularly near the medical school.  Your Committee members are concerned, however, about potential costs to the State related to the ten-year lease guaranty and a potentially large-scale financial commitment.

     Your Committee previously heard and approved S.B. No. 896, S.D. 1, which is a substantially similar measure.  Your Committee has amended this measure to incorporate provisions of S.B. No. 896, S.D. 1, by:

     (1)  Substituting the language in sections 1 and 2 with the language in sections 1 and 2 of S.B. No 896, S.D. 1, which:

          (A)  Replaces all references to the named developers of the complex with the generic term "developers";

          (B)  Replaces all references to the "Asia Pacific International Research Center" with "life sciences research complex"; and

          (C)  Clarifies that the State's portion would be for a "high technology incubator and innovation center" in Kakaako; and

     (2)  Deleting section 3, which details issues to be considered in the negotiations; and

     (3)  Changing the lease agreement from ten years to five years throughout.

     Your Committee has also inserted an effective date of July 1, 2050, for the purposes of furthering discussion.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1083, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1083, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,

____________________________

CAROL FUKUNAGA, Chair