STAND. COM. REP. NO. 1457

Honolulu, Hawaii

RE:    H.B. No. 338

       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 Ways and Means, to which was referred H.B. No. 338, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

     The purpose of this measure is to require the Employees' Retirement System to consider Hawaii venture capital investment opportunities whenever evaluating venture capital investments as appropriate vehicles in which to invest the funds of the system.

     Furthermore, this measure appropriates funds to the Department of Business, Economic Development, and Tourism for a public-private university research commercialization partnership.

     Your Committee received comments in support of the measure from the Department of Business, Economic Development, and Tourism, the President of Hawaii Strategic Development Corporation, NovaSol, Oceanit, Pipeline Communications and Technology, Inc., International Venture Fund, Global Brain, Inc., 3D Innovations, Hawaii Science and Technology Council, Telehealthconnections, and concerned citizens.  Your Committee received comments from the Employees' Retirement System, Cardax Pharmaceuticals, Pacific LightNet, and several individuals.  Comments in opposition were received from a concerned citizen.

     Your Committee finds that the State's favorable economic climate presents a golden opportunity for the State to invest in its future.  This future is based on human resources and innovation capacity as manifested in Hawaii venture capital investments in the commercial development of research efforts.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 338, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair