STAND. COM. REP. NO. 145

Honolulu, Hawaii

RE:    S.B. No. 323

       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 S.B. No. 323 entitled:

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

begs leave to report as follows:

     The purpose of this short form bill is to amend the law relating to high technology.

     Your Committee has amended this bill by inserting provisions related to the High Technology Development Corporation to:

     (1)  Amend section 206M-15.5, Hawaii Revised Statutes, to provide that the High Technology Special Fund shall not be used to fund general administrative and fiscal positions, which shall be funded through the general revenues of the State; and to delete the $3,000,000 cap in the special fund;

     (2)  Amend section 206M-53, Hawaii Revised Statutes, to clarify that the High Technology Innovation Corporation is authorized to operate bank accounts that are necessary for the conduct of its business in addition to its out-of-state offices, at both in-state and out-of-state bank locations; and

     (3)  Continue current funding levels for the Hawaii Small Business Innovation Research Grant Program and the Hawaii Small Business Technology Transfer Program.

     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 S.B. No. 323, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 323, S.D. 1, and be recommitted to the Committee on Economic Development and Taxation, for further consideration.

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

____________________________

CAROL FUKUNAGA, Chair