STAND. COM. REP. NO.  1409

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 907

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 907, S.D. 2, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to position Hawaii to take part in the aerospace industry by:

(1)  Renaming the Office of Space Industry, the Office of Aerospace Development (Aerospace Office);

     (2)  Expanding the duties of the Aerospace Office to include the identification and promotion of opportunities for expanding and diversifying aerospace-related industries in the state; and

     (3)  Appropriating funds to operate the Aerospace Office and establish and operate a Pacific International Space Center for Exploration Systems (PISCES).

     The University of Hawaii at Hilo, former Governor George Ariyoshi, Space Portal, ROCKETPLANE KISTLER INC., Japan-United States Science, Technology and Space Applications Program, JAMSS America, Inc., Enterprise Honolulu, SpacePartnerships.com, Hawaii Island Economic Development Board, Inc., and many concerned individuals testified in support of this bill.  The Department of Business, Economic Development, and Tourism, commented.

     In 2005, Congress ratified the National Aeronautics and Space Administration's Vision for Space Exploration in Public Law 109-155, which directs NASA to work closely with the private sector to:

[E]stablish a program to develop a sustained human presence on the Moon, including a robust precursor program, to promote exploration, science, commerce, and United States preeminence in space, and as a stepping-stone to future exploration of Mars and other destinations.

     This bill seeks to position Hawaii for participation in this endeavor, and to capitalize on characteristics that make Hawaii an ideal location for an aerospace industry:  its mid-Pacific, near equatorial location, volcanic terrain, long-standing ties with Asia-Pacific nations, and resident expertise in space-related fields.

     Your Committee understands that one version of this bill requested funds for a Federal Aviation Administration commercial spaceport license for shuttle flights out of Honolulu International Airport.  Your Committee respectfully requests the Committee on Finance, to which this bill has been referred, to examine the availability of funding for this license, and for the other requests under this bill.

     To encourage further discussion of the measure your Committee has changed its effective date to July 1, 2034.  Technical, nonsubtantive amendments were also made for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 907, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 907, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair