STAND. COM. REP. NO. 2978

Honolulu, Hawaii

RE:    H.B. No. 2259

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Economic Development and Taxation and Tourism and Government Operations, to which was referred H.B. No. 2259, H.D. 2, entitled:

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

beg leave to report as follows:

     The purpose of this measure is to appropriate funds to conduct feasibility studies for a spaceport and to pay for consultation and other expenses incurred in applying to the Federal Aviation Administration for a commercial space transportation license.

     Testimony in support of this measure was received from a former Governor of the State of Hawaii; the Department of Business, Economic Development, and Tourism; the Department of Transportation; Enterprise Honolulu; Hawaii Island Economic Development Board; Space Frontier Foundation; Rocketplane Global, Inc.; and Zero Gravity Corporation.

     Your Committees find that there are several companies that have approached the State to request permission to launch innovative "spaceplanes" from Hawaii as early as 2010.  In order for these vehicles to launch and land from Hawaii's airports, the State must apply for and receive a commercial space transport license from the Federal Aviation Administration (FAA).

     Your Committees understand that the appropriation in this measure is strictly a one-time request, and should the State receive a license from the FAA, the State will realize income far in excess of the appropriation.

     Your Committees have amended this measure by changing the effective date from July 1, 2020, to July 1, 2008.

     As affirmed by the records of votes of the members of your Committees on Economic Development and Taxation and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2259, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2259, 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 Committees on Economic Development and Taxation and Tourism and Government Operations,

____________________________ CLARENCE K. NISHIHARA, Chair

____________________________ CAROL FUKUNAGA, Chair