STAND. COM. REP. NO.  203

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 338

      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 H.B. No. 338 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to invest in the diversification of Hawaii's economy by establishing the Hawaii Innovations Partnership Corporation and a $100,000,000 Hawaii Innovations Partnership Special Fund to provide research and development grants, seed capital, and business and technical support for ventures in advanced technology, life sciences, and renewable energy.

     The Hawaii Venture Capital Association and a concerned individual supported this bill.  Honolulu Seawater Air Conditioning, LLC, supported the bill with amendments.  The Department of Business, Economic Development, and Tourism, Hawaii Strategic Development Corporation, and High Technology Development Corporation supported the intent of this bill.  The Department of Budget and Finance did not support this bill.  The Office of Information Practices commented.

     Your Committee has amended this bill to encourage further discussion by:

(1)  Replacing references to the $50,000,000 minimum balance of the Hawaii Innovations Partnership Special Fund and the Hawaii Innovations Partnership Investment Fund with a blank amount; and

(2)  Changing the bill's effective date to July 1, 2034.

Technical, nonsubstantive 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 H.B. No. 338, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 338, 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