STAND. COM. REP. NO. 2192

Honolulu, Hawaii

RE:    S.B. No. 2340

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 S.B. No. 2340 entitled:

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

beg leave to report as follows:

     The purpose of this measure is to appropriate $500,000 for costs associated with applying for a spaceport license from the Federal Aviation Administration.

     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; Enterprise Honolulu; Hawaii Island Economic Development Board; Space Frontier Foundation; Rocketplane Global, Inc.; and Zero Gravity Corporation.

     Your Committees find that the effort to establish an international commercial spaceport in Hawaii builds on the recent development of innovative "spaceplanes" that take off and land at airports like commercial jet planes, but also use onboard rockets to carry these vehicles and their cargo of satellites, experiments and tourists to space.  Your Committees have heard that Rocketplane Global is one of several companies that have approached the State to request permission to launch these types of vehicles from Hawaii as early as 2010.  Its business plan projects approximately $200,000,000 in annual gross revenues from user fees, as well as development of a terrestrial space-themed education and training center in the Kalaeloa district on Oahu.

     In order for spaceplanes 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 $500,000 appropriation in this measure is strictly a one-time request, and should the State be successful in receiving a license from the FAA, the State will realize income far in excess of the appropriation amount.

     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 S.B. No. 2340 and recommend that it pass Second Reading 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