STAND. COM. REP. NO. 91

Honolulu, Hawaii

RE:    S.B. No. 523

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Economic Development and Technology, to which was referred S.B. No. 523 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to increase opportunities under the High Technology Research and Development Loan and Grant Program.

     Specifically, this measure increases the level of the State's matching awards for small business innovative research and small business technology transfer research to fifty per cent of the federal awards and to clarify that the High Technology Research and Development Grant Program shall provide grants to any business in Hawaii that applies or receives a Federal Small Business Innovation Research award or grant or receives a Small Business Technology Transfer Program award.  This measure also provides the High Technology Development Corporation with the discretion to transfer funds from the Hawaii Capital Loan Revolving Fund to the High Technology Development Corporation.

     Testimony in support of this measure was submitted by one private organization.  Comments on this measure were submitted by one state agency.  Copies of written testimony are available for review on the Legislature's website.

     Your Committee finds that the level of the State's matching awards to small business innovative research and small business technology transfer research is only equal to twenty-five per cent of the federal awards.  The original intent of the enactment of section 206M-15, Hawaii Revised Statutes, was to match fifty per cent of the federal awards.  Your Committee further finds that increasing the State's matching funds will strengthen the innovation of small businesses in Hawaii and promote acceleration of the small businesses to successful commercialization.

     Your Committee has amended this measure by:

     (1)  Deleting the reference to the Hawaii Capital Loan Revolving Fund; and

     (2)  Making technical, nonsubstantive amendments for the purpose of clarity.

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 523, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 523, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

CAROL FUKUNAGA, Chair