STAND. COM. REP. NO. 2778

Honolulu, Hawaii

RE:    H.B. No. 2831

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Economic Development and Technology, to which was referred H.B. No. 2831, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Authorize the Natural Energy Laboratory of Hawaii Authority (NELHA) to acquire, hold, and sell qualified securities subject to certain conditions; and to accept donations of money, property, and services; and

     (2)  Require the NELHA annual report to include information on these matters.

     Testimony in support of this measure was submitted by the Natural Energy Laboratory of Hawaii Authority.

Written testimony presented to the Committee may be reviewed on the Legislature's website.

Your Committee finds that currently, the NELHA statutes do not authorize NELHA to hold equity securities such as stocks, warrants, options, or instruments convertible into equity securities, a provision that NELHA views as necessary in conducting its business activities.  Your Committee understands that there have been several past occasions when tenants conveyed equity to NELHA in payment of accounts owed, and NELHA then sold the shares to recoup its expenses.  Recently, however, NELHA has been informed by the Department of the Attorney General that since NELHA does not have this statutory authority to hold equity securities, it could be sued if it did accept such securities.  This measure will remedy the situation and assist NELHA in meeting its economic goals and obligations.

     Your Committee has amended this measure by making technical nonsubstantive amendments for clarity and consistency.

     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 H.B. No. 2831, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2831, 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 Committee on Economic Development and Technology,

____________________________

CAROL FUKUNAGA, Chair