STAND. COM. REP. NO. 3259

Honolulu, Hawaii

RE:    H.B. No. 2319

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2319, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to streamline and clarify governmental operations relating to high technology and economic development.

     Specifically, the measure:

     (1)  Exempts grants made under the community-based economic development program from the Hawaii Public Procurement Code;

(2)  Clarifies that moneys in the hydrogen investment capital special fund shall be expended by the Hawaii Strategic Development Corporation; and

(3)  Repeals the law establishing the High Technology Innovation Corporation.

     Written comments in support of this measure were submitted by the Hawaii Strategic Development Corporation.  Written comments in opposition to this measure were submitted by the State Procurement Office; High Technology Development Corporation Board of Directors; High Technology Development Corporation and High Technology Innovation Corporation.  Written comments on the measure were submitted by the Department of Business, Economic Development, and Tourism.

     Your Committee finds that creating a grant exemption from the Hawaii procurement code and clarifying where the moneys in the hydrogen investment capital special fund shall go to, supports economic development in the State.  In addition, your Committee finds that the functions and objectives of the High Technology Innovation Corporation can be assumed and executed by other existing government agencies.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2319, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair