STAND. COM. REP. NO.  1262-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 3037

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Economic Revitalization & Business and Higher Education, to which was referred S.B. No. 3037, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE PACIFIC INTERNATIONAL SPACE CENTER FOR EXPLORATION SYSTEMS,"

beg leave to report as follows:

The purpose of this measure is to provide a strategic approach to facilitate the growth of the aerospace industry in the State.

     Specifically, the measure:

     (1)  Transfers the Pacific International Space Center for Exploration Systems from the University of Hawaii to the Department of Business, Economic Development, and Tourism; and

     (2)  Authorizes the issuance of an unspecified amount of general obligation bonds and makes an unspecified appropriation out of general funds to finance construction of the Pacific International Space Center for Exploration Systems' aerospace research technology park project.

The Chamber of Commerce of Hawaii and an individual testified in support of this measure.  The Department of Business, Economic Development, and Tourism and Chancellor of the University of Hawaii at Hilo testified in support of the intent of this measure.  The Department of Human Resources Development provided comments on this measure.

     Your Committees have amended this measure by:

     (1)  Replacing the contents of the measure with the contents of the substantially similar H.B. No. 2873, H.D. 2;

     (2)  Amending H.B. No. 2873, H.D. 2, to have the board of directors consist of ten members, including the Executive Director of the Space Center, Director of Business, Economic Development, and Tourism or the Director's representative, the President of the University of Hawaii or the President's representative, six members from various backgrounds, and a member from the National Aeronautics and Space Administration;

     (3)  Amending H.B. No. 2873, H.D. 2, to change the method of appointment to the board of directors and the length of the terms of appointment;

     (4)  Amending H.B. No. 2873, H.D. 2, to change the Executive Director into an Interim Executive Director; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization & Business and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3037, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3037, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Economic Revitalization & Business and Higher Education,

____________________________ SCOTT NISHIMOTO, Chair

____________________________ ANGUS L.K. McKELVEY, Chair