STAND. COM. REP. NO. 205

Honolulu, Hawaii

RE:    S.B. No. 776

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Economic Development and Technology and Education, to which was referred S.B. No. 776 entitled:

"A BILL FOR AN ACT RELATING TO SCIENCE AND TECHNOLOGY,"

beg leave to report as follows:

     The purpose of this measure is to establish the Biotechnology Task Force within the University of Hawai‘i to assess barriers faced by businesses engaged in biotechnology research or other activities, and develop recommendations and any legislation required to expedite permit processing for the specialized needs of biotechnology businesses.  The intent of this measure is to support Hawaii's growing biotechnology industry.

     Your Committees received testimony in support of this measure from the University of Hawai‘i System, the American Society for Microbiology Hawaii Branch, Hawaii Biotech Inc., and more than twenty-four individuals.

     Your Committees find that Hawaii's biotechnology industry has the ability to contribute significantly to both Hawaii's economy and the State's status as a research center, particularly in the area of tropical medicine.  However, it is your Committees' understanding that in order to conduct this research it often requires the importation of microorganisms.  Consequently, the inability of the researchers to import the microorganisms due to the state permitting requirements has severely impacted the work of the researchers.  Your Committees understand that in some cases, scientists have encountered lengthy delays of up to eight years in the processing of permits and approval decisions by state regulatory agencies.  This, in turn, has impaired the researchers' ability to sustain critical funding and has reduced their competitive advantage for renewal of research grants and industrial collaborations.

     Your Committees are strongly supportive of Hawaii's biotechnology industry and the opportunities the industry holds for economic growth and greater prestige for the State as a research center.

     Your Committee has amended this measure by:

     (1)  Clarifying that the Biotechnology Task Force membership is not limited to those entities named in this measure;

     (2)  Adding an unspecified appropriation for fiscal year 2011-2012 to be expended by the University of Hawai‘i for the operations of the task force;

     (3)  Changing the effective date from upon approval to July 1, 2011, to reflect the beginning of the 2011-2012 fiscal year; and

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

     As affirmed by the records of votes of the members of your Committees on Economic Development and Technology and Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 776, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 776, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ JILL TOKUDA, Chair

____________________________ CAROL FUKUNAGA, Chair