STAND. COM. REP. NO. 2988

Honolulu, Hawaii

RE:    H.B. No. 2282

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Economic Development, Government Operations and Housing and Technology and the Arts, to which was referred H.B. No. 2282, H.D. 1, entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Add the receipt of Phase II or III Small Business Innovation Research awards or contracts from any participating federal agency to the qualifying criteria for businesses to receive grants from the High Technology Development Corporation; and

     (2)  Increase the ceiling on single transfers from the Hawaii capital loan revolving fund from $100,000 to an unspecified amount.

     Your Committees received testimony in support of this measure from the High Technology Development Corporation; Chamber of Commerce Hawaii; Spectrum Photonics, Inc.; Oceanit; and TeraSys Technologies.

     Your Committees find that since 1989, the High Technology Development Corporation has been assisting Phase I Small Business Innovation Research companies that have been awarded a grant reach their commercial potential.  This has proven to be successful for the business awarded the grant and the State, given that every dollar invested through this grant program has been leveraged to attract approximately $16 in federal funds as well as commercialization funding.  Expanding the scope of the grant program will allow for more companies to achieve commercialization and increase the beneficial economic impacts of this program to the State.

     Your Committees have amended this measure by:

     (1)  Inserting language to reestablish the High Technology Innovation Corporation, including establishing:

          (A)  The purpose of the High Technology Innovation Corporation;

          (B)  The Board of Directors of the High Technology Innovation Corporation;

          (C)  Exemptions from certain state laws;

          (D)  Officers and employees of the High Technology Innovation Corporation;

          (E)  Annual reporting requirements; and

          (F)  Procedures regarding dissolution; patents, copyrights, and other rights; and contracts with state agencies;

     (2)  Inserting language to change the name of the High Technology Development Corporation to the "Hawaii Technology Development Corporation"; and

     (3)  Making technical amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Government Operations and Housing and Technology and the Arts that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2282, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2282, H.D. 1, 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, Government Operations and Housing and Technology and the Arts,

____________________________ GLENN WAKAI, Chair

____________________________ DONOVAN M. DELA CRUZ, Chair