STAND. COM. REP. NO. 3364

Honolulu, Hawaii

RE:    H.B. No. 2282

       H.D. 1

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2282, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to support Hawaii's technology industry.

Specifically, this measure:

(1)  Changes the name of the High Technology Development Corporation to the Hawaii Technology Development Corporation.

(2)  Authorizes the Hawaii Technology Development Corporation to provide grants to any business in Hawaii that receives a federal small business innovation research phase II or III award or contract from a participating federal agency similar to the grant qualification of businesses that have received a federal small business technology transfer program phase II or III award or contract; and

(3)  Re-establishes the High Technology Innovation Corporation to facilitate the growth and development of the commercial high technology industry in Hawaii.

     Your Committee received written comments in support of this measure from Spectrum Photonics, The Chamber of Commerce of Hawaii; Terasys Technologies, and Oceanit Laboratories Inc. The Department of the Attorney General, Hawaii Strategic Development Corporation, and High Technology Development Corporation submitted written comments on the measure.

Your Committee finds that changing the name of the High Technology Development Corporation to the Hawaii Technology Development Corporation will help to more accurately reflect the corporation's mission to work with all technology industries.

Your Committee also finds that authorizing the Hawaii Technology Development Corporation to provide grants to businesses in Hawaii that have received a federal small business innovation research phase II or III award or contract, in addition to the current phase I awards or contracts, will help to provide mid- and late-stage funding for businesses that are attempting to become commercially viable.

     In addition, your Committee believes that re-establishing the High Technology Innovation Corporation will help to support the efforts of the Hawaii Technology Development Corporation by providing access to additional sources of revenue not otherwise available and by increasing the flexibility to quickly and effectively respond to growth and development demands in Hawaii's technology sector.

     Your Committee has amended this measure by:

(1)  Amending the language authorizing the Hawaii Technology Development Corporation to provide grants to any business in Hawaii that receives a federal small business innovation research award or contract to mirror the language in section 206M-15(b)(2), Hawaii Revised Statutes, regarding the federal small business technology transfer program;

(2)  Authorizing the ex officio members of the High Technology Innovation Corporation board of directors to designate a representative to the board; and

(3)  Making technical nonsubstantive amendments to correct a spelling error and for the purposes of clarity, consistency, and style.

     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. 2282, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2282, H.D. 1, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair