STAND. COM. REP. NO.  1057-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2832

      S.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred S.B. No. 2832, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to move Hawaii toward a more diversified economy and assist small businesses conducting innovative research with their efforts toward commercialization by:

     (1)  Including the receipt of any Small Business Innovation Research Program award or contract from any participating federal agency to the qualifying criteria for businesses to receive grants from the High Technology Development Corporation; and

     (2)  Increasing the ceiling on transfers from the Hawaii Capital Loan Revolving Fund for the High Technology Development Corporation to provide grants.

High Technology Development Corporation; The Chamber of Commerce of Hawaii; Hawaii Food Manufacturers Association; Spectrum Photonics, Inc.; TeraSys Technologies; Labels That Talk, Ltd.; Oceanit; Technical Research Associates, Inc.; Hawaii Fish Company Inc.; HealthTech Apps, inc.; 3D Innovations; Renewable Water Technologies LLC; Tissue Genesis, Inc.; and a concerned individual testified in support of this measure.  A concerned individual provided comments.

     Since 1989, the High Technology Development Corporation has been assisting Phase I Small Business Innovation Research awarded companies reach their commercial potential through the provision of grants.  This has proven successful for both 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 this program would allow more companies to achieve commercialization and increase the beneficial economic impacts of this program to the State.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2832, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

CLIFT TSUJI, Chair