STAND. COM. REP. NO. 44-16
Honolulu, Hawaii
, 2016
RE: H.B. No. 2262
H.D. 1
Honorable Joseph M. Souki
Speaker, House of Representatives
Twenty-Eighth State Legislature
Regular Session of 2016
State of Hawaii
Sir:
Your Committee on Economic Development & Business, to which was referred H.B. No. 2262 entitled:
"A BILL FOR AN ACT RELATING TO THE HIGH TECHNOLOGY DEVELOPMENT CORPORATION,"
begs leave to report as follows:
As one of the most isolated land masses on earth, Hawaii must import approximately 90 percent of all products consumed annually in the State. However, manufacturers in Hawaii produce goods that are in demand across the United States and around the world. Thus, developing and supporting manufacturing in Hawaii could serve two purposes. First, in-state manufacturing could reduce Hawaii's need to import consumer products. Second, exporting more products made in-state could lead to greater economic development.
According to the Chamber of Commerce of Hawaii, Hawaii has over 1,000 active manufacturers employing approximately 17,000 workers and Hawaii's manufacturing industry helped the local economy by exporting nearly $570 million in manufactured goods in 2012.
Recognizing the potential economic benefits provided by the manufacturing industry, the Legislature appropriated $2,000,000 in 2015 to establish a manufacturing grant program within the High Technology Development Corporation to assist companies with qualified manufacturing expenses. However, delays in establishing this program have occurred as the due process for the adoption of rules has taken longer than expected. While the High Technology Development Corporation has prepared rules for this program, distribution of grant monies cannot occur until these rules are adopted. As the initial appropriation for this program lapses at the end of the current fiscal year, your Committee finds that the appropriation contained in this measure is necessary to extend the manufacturing grant program.
Your Committee has amended this measure by changing the appropriation from $1,000,000 to an unspecified amount. Should the Committee on Finance deliberate this measure further, your Committee on Economic Development and Business respectfully requests that it consider appropriating $2,000,000 for the continuation of the manufacturing grant program in the High Technology Development Corporation.
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 H.B. No. 2262, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2262, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,
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____________________________ DEREK S.K. KAWAKAMI, Chair |