STAND. COM. REP. NO.  120-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2263

      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. 2263 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to make an appropriation for the Department of Business, Economic Development, and Tourism, in conjunction with the Pacific International Space Center for Exploration Systems and Hawaii Island Economic Development Board, Inc., to conduct an economic assessment of the establishment of a small satellite launch and processing facility on the island of Hawaii.

The Pacific International Space Center for Exploration Systems, W.H. Shipman Limited, and a concerned individual testified in support of this measure.  The Department of Business, Economic Development and Tourism supported the intent of this measure.  A concerned individual testified in opposition to this measure.  The Hawaii Space Grant Consortium and Hawaii Space Flight Laboratory provided comments.

     Hawaii has long been recognized as an ideal location for the launching of spacecraft due to its geographic location.  This is especially true of Hawaii Island, which is unrivaled in the United States for equatorial launches of spacecraft, particularly small satellites, due to its global position.  Your Committee finds that locating a small satellite launch and processing facility on Hawaii Island has tremendous economic potential, but an economic assessment study should be conducted beforehand to determine the economic viability of such an endeavor.

     Your Committee has amended this measure by changing:

     (1)  The appropriation for the economic assessment study to an unspecified amount; and

     (2)  Its effective date to July 1, 2050, to facilitate further discussion.

     Should the Committee on Finance deliberate this measure further, your Committee on Economic Development & Business respectfully requests that it consider appropriating $100,000 for the economic assessment study.

     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. 2263, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2263, 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,

____________________________

DEREK S.K. KAWAKAMI, Chair