STAND. COM. REP. NO. 3571

Honolulu, Hawaii

RE:    H.B. No. 2263

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2263, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to appropriate moneys for the Department of Business, Economic Development, and Tourism to conduct a study on the development and economic viability of a small satellite launch and processing facility on the island of Hawaii.

     Your Committee received written comments in support of this measure from the Department of Business, Economic Development, and Tourism.

     Your Committee received written comments on this measure from the Aha Moku Advisory Committee.

     Your Committee finds that the State's geographic location, particularly the island of Hawaii, makes the State an ideal location for equatorial launches of spacecraft and small satellites.

     Your Committee also finds that recent advances in the miniaturization of satellite components, standardization in satellite parts, and related factors have made the manufacture, launch, and operation of small satellites a potentially prosperous industry.  However, your Committee believes that further research should be conducted on the development and economic viability of a small satellite launch and processing facility on the island of Hawaii to determine whether this industry would be beneficial for the State.

     Your Committee notes the original draft of this measure included an appropriation of $100,000 for the preparation of the economic assessment study.

     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. 2263, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

JILL N. TOKUDA, Chair