STAND. COM. REP. NO.  404-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2668

      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. 2668 entitled:

"A BILL FOR AN ACT RELATING TO THE HIGH TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose of this measure is to continue to diversify Hawaii's economy and assist small businesses conducting innovative research with their efforts toward commercialization by appropriating funds for the continuation, and operational expenses, of the High Technology Development Corporation's Small Business Innovation Research Grant Program.

The High Technology Development Corporation and Chamber of Commerce Hawaii testified in support of this measure.

     Since 1989, the High Technology Development Corporation has been assisting small business innovation research awarded companies reach their commercial potential through the provision of grants.  This has proven to be successful for both the business awarded the grant and the State since every dollar invested through this grant program has been leveraged to attract approximately $20 in federal funds as well as commercialization funding.  Your Committee finds that the continuation of this grant program will help more companies achieve commercialization and increase the beneficial economic impacts of this program to the State.

     Your Committee has amended this measure by changing:

     (1)  The appropriation from $1,000,000 to an unspecified amount; and

     (2)  Its effective date to February 19, 2022, to encourage further discussion.

     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 small business innovation research 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. 2668, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2668, 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