STAND. COM. REP. NO. 2389

Honolulu, Hawaii

RE:    S.B. No. 2758

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Economic Development, Environment, and Technology and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.B. No. 2758 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

beg leave to report as follows:

     The purpose and intent of this measure is to make various changes regarding the organization, membership, and duties of the Pacific International Space Center for Exploration Systems (PISCES) to:

     (1)  Allow, subject to funding, the Office of Aerospace Development to hire various positions;

     (2)  Establish PISCES as a division of the Office of Aerospace Development that is to be located on the island of Hawaii;

     (3)  Direct the PISCES staff to promote and market Hawaii as a research and development destination and allow PISCES to hire various positions, subject to funding;

     (4)  Rename the Board of Directors of PISCES as the Advisory Board of Directors of PISCES, reduce the membership to seven members, amend the advisory board's powers and duties, and transfer various duties of the PISCES Executive Director to PISCES staff; and

     (5)  Simplify PISCES' annual report contents to just a summary of PISCES' significant accomplishments and activities and the status of the development of partnerships.

     Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism and Honeybee Robotics.  Your Committees received testimony in opposition to this measure from the Pacific International Space Center for Exploration Systems.

     Your Committees find that PISCES, located in Hilo, conducts environmentally-safe field tests on Hawaii's volcanic terrain to experiment and validate advanced space technologies, helps diversify industries in the State, and spurs development of technical jobs and high-tech job opportunities for local students.  Your Committees further find that combining PISCES into one organization as an agency attached to the Office of Aerospace Development will help to continue the economic development of aerospace in the State.  Your Committees agree with the Department of Business, Economic Development, and Tourism's testimony that having both a director and executive director of the Office of Aerospace Development is redundant and unnecessary.

     Your Committees have therefore amended this measure by:

     (1)  Repealing the director position of the Office of Aerospace Development;

     (2)  Changing the effective date to July 1, 2017;

     (3)  Inserting an effective date of July 1, 2016, for the appropriation; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Environment, and Technology and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2758, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2758, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Environment, and Technology and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ GLENN WAKAI, Chair