STAND. COM. REP. NO. 2679

Honolulu, Hawaii

RE:    S.B. No. 3109

       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 Ways and Means, to which was referred S.B. No. 3109 entitled:

"A BILL FOR AN ACT RELATING TO MANUFACTURING,"

beg leave to report as follows:

     The purpose and intent of this measure is to extend the appropriation to the High Technology Development Corporation for the manufacturing development program through fiscal year 2016‑2017.

     Your Committees received testimony in support of this measure from the High Technology Development Corporation; Chamber of Commerce Hawaii; Hawaii Aquaculture and Aquaponics Association; Meadow Gold Dairies; and KYD, Inc. dba K. Yamada Distributors.

     Your Committees find that manufacturers in Hawaii produce goods that are in demand across the United States and around the world.  Thus, there is a great need for Hawaii to develop and support manufacturing in the State to reduce Hawaii's need to import consumer products and to achieve greater economic development.  The lack of available resources and the overuse of obsolete equipment have had a detrimental effect on the market competitiveness of Hawaii businesses.  Your Committees further find that it is incumbent upon the State to ease the financial burdens facing particular businesses that will work to ensure the long-term financial and economic sustainability of the State.  Your Committees believe that, through the provision of grants, the manufacturing development program provides financial benefits to manufacturers, thereby increasing their growth and encouraging other manufacturers to begin operations in Hawaii, to strengthen Hawaii's economy.

     Your Committees have amended this measure by retaining the fiscal year 2015-2016 appropriation but providing that the sum appropriated shall not lapse at the end of fiscal year 2015-2016 and that all monies that are unencumbered as of June 30, 2017, shall lapse as of that date.

     As affirmed by the records of votes of the members of your Committees on Economic Development, Environment, and Technology and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3109, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3109, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Economic Development, Environment, and Technology and Ways and Means,

________________________________ JILL N. TOKUDA, Chair

________________________________ GLENN WAKAI, Chair