STAND. COM. REP. NO. 1537

Honolulu, Hawaii

RE:    H.B. No. 425

       H.D. 1

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 425, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TECHNOLOGY TRANSFER AT THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Make certain sections of the Code of Ethics inapplicable to technology transfer activities sponsored by the University of Hawaii if the activities comply with the regulatory framework and research compliance program approved by the Board of Regents; and

     (2)  Require the Board of Regents to submit written status reports on its regulatory framework and research compliance program and technology transfer activities to the Legislature prior to the convening of each Regular Session.

     Your Committee received testimony in support of this measure from the University of Hawai‘i System and Chamber of Commerce Hawaii.  Your Committee received testimony in opposition to this measure from the Hawaii State Ethics Commission and Common Cause Hawaii.

     Your Committee finds that the timely and efficient commercialization of intellectual property created by the University of Hawaii's basic and applied research can make valuable contributions to the economic health and diversification of the State.  The Board of Regents of the University of Hawaii has established a regulatory framework and compliance program to balance the unique benefits and ethical issues specific to university research and technology transfer, and that program incorporates long-standing ethical research principles and technology transfer regulations currently used by the federal government.  By specifying sections of the State Ethics Code that will be inapplicable to the University's technology transfer activities, this measure will facilitate technology transfer at the University and benefit the State's economy.

     Your Committee has amended this measure by inserting an effective date of January 1, 2018.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 425, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 425, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

________________________________

GILBERT S.C. KEITH-AGARAN, Chair