STAND. COM. REP. NO. 3180

Honolulu, Hawaii

RE: H.B. No. 1962

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Economic Development, Tourism, and Technology and Labor, to which was referred H.B. No. 1962, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MANUFACTURING,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Business, Economic Development, and Tourism to conduct an economic development study on opportunities for automated manufacturing in the State and submit a report to the Legislature; and

(2) Appropriate funds to conduct the economic development study.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i.

Your Committees find that Hawaii imports over ninety percent of the products that the State consumes. Your Committees find more merit and benefit in supporting local manufacturers to supply the products that residents of Hawaii demand. Your Committees recognize that due to the remoteness of Hawaii's location, Hawaii consumers and businesses face an additional challenge of high shipping costs and other financial challenges. Your Committees believe that supporting local manufacturers has the potential to enhance the economy of the State, while providing residents with products at reasonable prices. Your Committees further believe that automating manufacturing can assist a number of Hawaii businesses by speeding up production.

Your Committees note that the Department of Business, Economic Development, and Tourism requested $150,000 in order to conduct the economic development study on automated manufacturing opportunities in Hawaii.

Accordingly, your Committees have amended this measure by:

(1) Inserting an appropriation amount of $150,000 to conduct the study; and

(2) 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, Tourism, and Technology and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1962, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1962, H.D. 1, 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, Tourism, and Technology and Labor,

________________________________ JILL N. TOKUDA, Chair

________________________________ GLENN WAKAI, Chair