STAND. COM. REP. NO. 3091

Honolulu, Hawaii

RE: H.B. No. 2080

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 Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 2080, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TECHNOLOGY DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Appropriate funds to award grants, subject to matching funds, that enable software application challenge participants to develop the proofs of concept created during the challenge into prototypes;

(2) Establish application requirements for grants, to include an overview of the proof of concept, an adoption plan for the application, budget components for the software application's development, and expected outcomes if awarded the grant; and

(3) Authorize the Hawaii Technology Development Corporation to expend some of the funds appropriated to support and manage the application challenge events and resultant prototypes and projects.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Office of Enterprise Technology Services, Hawaii Technology Development Corporation, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Transform Hawai‘i Government, and Hawaii Open Data.

Your Committee finds that supporting software developed by the public engages the local tech community in helping to modernize state government and develop innovative tools and applications that will enhance the services provided by the State to better serve the public. Your Committee further finds that events such as the Hawaii Annual Code Challenge promotes civic engagement and open government, and works to find innovative solutions for challenges faced by the government. Your Committee notes that providing support for events such as the Hawaii Annual Code Challenge will bridge the gap between a proof of concept, a prototype, and a commercial product. Your Committee believes that supporting the local tech community has the potential to establish startup businesses, thereby expanding the small business community in Hawaii.

Your Committee recognizes the challenge that nongovernment donors may face in matching up to fifty percent of the other sources of funds per project.

Accordingly, your Committee has amended this measure by:

(1) Decreasing the minimum percentage of monies that must be sourced from nongovernment sources from fifty percent to twenty-five percent; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2080, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2080, 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 Committee on Economic Development, Tourism, and Technology,

________________________________

GLENN WAKAI, Chair