STAND. COM. REP. NO. 2976

Honolulu, Hawaii

RE: H.B. No. 2610

H.D. 2

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. 2610, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to appropriate funds for the Hawaii Technology Development Corporation's manufacturing grant program.

Your Committee received testimony in support of this measure from the Hawaii Technology Development Corporation; Oceanit Laboratories, Inc.; KYD, Inc.; TeleVoice 2000; Diamond Bakery Company, Ltd.; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Kona Brewing Company; Maui Brewing Company; Hawaiian Chip Company, LLC; Makai Ocean Engineering, Inc.; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; Origin Coffee Roasters; Hawaii Coffee Company; DewPoint System, LLC; Jonah Heller, Creative; Aloha Shoyu Company, Ltd.; Hawai‘i Farm Bureau; Hawaii Fish Company; Maui Chamber of Commerce; Hyperspective Studios, Inc.; and three individuals.

Your Committee finds that the Hawaii Technology Development Corporation supports local manufacturers through its INNOVATE Hawaii program, which receives federal funding from the National Institute of Standards and Technology of the United States Department of Commerce to deliver the Manufacturing Extension Partnership program, to businesses throughout the State. The INNOVATE Hawaii program also administers the manufacturing grant program, also known as the Manufacturing Assistance Program Grant. Your Committee recognizes that the manufacturing grant program assists businesses located in Hawaii that face additional obstacles, such as high cost of energy and shipping in comparison to mainland businesses. Your Committee believes that supporting the manufacturing grant program will allow manufacturers in Hawaii to be more competitive, ultimately creating more jobs and long-term investments in Hawaii.

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. 2610, H.D. 2, and recommends that it pass Second Reading 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,

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GLENN WAKAI, Chair