STAND. COM. REP. NO. 2494

Honolulu, Hawaii

RE: S.B. No. 2702

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, Public Safety, Intergovernmental, and Military Affairs, and Government Operations, to which was referred S.B. No. 2702 entitled:

"A BILL FOR AN ACT RELATING TO DEVELOPMENT OF THE AEROSPACE INDUSTRY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii Aerospace Development Corporation;

(2) Transfer the rights, powers, functions, and duties of the Office of Aerospace Development and Pacific International Space Center for Exploration Systems to the Hawaii Aerospace Development Corporation; and

(3) Repeal the Office of Aerospace Development and the Pacific International Space Center for Exploration Systems.

Your Committees received testimony in support of this measure from the University of Hawai‘i and one individual. Your Committees received testimony in opposition to this measure from the State Procurement Office and three individuals. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Budget and Finance; Department of Taxation; Office of Information Practices; Life of the Land; RedWorks Construction Technologies Inc.; and four individuals.

Your Committees find that Hawaii plays an important role in the development of the aerospace industry, given Hawaii's strategic near-equatorial location, substantial telemetry, space surveillance, and resident expertise in a broad range of aerospace-related technologies. Your Committees further find that combining the resources, goals, and expertise of the Office of Aerospace Development and Pacific International Space Center for Exploration Systems will allow the State to direct its efforts in advancing Hawaii in the aerospace industry.

Your Committees have amended this measure by:

(1) Deleting language that exempts the Hawaii Aerospace Development Corporation from the Hawaii Public Procurement Code to solicit competitive sealed bids for certain contracts;

(2) Adopting the language suggested by the Office of Information Practices that makes the confidentiality provision more consistent with the Uniform Information Practices Act and the Sunshine Law;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) 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, Public Safety, Intergovernmental, and Military Affairs, and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2702, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2702, 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, Public Safety, Intergovernmental, and Military Affairs, and Government Operations,

________________________________ CLARENCE K. NISHIHARA, Chair	________________________________ GLENN WAKAI, Chair
	________________________________ DONNA MERCADO KIM, Chair