STAND. COM. REP. NO. 2707

Honolulu, Hawaii

RE: S.B. No. 2703

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 Ways and Means, to which was referred S.B. No. 2703 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS TO ASSIST SPINLAUNCH,"

begs leave to report as follows:

The purpose and intent of this measure is to support the development of a small satellite launch system on the island of Hawaii.

More specifically, this measure authorizes the Department of Budget and Finance to issue special purpose revenue bonds to provide financing to assist Spinlaunch, Inc., in the development of an electrically powered, kinetic launch system to transport small satellites into low Earth orbit.

Your Committee received written comments in support of this measure from the Pacific International Space Center for Exploration Systems; CLW Engineering, LLC; three representatives of SpinLaunch, Inc.; Engineering Space; Free Flight Lab; OCC Legislative Priorities Committee, Democratic Party of Hawaii; and one concerned individual.

Your Committee received written comments in opposition to this measure from Aha Moku Advisory Committee, BIFA, and fourteen concerned individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance and one concerned individual.

Your Committee finds that the State's economy may benefit from the development of a small satellite launch system on the island of Hawaii. Your Committee further finds that the construction of an electronically powered, kinetic launch system constitutes a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure;

(2) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2703, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2703, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair