STAND. COM. REP. NO. 2322

Honolulu, Hawaii

RE: S.B. No. 2703

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Public Safety, Intergovernmental, and Military Affairs and Economic Development, Tourism, and Technology, to which was referred S.B. No. 2703 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist SpinLaunch Inc., with the financing of the planning, design, construction, equipping, acquisition of land, and other tangible assets necessary for a satellite launch system.

Your Committees received testimony in support of this measure from the Pacific International Space Center for Exploration Systems, SpinLaunch Inc., and one individual. Your Committees received comments on this measure from the Department of Budget and Finance.

Your Committees find that support for the development of a small satellite launch system is in the public interest. SpinLaunch Inc., proposes to construct an electrical small satellite launch system on the island of Hawaii. Your Committees find that this proposed project will produce numerous benefits, including generating millions of dollars in construction project spending; creating long-term technical jobs relating to the operation of the launch facility; helping the State, counties, and federal government to meet their goals and mandates for expanding access to space; and contributing to space exploration, observation, and transportation. Your Committees find that the issuance of special purpose revenue bonds to assist SpinLaunch Inc., in constructing a portion of its electrical small satellite launch system will make the development of such a system more economically feasible.

As affirmed by the records of votes of the members of your Committees on Public Safety, Intergovernmental, and Military Affairs and Economic Development, Tourism, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2703 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental, and Military Affairs and Economic Development, Tourism, and Technology,

________________________________ GLENN WAKAI, Chair

________________________________ CLARENCE K. NISHIHARA, Chair