STAND. COM. REP. NO. 2517

Honolulu, Hawaii

RE: S.B. No. 2751

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 Higher Education and Economic Development, Tourism, and Technology, to which was referred S.B. No. 2751 entitled:

"A BILL FOR AN ACT RELATING TO THE PACIFIC INTERNATIONAL SPACE CENTER FOR EXPLORATION SYSTEMS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Place the Pacific International Space Center for Exploration Systems within the Department of Business, Economic Development, and Tourism, rather than the Office of Aerospace Development; and

(2) Deletes the Executive Director of the Pacific International Space Center for Exploration Systems as a member of the board and adds the Chancellor of the University of Hawai‘i at Hilo.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Pacific International Space Center for Exploration Systems; University of Hawai‘i System; and one individual.

Your Committees find that the Pacific International Space Center for Exploration Systems is incorrectly placed in the Office of Aerospace Development as section 26-35(a), Hawaii Revised Statutes, requires that administrative supervision of any board or commission shall be placed within a principal department. Your Committees further find that the Executive Director of the Pacific International Space Center for Exploration Systems is serving on the Board of Directors; however, the Board is required to confirm the Executive Director and set the Executive Director's salary. As such, your Committees believe that the Executive Director should not serve on the Board of Directors and in the Executive Director's place the Chancellor of the University of Hawai‘i at Hilo is a more fitting member to provide the County of Hawai‘i's academic perspective to the Board.

Your Committees further find that combining the resources, goals, and expertise of the Office of Aerospace Development with the Pacific International Space Center for Exploration Systems will consolidate state resources and put more focus on the success of the Space Center that will push Hawaii forward in the field of aerospace.

Accordingly, your Committees have amended this measure by:

(1) Repealing the Office of Aerospace Development and transferring all rights, powers, functions, and duties of the Office of Aerospace Development to the Pacific International Space Center for Exploration Systems;

(2) Inserting a cap of $1,000,000 for the Pacific international space center for exploration systems special fund; and

(3) 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 Higher Education 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. 2751, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2751, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Higher Education and Economic Development, Tourism, and Technology,

________________________________ GLENN WAKAI, Chair

________________________________ KAIALI'I KAHELE, Chair