STAND. COM. REP. NO. 2920

Honolulu, Hawaii

RE: S.B. No. 2751

S.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 Ways and Means, to which was referred S.B. No. 2751, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to update laws related to the Office of Aerospace Development and the Pacific International Space Center for Exploration Systems.

More specifically, this measure:

(1) Establishes the Hawaii Unmanned Aerial Systems Test Site Advisory Board;

(2) Places the Pacific International Space Center for Exploration Systems within the Department of Business, Economic Development, and Tourism;

(3) Makes changes to the composition of the Board of Directors of the Space Center;

(4) Adds the Chancellor of the University of Hawaii at Hilo, or the Chancellor's designated representative, to the Board of Directors;

(5) Establishes a ceiling of $1,000,000 to the Pacific International Space Center for Exploration Systems Special Fund; and

(6) Repeals the Office of Aerospace Development and transfers all of its rights, powers, functions, and duties to the Space Center.

Your Committee received written comments in support of this measure from the Pacific International Space Center for Exploration; and OCC Legislative Priorities Committee, Democratic Party of Hawaii.

Your Committee received written comments in opposition to this measure from the UH Applied Research Lab and BIFA.

Your Committee received written comments on this measure from the Department of Business, Economic Development, and Tourism.

Your Committee finds that the Pacific International Space Center for Exploration Systems is currently administratively attached to the Office of Aerospace Development. However, your Committee believes that it would be more appropriate for the Space Center to be renamed to the Office of Aerospace and Aviation Industries and to be attached to the Department of Business, Economic Development, and Tourism.

Your Committee has amended this measure by:

(1) Renaming the Pacific International Space Center for Exploration Systems as the Office of Aerospace and Aviation Industries;

(2) Including economic development and job creation among the responsibilities of the Hawaii Unmanned Aerial Systems Test Site Advisory Board;

(3) Including the promotion of economic opportunities and creation of jobs among the responsibilities of the Hawaii Unmanned Aerial Systems Test Site Chief Operating Officer;

(4) Revising the responsibilities of the Executive Director of the Office of Aerospace and Aviation Industries to include the planning, evaluation, and coordination of economic opportunities and job creation for space-related research activities;

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

(6) Making technical nonsubstantive changes for the 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. 2751, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2751, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair