STAND. COM. REP. NO. 2312

Honolulu, Hawaii

RE: S.B. No. 3000

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 Economic Development, Tourism, and Technology, to which was referred S.B. No. 3000 entitled:

"A BILL FOR AN ACT RELATING TO INNOVATION BUSINESS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the research and development program in the Hawaii Technology Development Corporation;

(2) Establish the research and development special fund; and

(3) Appropriate funds for the research and development program.

Your Committee received testimony in support of this measure from the Hawaii Technology Development Corporation; Navatek; Makai Ocean Engineering, Inc.; Chamber of Commerce Hawaii; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; and six individuals. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that research and development is vital to the future growth of Hawaii's economy. Supporting innovation in Hawaii will encourage innovative ideas from the local community. It is important for the State to create an environment that encourages new ideas that aim to advance Hawaii in research and development, and doing so will create more jobs and encourage highly skilled workers to remain in Hawaii.

Your Committee has amended this measure, as suggested by the Hawaii Technology Development Corporation, by:

(1) Clarifying that merely submitting proof of federal research and development tax credits received will not entitle a business to receive funding under the research and development program but will make the business eligible for funding;

(2) Requiring the Hawaii Technology Development Corporation to analyze each application for the program to determine whether the item to be undertaken will be economically viable and beneficial to the State; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3000, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3000, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Tourism, and Technology,

________________________________

GLENN WAKAI, Chair