CONFERENCE COMMITTEE REP. NO. 160-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 48

S.D. 3

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 48, S.D. 3, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TECHNOLOGY,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to abolish the Hawaii Technology Development Corporation and the Hawaii Strategic Development Corporation and establish in their place the Hawaii Innovation and Technology Research Corporation.

This measure also converts the means of financing for several permanent and temporary positions within the Hawaii Technology Development Corporation from special funds to general funds, and appropriates general funds to the Hawaii Technology Development Corporation for other current expenses.

Your Committee on Conference believes that in order to diversify Hawaii's economy to include high-quality, knowledge-based jobs, Hawaii's innovation and technology industry should be promoted, developed, and expanded. Therefore, your Committee on Conference finds that it is in the public's interest to combine the resources, duties, and responsibilities of the Hawaii Technology Development Corporation and the Hawaii Strategic Development Corporation.

Your Committee on Conference has amended this measure by:

(1) Deleting the provisions that establish the Hawaii Innovation and Technology Research Corporation;

(2) Restoring the Hawaii Technology Development Corporation and repealing only the Hawaii Strategic Development Corporation;

(3) Re-establishing the rights, powers, functions, duties, and programs of the Hawaii Strategic Development Corporation within the Hawaii Technology Development Corporation;

(4) Changing the size and composition of the Hawaii Technology Development Corporation board of directors by:

(A) Reducing the size of the board from eleven to nine members;

(B) Eliminating the University of Hawaii faculty member from the appointed members of the board;

(C) Eliminating the members from the Hawaii Strategic Development Corporation and the Natural Energy Laboratory of Hawaii Authority from the ex officio members of the board; and

(D) Adding the Chairperson of the Department of Agriculture as an ex officio member of the board;

(5) Renaming the Hawaii Technology Development Corporation as the Hawaii Innovation, Technology, and Research Corporation;

(6) Clarifying that the official of the Hawaii Innovation, Technology, and Research Corporation who prescribes the duties and qualifications of transferred employees and fixes their salaries is the chief executive officer;

(7) Authorizing the Director of Finance to transfer from the technology special fund to the general fund the sum of $279,666 for fiscal year 2018-2019;

(8) Increasing the general fund appropriation from $370,410 to $970,000 for the permanent and temporary positions in the Hawaii Technology Development Corporation whose means of financing is being converted from special funds to general funds;

(9) Increasing the general fund appropriation for other current expenses of the Hawaii Technology Development Corporation from $123,446 to $720,000 and clarifying that the purpose of the appropriation is to finance a technology park coordinator position and a first responders technology park proof of concept; and

(10) Specifying that the terms of the board members of the Hawaii Strategic Development Corporation will expire on July 1, 2020.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 48, S.D. 3, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 48, S.D. 3, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SYLVIA LUKE Co-Chair	____________________________ DONOVAN M. DELA CRUZ Chair
____________________________ CINDY EVANS Co-Chair	____________________________ GLENN WAKAI Co-Chair
____________________________ ANGUS L.K. MCKELVEY Co-Chair	____________________________ KAIALI'I KAHELE Co-Chair
	____________________________ KARL RHOADS Co-Chair