STAND. COM. REP. NO. 1518

Honolulu, Hawaii

RE: H.B. No. 340

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Technology, to which was referred H.B. No. 340, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HAWAII TECHNOLOGY DEVELOPMENT CORPORATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Appropriate funds to the Hawaii Technology Development Corporation for the small business innovation research program and manufacturing assistance program;

(2) Disallow Hawaii Technology Development Corporation grants to businesses that were awarded a competitive contract from the Department of Defense to research hydrodynamics and demand response; and

(3) Make an appropriation into, and out of, the alternative energy research and development revolving fund for the purpose of providing grants.

Your Committees received testimony in support of this measure from the Hawaii Technology Development Corporation; Chamber of Commerce Hawaii; Makai Ocean Engineering; Maui Brewing Company; Oceanit; IL Gelato Hawaii; Premier Solutions HI, LLC; Adnoviv LLC; Tridentis Advanced Marine Vehicles, LLC; Maui Ku‘ia Estate Chocolate Inc.; Aloha Shoyu Company; HNu Photonics, LLC; Forever Oceans; Experiad; Hawaiian Chip Company; Diagenetix Inc.; Maui Innovation Group, Inc.; Referentia Systems Incorporated; Spectrum Photonics; Nalu Scientific, LLC; Hawaii Fish Company; Kauai Beer Company; and one individual.

Your Committees find that the Hawaii Technology Development Corporation is a key state agency in the development and support of the State's manufacturing industry. Furthermore, continued support for the manufacturing industry is essential to Hawaii's economy. Your Committees further find that the Hawaii Technology Development Corporation's small business innovation research program and manufacturing assistance program play important roles in providing support to more manufacturing companies. This measure appropriates funds to the Hawaii Technology Development Corporation for the small business innovation research program and manufacturing assistance program, which provides grants to small businesses and promotes small businesses and manufacturing in the State.

Your Committees have amended this measure by removing the requirement that a business awarded a contract from the Department of Defense shall be eligible for a grant from the Hawaii Technology Development Corporation only if the contract was related to research in the fields of geothermal, solar, wind, ocean power, hydrodynamics, bioenergy, biomass, solid waste, smart grids, transportation, or demand response.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 340, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 340, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ GLENN WAKAI, Chair