STAND. COM. REP. NO. 469

Honolulu, Hawaii

RE: S.B. No. 995

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 S.B. No. 995 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to appropriate funds into and out of the research and development special fund for the research and development program of the Hawaii Technology Development Corporation.

Your Committees received testimony in support of this measure from the Hawaii Technology Development Corporation, Hawaii Farm Bureau, Makai Ocean Engineering, Oceanit, and one individual.

Your Committees find that the Hawaii Technology Development Corporation is a key state agency in the development and support of initiatives that promote technology and innovation jobs in the State. In 2018, the Legislature provided funding for and made changes to the small business innovation research program. The Legislature supports continuation of the small business innovation research program as an important initiative of the State to assist Hawaii small businesses in advancing technology and developing new products. This measure appropriates funds for the research and development program, which will support and sustain the small business innovation research program operated by the Hawaii Technology Development Corporation.

Your Committees have amended this measure by:

(1) Inserting language to require the Hawaii Technology Development Corporation to adopt rules to require a business that has received a research and development award to reimburse the State if that business relocates outside of Hawaii within five years of receiving the award; and

(2) 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 Energy, Economic Development, and Tourism and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 995, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 995, 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