STAND. COM. REP. NO. 2712

Honolulu, Hawaii

RE: S.B. No. 2546

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2546 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Division of Aerospace Development within the Hawaii Technology Development Corporation;

(2) Transfer all rights, powers, functions, duties, and employees of the Office of Aerospace Development and Pacific International Space Center for Exploration Systems to the Division of Aero Space Development;

(3) Establish the Hawaii Broadband Office within the Hawaii Technology Development Corporation; and

(4) Appropriate funds for the establishment and staffing of the Hawaii Broadband Office.

Your Committee received comments on this measure from the Department of Budget and Finance, Pacific International Space Center for Exploration Systems, and Hawaii Technology Development Corporation.

Your Committee finds that given Hawaii's strategic near‑equatorial location and resident expertise in a broad range of aerospace-related technologies, Hawaii plays an important role in the development of the aerospace industry. Your Committee further finds that Hawaii continues to support national space efforts through a wide range of aerospace-related activities on all islands. The Office of Aerospace provides a focal point within state government to facilitate dialogue and coordination among Hawaii's public, private, and academic sectors to promote the growth and diversification of Hawaii's aerospace industry. However, your Committee believes that there is a need to consolidate state resources to improve the State's role in the aerospace industry.

Your Committee recognizes that transferring the Office of Aerospace and Pacific International Space Center for Exploration Systems (PISCES) into one entity will require a significant amount of time and effort. Your Committee also recognizes that the Office of Aerospace is currently going through internal changes and PISCES is currently in transition regarding contracts with an outside agency. Your Committee notes that transferring the two agencies into one entity may be ill-advised given the current status of both agencies.

Accordingly, your Committee has amended this measure by:

(1) Deleting language relating to transferring the Office of Aerospace and Pacific International Space Center for Exploration Systems into the newly-established Division of Aerospace and all other applicable language relating to the transfer; and

(2) 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 Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2546, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2546, S.D. 1, and be referred to your Committee on Ways and Means.

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

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GLENN WAKAI, Chair