STAND. COM. REP. NO. 1132

Honolulu, Hawaii

RE: H.B. No. 862

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Higher Education, to which was referred H.B. No. 862, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Abolish the Office of Aerospace Development, Aerospace Advisory Committee, and the Hawaii Unmanned Aerial Systems Test Site Advisory Board; and

(2) Specify that the Pacific International Space Center for Exploration Systems shall be administratively attached to the University of Hawaii at Hiko Imiloa rather than the Department of Business, Economic Development, and Tourism.

Prior to hearing this measure, your Committees made available for public review a proposed S.D. 1 of this measure. The proposed S.D. 1, in addition to the original contents of the measure:

(1) Transfers the administration of the Challenger Center Hawaii program from the Office of Aerospace Development to the Department of Education for administrative purposes; and

(2) Transfers all appropriations for the Challenger Center Hawaii Program from the Office of Aerospace Development to the Department of Education.

Your Committees received testimony in support of the proposed S.D. 1 from the Department of Education, University of Hawai‘i System, Challenger Center Hawaii, Pacific International Space Center for Exploration Systems, Canada-France-Hawaii Telescope Corporation, Sustainable Energy Hawai‘i, Smarter Building Systems LLC, and eleven individuals. Your Committees received comments on the proposed S.D. 1 from the Department of Business, Economic Development, and Tourism.

Your Committees find that Hawaii plays an important role in the development of the aerospace industry and given the current economic situation in the State, it is critical for the State to consider reallocating its limited resources by eliminating certain state agencies. While recognizing the need to reallocate resources, your Committees also recognize the vital role that the Pacific International Space Center for Exploration plays in facilitating aerospace economic development projects, workforce development, and outreach programs.

Your Committees also recognize that the Challenger Center Hawaii Program adds value to the State's education system. The Challenger Center Hawaii Program is a once-in-a-lifetime experience that offers middle-school students the opportunity to apply both critical and creative thinking in a real-world collaborative space exploration scenario. Through this program, students are immersed in a fully-integrated Science, Technology, Engineering, and Mathematics (STEM) experience based on core concepts that enhance their aptitude in a wide variety of foundational life skills, which serves as a springboard for students to embark in STEM careers.

Your Committees have amended this measure by specifying that the Executive Director of the Pacific International Space Center for Exploration Systems shall oversee and manage the Unmanned Aircraft Systems Program.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 862, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 862, H.D. 2, 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 Higher Education,

________________________________ DONNA MERCADO KIM, Chair

________________________________ GLENN WAKAI, Chair