STAND. COM. REP. NO. 2022

Honolulu, Hawaii

RE: S.B. No. 2806

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2806 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 appropriate $1,500,000 to the Hawaii Technology Development Corporation for the Hawaii Small Business Innovation Research Program.

Your Committee received testimony in support of this measure from the Hawai‘i Technology Development Corporation; University of Hawai‘i System; Chamber of Commerce Hawaii; Hawaii Food Industry Association; Maui Chamber of Commerce; Simonpetri Enterprises; Island Plastic Bags, Inc.; Shifted Energy; Studio Kinection, Inc., Premier Solutions HI LLC; Praxis Bioresearch, LLC; Skywriting by...nico; Hawaii Food Products; Makai Ocean Engineering, Inc.; TeleVoice 2000; Nalu Scientific, LLC; Bear Machinery Inc.; Purple Mai‘a Foundation; Hawaii Aquaculture & Aquaponics Association; XLR8HI; Sultan Ventures; and two individuals. Your Committee received comments on this measure from the Department of Budget and Finance and Oceanit Laboratories, Inc.

Your Committee finds that the Hawaii Small Business Innovation Research Program provides matching grant funding to assist startups in their early efforts to research and develop new technologies and innovations. These funds are crucial as they allow local startups to develop new technology to promote commercial enterprise, thereby strengthening and diversifying the economy of our State. According to testimony received by your Committee, the State has been able to leverage every dollar invested in the Hawaii Small Business Innovation Research Program into twenty federal dollars. Your Committee notes that due to the budget shortfalls caused by the coronavirus disease 2019 pandemic, the Hawaii Small Business Innovation Research Program was not funded for the 2021 fiscal year.

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. 2806 and recommends that it pass Second Reading 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