STAND. COM. REP. NO. 2023

Honolulu, Hawaii

RE: S.B. No. 2807

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. 2807 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 Manufacturing Assistance 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; Diamond Bakery Co., Ltd.; Hawaii Business Group Incorporated; Hawaiian Chip Company; Island Plastic Bags, Inc.; Aloha Edibles Inc.; Shifted Energy; Advanced Silicon Carbide Materials; TEN TOMORROW; Praxis Bioresearch, LLC; Hawaii Food Products; Makai Ocean Engineering, Inc.; TeleVoice 2000; Bear Machinery Inc.; Purple Mai‘a Foundation; Alakoko; Hawaii Aquaculture & Aquaponics Association; XLR8HI; Sultan Ventures; and two individuals. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the Manufacturing Assistance Program provides a twenty percent reimbursement to qualified manufacturers for equipment upgrades, technical training, energy efficiency projects, and manufacturing feasibility studies. These funds are crucial as they allow local manufacturers to become more globally competitive, thereby strengthening and diversifying the economy of our State. According to testimony received by your Committee, this measure would not only assist local manufacturers to meet the increasing global demand for "Made in Hawaii" products, but also support local companies looking to maintain quality control of their products by manufacturing them locally. Your Committee notes that due to the budget shortfalls caused by the coronavirus disease 2019 pandemic, the Manufacturing Assistance 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. 2807 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