STAND. COM. REP. NO. 2266

Honolulu, Hawaii

RE: S.B. No. 3243

S.D. 1

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. 3243 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to amend chapter 206M, Hawaii Revised Statutes, by:

(1) Establishing a definition of "economic zone";

(2) Replacing all instances of "industrial park" with "economic zone"; and

(3) Repealing the definition of "industrial park".

Your Committee received testimony in support of this measure from the Hawai‘i Technology Development Corporation and Hawaii Clean Power Alliance. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the Hawaii Technology Development Corporation (HTDC) was created, in part, to develop industrial parks for the location of certain high technology enterprises. Your Committee notes that the definition of industrial park has not changed since the establishment of HTDC in 1983 and believes that rebranding the term "industrial park" to "economic zone" would clarify the geographical regional density in specialized areas for HTDC to facilitate the growth and development of the commercial technology industry in Hawaii. According to testimony submitted by the Hawaii Clean Power Alliance, any growth of commercial technology will require significant operating expenditures on providing energy to those industries.

Accordingly, your Committee has amended this measure by:

(1) Including energy development in the definition of economic zones; 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. 3243, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3243, S.D. 1, and be placed on the calendar for Third Reading.

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

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GLENN WAKAI, Chair