STAND. COM. REP. NO. 1250

Honolulu, Hawaii

RE: H.B. No. 454

H.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred H.B. No. 454, H.D. 2, 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 state goals related to economic diversification;

(2) Appropriate funds to the Hawaii Technology and Development Corporation to meet those goals; and

(3) Require the Hawaii Technology Development Corporation to submit annual reports over three years to the Legislature.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation; Holomua Collaborative; Chamber of Commerce Hawaii; Hawaiʻi Farm Bureau; Oceanit; The Art Source Inc.; Hawaii Food Industry Association; Ocean Era, Inc.; Blue Startups; Artisan Events Maui, LLC; Samurai, Inc.; Na Koa Brand, LLC; Ai.Fish; IL Gelato Hawaii; MorphOptic; Small Kine Farm; Hawaii Fish Company; HI-Spectral, LLC; Kahele Maui LLC; Aloha Shoyu Company; Nalu Scientific, LLC; Simonpietri Enterprises; Holo Holo Charters; Pacific Shipyards International; Maui Chamber of Commerce; and three individuals.

Your Committee finds that the State, due to its reliance on a few industries, namely tourism, is particularly vulnerable to economic shocks and downturns. Your Committee further finds that economic diversification is crucial to stabilize the State's revenue streams and create a more resilient economic framework. As the State's economic development agency, the Hawaii Technology Development Corporation is critical in implementing programs that foster the growth of technology and economic innovation throughout the State. To further support the mission of the Hawaii Technology Development Corporation, this measure establishes state goals related to economic growth and diversification and provides essential funding to meet those goals.

As affirmed by the record of votes of the members of your Committee on Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 454, H.D. 2, 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 Economic Development and Tourism,

________________________________

LYNN DECOITE, Chair