STAND. COM. REP. NO. 392

Honolulu, Hawaii

RE: S.B. No. 989

S.D. 1

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 S.B. No. 989 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:

(1) Appropriate funds to the Hawaii Technology Development Corporation to assist small businesses with technology enablement; and

(2) Require the Hawaii Technology Development Corporation to submit a status report to the Legislature.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Piko Provisions; Ai.Fish; PacMar Technologies; Hidden Gears; Meadow Gold Dairies Hawaii; WaiHome LLC; Cymz Sweet Kre8tionz LLC; Hawaii Fish Company Inc.; XLR8HI; Sultan Ventures; Experiad; and two individuals.

Your Committee finds that the Hawaii Technology Development Corporation (HTDC) was established to foster innovation and economic diversification and is dedicated to supporting the growth and development of the State's technology sector. HTDC has had a visible impact on a wide variety of industries across the State, administering grants, promoting public-private partnerships, and empowering local businesses through the implementation of successful advancements in technology that are focused on the priorities of the State. Your Committee notes that even with the success of HDTC's projects, more could be done for small businesses to equip them with the adequate materials to be successful in an increasingly technological economy. This measure will expand funding for small businesses by appropriating funds to the HDTC to assist businesses with tech enablement.

Your Committee has amended this measure by:

(1) Changing the appropriation to an unspecified amount;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $500,000.

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 S.B. No. 989, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 989, S.D. 1, 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,

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LYNN DECOITE, Chair