STAND. COM. REP. NO. 1326

Honolulu, Hawaii

RE: H.B. No. 449

H.D. 1

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 H.B. No. 449, H.D. 1, 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 promote economic development by appropriating funds for assisting in the development and promotion of Hawaii-manufactured products through the INNOVATE Hawaii Program.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation, Chamber of Commerce Hawaii, Hawaii Food Industry Association, Maui Chamber of Commerce, and Watanabe Floral.

Your Committee finds that fostering local manufacturing is key to strengthening the State's economy, creating jobs, and expanding the reach of "Made in Hawaii" products. Your Committee further finds that the Hawaii Technology Development Corporation administers the INNOVATE Hawaii Program, which is part of a network of fifty-two Manufacturing Extension Partnership centers that provide funding, technology, and resources to help businesses develop, manufacture, and market their products. Further investment in the INNOVATE Hawaii Program will strengthen local businesses and bolster the competitiveness of "Made in Hawaii" products. This measure will fund the Hawaii Technology Development Corporation to grow and promote the State's manufacturing sector through the INNOVATE Hawaii Program, fostering economic resilience.

Your Committee has amended this measure by:

(1) Inserting language requiring the Hawaii Technology Development Corporation to submit an annual report to the Legislature detailing certain information;

(2) Requiring the Hawaii Technology Development Corporation to prioritize funding for certain Hawaii-based manufacturers;

(3) Requiring that the funds appropriated to the Hawaii Technology Development Corporation be expended exclusively for manufacturing purposes, workforce training and upskilling programs, and the marketing and promotion of Hawaii-made products; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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. 449, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 449, H.D. 1, 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,

________________________________

LYNN DECOITE, Chair