STAND. COM. REP. NO.  551

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 610

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 610 entitled:

"A BILL FOR AN ACT RELATING TO SCIENCE AND TECHNOLOGY,"

begs leave to report as follows:

     The purpose of this bill is to allow Hawaii to move the development of the high technology sector of the economy beyond existing programs that target students and schools, by establishing a Hawaii State Science and Technology Task Force (Task Force) within the High Technology Development Corporation to:

(1)  Evaluate the effectiveness of past high technology legislation;

(2)  Develop a Hawaii State Science and Technology Plan (Plan) including goals, a plan to reach the goals, and a timeline for implementation and completion;

(3)  Create guidelines for future science and high technology legislation; and

(4)  Recommend science and high technology legislation to meet Plan goals.

This measure also appropriates funds for the Task Force.

     The Department of Education testified in support of this bill.  The High Technology Development Corporation supported the intent of this measure.  The University of Hawaii, Hawaii Science and Technology Council, Hawaii Venture Capital Association, PacifiCap Group, LLC, ThinkTech Hawaii, Inc., Pukoa Scientific, and Cellular Bioengineering, Inc., testified in opposition to this bill.  The Department of Business, Economic Development, and Tourism, Office of Information Practices, and Strategic Transitions Research provided comments on this measure.

     The Hawaii Science and Technology Council (Council) recently released a report on Hawaii's science and technology industry sectors that underscored the potential of this industry and its contribution to Hawaii's economy.  Establishing a task force to take a more comprehensive approach to further development of the high technology sector in Hawaii deserves further consideration.

     Your Committee has amended this bill by:

(1)  Decreasing the number of members on the Task Force from 16 to 12;

(2)  Deleting language that allows one member of the Task Force to be selected by Hawaii's most senior United States senator;

(3)  Requiring the chairperson of the board of directors of the High Technology Development Corporation to serve on the Task Force;

(4)  Deleting language allowing the president of Enterprise Honolulu to select one member of the Task Force;

(5)  Requiring that two, rather than three, senior-level business leaders from the Council, rather than from Hawaii's emerging science and technology sectors, be appointed to the Task Force by the Speaker of the House of Representatives and President of the Senate;

(6)  Eliminating the Governor's appointment from the science and technology sector;

(7)  Removing language exempting the Task Force from Chapter 92, Hawaii Revised Statutes; and

(8)  Making technical, nonsubstantive amendments for clarity and style.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 610, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 610, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

____________________________

ANGUS L.K. MCKELVEY, Chair