STAND. COM. REP. NO.  38

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1070

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Economic Development & Business, to which was referred H.B. No. 1070 entitled:

"A BILL FOR AN ACT RELATING TO DEVELOPMENT,"

begs leave to report as follows:

The purpose of this measure is to generate economic growth and job creation, particularly in the innovation sector, by making the following appropriations:

     (1)  $2,000,000 to the Hawaii Strategic Development Corporation to continue the HI Growth Initiative established in 2013; and

     (2)  $500,000 to the High Technology Development Corporation to expand services to innovation companies in the High Technology Development Corporation facility and other incubation facilities and programs.

The Hawaii Strategic Development Corporation, High Technology Development Corporation, The Chamber of Commerce of Hawaii, Nalukai Foundation, Hawaii Tech Exchange, Energy Excelerator, and several concerned individuals testified in support of this bill.  

     Your Committee finds that taking steps to increase growth in the innovation and technology sectors would ensure a vibrant, sustainable economic future for Hawaii’s citizens and provide opportunities for Hawaii’s young people to pursue productive careers while remaining in Hawaii.  Both the HI Growth Initiative, an economic development program to invest in an innovation ecosystem supporting entrepreneurial high growth businesses and creating high wage jobs, and the High Technology Development Corporation are committed to achieving this goal.  Your Committee finds that the funding proposed in this measure would enable the HI Growth Initiative and High Technology Development Corporation to continue developing two key sectors of the State's economy: Hawaii's innovation and high technology industries.

     Your Committee has amended this measure by changing the amounts of the appropriations to unspecified amounts to facilitate continued discussion.

     Technical, nonsubstantive amendments were also made for purposes of clarity, consistency, and style.

     Should the Committee on Finance deliberate this measure further, your Committee respectfully requests that it consider appropriating $2,000,000 for the Hawaii Strategic Development Corporation to continue the HI Growth Initiative and $500,000 for the High Technology Development Corporation to expand services to innovation companies in the high technology development corporation facility and other incubation facilities and programs.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1070, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1070, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business,

____________________________

DEREK S.K. KAWAKAMI, Chair