STAND. COM. REP. NO. 183

Honolulu, Hawaii

RE:    S.B. No. 634

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Economic Development and Technology, to which was referred S.B. No. 634 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 renew support of commercial high technology growth and development in Hawaii by reestablishing the High Technology Innovation Corporation.

     Your Committee received testimony in support of this measure from the High Technology Development Corporation.  Your Committee received testimony in opposition to this measure from the State Procurement Office.

     Your Committee finds that the Legislature created the High Technology Innovation Corporation in 2005 to facilitate state-based growth and development of commercial high technology.  The High Technology Innovation Corporation's duties included managing the assets and resources of the High Technology Development Corporation as well as planning, creating, and implementing any programs and projects assigned by the High Technology Development Corporation.  The High Technology Innovation Corporation's duties further included identifying and obtaining funding and other resources in support of the High Technology Innovation Corporation and the High Technology Development Corporation from agencies not able to provide resources directly to the High Technology Development Corporation; and assisting the High Technology Development Corporation strategically and operationally in support of the State's technology-based economic development activities.  In 2013, the High Technology Innovation Corporation was not extended by the Legislature, and the program accordingly ended.

     Your Committee finds that balancing the competing interests of applicants for state government contracts is essential to the effective and sustainable reestablishment of the High Technology Innovation Corporation.  Your Committee finds that this balance is attained by amending the composition of the High Technology Innovation Corporation Board of Directors to include the Administrator of the Hawaii State Procurement Office.

     Your Committee has amended this measure by:

     (1)  Amending the composition of the High Technology Innovation Corporation Board of Directors to include the Administrator of the Hawaii State Procurement Office; and

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

     As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 634, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 634, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,

____________________________

GLENN WAKAI, Chair