STAND. COM. REP. NO. 1155

Honolulu, Hawaii

RE: H.B. No. 991

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred H.B. No. 991, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Change the cap for awards to assist businesses applying for the Small Business Innovation Research Grant Program and the Small Business Technology Transfer Grant Program to an unspecified amount; and

(2) Add purchasing of renewable energy systems as an eligible expense, and clarify that training on both new and existing manufacturing equipment is an eligible expense, for the Manufacturing Development Grant Program.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Technology Development Corporation; Chamber of Commerce Hawaii; Hawaii Food Industry Association; Makai Ocean Engineering, Inc.; Oceanit; Hawaii Food Manufacturers Association; and one individual.

Your Committee finds that the Hawaii Technology Development Corporation's core grant programs provide leverage and positive economic development value for the State. These programs further help diversify the State's economy by providing grant incentives for manufacturers and small businesses conducting research for the federal government. Your Committee believes that the existing funds awarded as a reimbursement for grant writing assistance are no longer sufficient and the cap should be increased to encourage new applicants. Additionally, adding renewable energy systems as an eligible expense will help manufacturers offset high energy costs in the State. This measure will provide funding to spur more economic growth and continue the advancement of technology and innovation in the State.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 991, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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LYNN DECOITE, Chair