STAND. COM. REP. NO. 1156

Honolulu, Hawaii

RE: H.B. No. 999

H.D. 1

S.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. 999, 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 promote economic recovery and diversification by:

(1) Establishing state goals for economic growth fueled by innovation and technology;

(2) Appropriating funds to the Hawaii Technology Development Corporation to implement specific projects that address those goals; and

(3) Requiring the Hawaii Technology Development Corporation to submit annual reports over three years to the Legislature.

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; Makai Ocean Engineering, Inc.; Oceanit; Hawaii Fish Company, Inc.; Island Plastic Bags, Inc.; Hawaii Investment Ready; Hyperspective Studios, Inc.; Blue Startups; Purple Mai‘a; Elemental Excelerator; Mana Up; Startup Capital Ventures x SBI Fund, LP; Hawaii Venture Capital Association; Min Plastics and Supply, Inc.; Nalu Scientific, LLC; Hawaii Food Manufacturers Association; 3D Innovations, LLC; Pacific Asian Center for Entrepreneurship; Hawaii Hui, LLC; and four individuals.

Your Committee finds that the State's ongoing economic recovery from the coronavirus disease 2019 pandemic has emphasized the State's need to accelerate its economic diversification efforts through substantial strategic and coordinated investments. Your Committee believes that, through public-private partnerships, Hawaii Technology Development Corporation programs will provide leverage to the State and accelerate economic diversification. This measure will put the State on the path toward economic prosperity by having the Hawaii Technology Development Corporation serve as a facilitative catalyst for innovation in the State.

Your Committee has amended this measure by:

(1) Inserting certain language from Senate Bill No. 1297, SD2 (2023) to:

(A) Establish a three-year Hawaii Office of Naval

Research Grant Program to provide grants to qualified businesses conducting research and development in alternative energy; and

(B) Establish the Alternative Energy Research and Development Revolving Fund and make a blank appropriation for the fund;

(2) Amending section 1 to reflect its amended purpose; and

(3) 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 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. 999, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 999, 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 Energy, Economic Development, and Tourism,

________________________________

LYNN DECOITE, Chair