STAND. COM. REP. NO. 2677

Honolulu, Hawaii

RE: S.B. No. 3045

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 3045 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) Increase the cap for awards to assist businesses applying for the Small Business Innovation Research Grant Program and the Small Business Technology Transfer Grant Program of the Hawaii Technology Development Corporation;

(2) Add the purchase of renewable energy systems as an eligible expense under the Manufacturing Development Grant Program; and

(3) 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 Hawaii Technology Development Corporation; Department of Business, Economic Development, and Tourism; University of Hawaiʻi System; Chamber of Commerce Hawaii; and Hawaii Food Industry Association.

Your Committee received comments on this measure from Oceanit.

Your Committee finds that it is critical for the State to diversify the local economy by developing a flourishing technology industry that provides quality, high-paying jobs for Hawaii residents. Therefore, this administrative measure makes various amendments to the Hawaii Technology Development Corporation law under chapter 206M, Hawaii Revised Statutes. Specifically, this measure will encourage and assist applicants to obtain federal grants by increasing the cap for awards that may be used to contract grant writing assistance; increase workforce productivity and wages by clarifying that training on new or existing manufacturing equipment is an eligible expense under the Manufacturing Development Grant Program; and help manufacturers offset the high energy costs in Hawaii by adding the purchase of renewable energy systems as an eligible expense under the Manufacturing Development Grant Program.

Your Committee has amended this measure by making a technical, nonsubstantive amendment 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 S.B. No. 3045, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3045, 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