STAND. COM. REP. NO. 1428-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3084

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Economic Development & Technology, to which was referred S.B. No. 3084, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to expand the allowable uses of Hawaii Technology Development Corporation grant funds to include providing grants to any business that applies for a federal research and development grant or receives a federal research and development award or contract that requires non-federal funding match.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation; Holomua Collaborative; Hawaii Food Industry Association; Makai Ocean Engineering, Inc.; Nalu Scientific; Simonpietri Entreprises LLC; WaiHome LLC; Chamber of Commerce Hawaii; Maui Chamber of Commerce; Hawaii Fish Company Inc.; Small Kine Research and Action; and Second Wave Technologies LLC.

Your Committee finds that Hawaii's research and development ecosystem requires flexible funding to leverage federal investment opportunities. Your Committee further finds that certain federal programs and grant opportunities for businesses engaged in research and development require matching funds from state or private sources as a condition of funding or participation. Your Committee recognizes that while the Hawaii Technology Development Corporation is authorized to provide grants to businesses applying for federal Small Business Innovation Research Program or Small Business Technology Transfer Program grants, the Development Corporation is not permitted to use funds to support applicants for other federal grant programs or to meet matching requirements for those awards. This measure addresses this issue by expanding the allowable uses of Hawaii Technology Development Corporation grant funds, which will help local companies leverage substantially larger federal investment, thereby increasing the return on state dollars while strengthening Hawaii's innovation sector.

Your Committee has amended this measure by:

(1) Excluding businesses with a primary purpose of developing or testing weapons or munitions from receiving certain grants with a matching funds requirement; and

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

As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3084, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3084, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

GREGGOR ILAGAN, Chair