STAND. COM. REP. NO. 2241

Honolulu, Hawaii

RE: S.B. No. 3084

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Economic Development and Tourism, to which was referred S.B. No. 3084 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 expand the allowable uses of Hawaii Technology Development Corporation grant funds to include providing grants to applicants for qualifying federal research and development awards and matching funds for recipients of those awards and related contracts.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaiʻi Technology Development Corporation; Chamber of Commerce Hawaii; Simonpietri Enterprises LLC; Hawaii Food Industry Association; Oceanit Laboratories, Inc.; and Maui Chamber of Commerce.

Your Committee finds that federal research grants, including the Small Business Innovation Research and Small Business Technology Transfer programs, are highly competitive and bring significant external capital and technical validation into the State. In addition to federal funding, companies often require supplemental state-level support to successfully compete for awards and advance projects toward commercialization. Your Committee further finds that other states have demonstrated that leveraging state funds to match federal research dollars accelerates commercialization, job creation, and the development of strategic sectors such as renewable energy technology, biotech, and ocean sciences. This measure aligns the State with best practices in technology-based economic development and strengthens the State's ability to attract and retain high-potential technology companies and entrepreneurs.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; 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 Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3084, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3084, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

LYNN DECOITE, Chair