STAND. COM. REP. NO. 2973

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 Ways and Means, 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 and intent of this measure is to support the State's small businesses and make more businesses eligible for federal grants by expanding the scope of grants that the Hawaii Technology Development Corporation may provide.

Specifically, the measure amends section 206M-15, Hawaii Revised Statutes, to authorize the Hawaii Technology Development Corporation to provide grants to any business in Hawaii that:

(1) Applies for a federal research and development grant, in an amount not to exceed $3,000; or

(2) Receives a federal research and development award or contract from a participating federal agency that requires a non‑federal funding match on a matching basis, in an amount not to exceed fifty percent of the amount of the required non‑federal share.

Your Committee received written comments in support of this measure from Department of Business, Economic Development, and Tourism; Hawaii Technology Development Corporation; Nalu Scientific, LLC; Oceanit; Simonpietri Enterprises LLC; Aloha Shoyu Company, Ltd.; Holomua Collaborative; Chamber of Commerce Hawaii; Hawaii Innovation, Inc.; CivicNexus; Malolo Enterprises, Inc; Neuromuse LLC; Hawaii Ocean Power Solutions LLC; WaiHome; and one individual.

Your Committee recognizes that many federal research and development grants require grant recipients to receive matching funds from state or other non-federal sources. Your Committee also recognizes that, although section 206M-15, Hawaii Revised Statutes, currently authorizes the Hawaii Technology Development Corporation to provide grants to businesses applying for federal small business innovation research or small business technology transfer grants, the statute does not expressly authorize the provision of state grants to support applicants for other federal research and development grants or the recipients of other federal awards or contracts that have matching fund requirements. Your Committee believes that this measure's amendments to section 206M‑15, Hawaii Revised Statutes, will help the State's qualifying small businesses obtain much-needed funding.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3084, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair