STAND. COM. REP. NO. 2308

Honolulu, Hawaii

RE: S.B. No. 3166

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. 3166 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 appropriate funds to establish one full-time equivalent permanent Advanced Manufacturing and Cybersecurity Specialist position and one full‑time equivalent permanent Marketing and Branding Specialist position within the Hawaii Technology Development Corporation.

Your Committee received testimony in support of this measure from the Hawaiʻi Technology Development Corporation; Hawaii Food Industry Association; Normal Corporation; Nāmaka Algae, Inc.; Piʻiku Co.; PacMar Technologies; Hub Coworking Hawaii; Pacific Impact Zone; Hawaiian King Candies, LLC; Island Princess; Coffees of Hawaii; Chamber of Commerce Hawaii; and one individual.

Your Committee finds that advanced manufacturing and cybersecurity are critical components for the growth of the State's technology sector, including the blue economy, aerospace, renewable energy, and research and development initiatives. Despite its growth in recent years, the manufacturing sector remains underrepresented in the State compared to national averages, partially due to insufficient internal capacity and a lack of sustained investment in the Corporation to support local businesses. This measure aligns that State with best practices in technology-driven economic development by utilizing targeted expertise and effective outreach to foster innovation clusters and support commercialization.

Your Committee has amended this measure by:

(1) Changing the appropriation amount from:

(A) $100,000 to an unspecified amount for the establishment of one full-time equivalent permanent Advanced Manufacturing and Cybersecurity Specialist position within the Hawaii Technology Development Corporation to lead statewide initiatives; and

(B) $100,000 to an unspecified amount for the establishment of one full-time equivalent permanent Marketing and Branding Specialist position with the Hawaii Technology Development Corporation to support the Corporation's strategic plan,

to encourage further discussion on the measure;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; 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 Economic Development and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3166, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3166, 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,

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LYNN DECOITE, Chair