STAND. COM. REP. 2991

Honolulu, Hawaii

, 2004

RE: H.B. No. 2739

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Science, Arts, and Technology, to which was referred H.B. No. 2739, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS BY THE HIGH TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds by the High Technology Development Corporation to finance wet lab space and a biotech incubator at Kakaako, near the University of Hawaii, John A. Burns School of Medicine research facility.

Testimony in support of the measure was received from the Department of Business, Economic Development, and Tourism; the High Technology Development Corporation; and the University of Hawaii, John A. Burns School of Medicine. Offering comments on the measure was the Department of Budget and Finance.

Your Committee finds that a shortage of sufficient wet lab space and the lack of a biotech incubator in Hawaii are significant impediments to the growth of a vibrant biotechnology industry in Hawaii. Biotechnology-related research and development generates billions of dollars in revenue annually and creates numerous high paying jobs. Your Committee finds that Hawaii is uniquely positioned to take a leadership role in this field as evidenced by the innovative and ground-breaking biotechnology-related research presently being conducted at both the University of Hawaii and private biotechnology companies based in Hawaii. In order to support these ongoing research efforts, it is necessary to construct additional wet lab space and a biotech incubator.

Your Committee is aware of the concerns raised by the Department of Budget and Finance regarding potential constitutional issues in relation to the High Technology Development Corporation issuing special purpose revenue bonds for the construction of wet lab space and a biotech incubator on behalf of the University of Hawaii. However, testimony submitted by the High Technology Development Corporation stated that it was currently engaged in ongoing negotiations with a number of private developers interested in constructing a biotechnology facility at Kakaako. In light of these negotiations, the High Technology Development Corporation requested that the measure be allowed to pass out of committee without identifying a potential developer until negotiations have been concluded and the developer's identity ascertained. Further, the High Technology Development Corporation stated that it would cooperate with the Department of Budget and Finance to address the Department's concerns.

Your Committee has amended this measure by making technical, non-substantive amendments.

As affirmed by the record of votes of the members of your Committee on Science, Arts, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2739, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2739, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Science, Arts, and Technology,

____________________________

DAVID Y. IGE, Chair