Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 716

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


   Your Committee on Economic Development, to which was
referred S.B. No. 716 entitled: 


begs leave to report as follows:

   The purpose of this measure is to authorize the Natural
Energy Laboratory of Hawaii Authority (NELHA) to include retail
or commercial enterprises, and retail, commercial, and tourism
activities within its research and technology park.

   Your Committee received testimony in support of this measure
from the Department of Business, Economic Development, and
Tourism and the Natural Energy Laboratory of Hawaii Authority.

   Your Committee finds that NELHA is one of premier facilities
in the world for research, development, and commercialization of
aquaculture and natural energy resources.  While much of the
funding for this work has previously come from the State and
federal government, these funds have been greatly reduced and
other sources of income must be developed.

   Your Committee further finds that NELHA has explored a
variety of options to increase private investment in the
facility, and that retail concession activities have the
potential to generate significant additional revenues and to
reduce dependency on public funding.

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                                STAND. COM. REP. NO. 5
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   In addition, your Committee understands that it is the
intent of the NELHA to locate these new income producing
activities away from the site of the current research facilities.
Locating the retail and commercial enterprises on NELHA property
near the highway will attract a larger clientele, both residents
and tourists, and ensure that these activities do not unduly
impact the ongoing research of NELHA.

   As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 716 and recommends that it pass Second Reading and be
referred to the Committee on Ways and Means.

                                Respectfully submitted on
                                behalf of the members of the
                                Committee on Economic

                                LORRAINE R. INOUYE, Chair

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