STAND. COM. REP. NO. 655

                                   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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 716 entitled: 

     "A BILL FOR AN ACT RELATING TO THE NATURAL ENERGY
     LABORATORY,"

begs leave to report as follows:

     The purpose of this bill is to allow the Natural Energy
Laboratory of Hawaii Authority to include retail and commercial
enterprises utilizing or supporting the utilization of natural
resources or geothermal energy within the Authority's research
and technology park.

     In addition, this bill:

     (1)  Removes the limit on the number and kinds of concession
          and tour-related activities that can be conducted by
          the Authority to financially support the research,
          development, and commercialization of natural energy
          resources at the research and technology park;

     (2)  Requires the Authority to establish, manage, and
          operate facilities that provide sites for compatible
          businesses engaged in retail, commercial, or tourism
          activities;


 
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     (3)  Removes the limit on the number and kinds of concession
          and tour-related activities that can be conducted by
          the Authority to financially support other than the
          research, development, and commercialization of natural
          energy resources at the research and technology park;

     (4)  Allows the Authority to support the commercialization
          of natural resources available at the research and
          technology park if their commercialization is
          compatible with the retail, commercial, and tourism
          activities of the park; and

     (5)  Allows the Authority to attract new, appropriate
          retail, commercial, and tourism uses of natural
          resources in Hawaii.

     Your Committee finds that the Authority operates one of the
premier facilities in the world for the 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 governments, these
funds have been greatly reduced and other sources of income must
be developed.  Your Committee also finds that the Authority has
explored a variety of options to increase private investment in
its facility, and that retail concession activities have the
potential to generate significant additional revenues and to
reduce the Authority's dependency on public 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.
716 and recommends that it pass Third Reading.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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