STAND. COM. REP. NO. 2978

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1958

       H.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 1958, H.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:

 

     (1)  Appropriate funds to continue the Small Business Innovation Research program; and

 

     (2)  Authorize the Hawaii Technology Development Corporation to match a percentage of phase III awards or contracts of the federal Small Business Innovation Research program or Small Business Technology Transfer program that are funded by private sector or government sources outside of the program.

 

     Your Committee received testimony in support of this measure from the Hawaii Technology Development Corporation; Oceanit Laboratories, Inc.; Hawaii Evolutionary Development, LLC; TeleVoice 2000; Premier Solutions; Chamber of Commerce Hawaii; Marine Genetics; Makai Ocean Engineering, Inc.; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii; Kolohala Holdings, LP; DewPoint System, LLC; Jonah Heller, Creative; Spectrum Photonics; Jun Innovations, Inc.; Hawaii Fish Company; Nalu Scientific, LLC; Hyperspective Studios, Inc.; and four individuals.

 

     Your Committee finds that, pursuant to section 15-32-3, Hawaii Administrative Rules, the purpose of the Small Business Innovation Research program (SBIR) and Small Business Technology Transfer grant program (STTR) is to "provide funds to complement federal SBIR and STTR awards to increase the competitiveness of small businesses in Hawaii and to enhance their prospects for bringing subsequent SBIR and STTR awards of federal funds into the State . . ."  Your Committee further finds that phase I grants have been assisting small businesses since 1989.  In fiscal year 2015-2016, the Hawaii Technology Development Corporation began awarding the larger phase II and III grants to selected companies that have more difficult and commercially promising projects.

 

     Your Committee believes that supporting small businesses by allocating more funding through the SBIR and STTR programs will allow Hawaii businesses to sustain their businesses in a highly competitive market.  Your Committee notes that for every dollar that is invested through the SBIR program, companies in Hawaii have attracted over twenty federal dollars in return to the State, plus commercialization funding.  Your Committee believes that the grant program will provide a positive economic development value for the State by supporting projects with vetted technology and backed with federal funds.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1958, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development, Tourism, and Technology,

 

 

 

________________________________

GLENN WAKAI, Chair