STAND. COM. REP. NO. 2730
Honolulu, Hawaii
RE: S.B. No. 3000
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Twenty-Ninth State Legislature
Regular Session of 2018
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 3000, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO INNOVATION BUSINESS,"
begs leave to report as follows:
The purpose and intent of this measure is to support Hawaii-based businesses involved in research and development.
Specifically, this measure establishes the Research and Development Program within the Hawaii Technology Development Corporation to:
(1) Support product development, technology transfer, and commercialization;
(2) Provide funding to assist Hawaii-based businesses to reach commercial success and achieve significant product development;
(3) Retain in, and attract to, Hawaii technology employees, engineers, and scientists; and
(4) Keep technology companies in Hawaii.
Your Committee received written comments in support of this measure from the Hawaii Technology Development Corporation; Makai Ocean Engineering, Inc.; Oceanit Laboratories, Inc.; Navatek; Chamber of Commerce Hawaii; Oahu County Committee Legislative Priorities Committee of the Democratic Party of Hawaii; and three individuals.
Your Committee received written comments on this measure from the Department of Budget and Finance.
Your Committee finds that the vision of the Hawaii Technology Development Corporation is to create 80,000 new innovation jobs in Hawaii earning $80,000 or more by the year 2030. This measure will help to expand the benefits provided by federal research and development tax credits to Hawaii companies, by providing additional funding for those companies to develop their products, reach technical milestones, and achieve commercial success.
Your Committee has amended this measure by:
(1) Clarifying that the activities of the Research and Development Program shall be subject to available funds;
(2) Clarifying language concerning the duties of the program;
(3) Specifying how proof of federal research and development tax credits received by Hawaii-based small businesses shall be provided to the program;
(4) Clarifying that funding provided by the program shall be in the form of a grant;
(5) Defining the terms "Hawaii-based small business" and "resident";
(6) Changing the effective date to July 1, 2050, to facilitate further
discussion on the measure; and
(7) Making technical nonsubstantive amendments for purposes of style,
clarity, and consistency.
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. 3000, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3000, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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