Honolulu, Hawaii


RE: H.B. No. 583

H.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




Your Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 583, H.D. 1, entitled:




begs leave to report as follows:


The purpose and intent of this measure is to appropriate funds to the Hawaii Technology Development Corporation to continue its operations and administration and its various programs, thereby providing additional time to develop public-private partnerships for a new incubator facility for small businesses, which will generate revenue for the Development Corporation's operating expenses.


Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Technology Development Corporation; Kuehnle AgroSystems, Inc.; Bright Light Digital; HI FusionED; Hawaii Evolutionary Development, LLC; TeleVoice 2000; Big Wave Digital Services; Blue Startups; Hawaii Food Industry Association; Chamber of Commerce Hawaii; Carbon Buddy, LLC; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii; DewPoint System, LLC; Io Quantitative, LLC; Nest Egg Guru, Inc.; USD Mint, Inc.; Kona-Kohala Chamber of Commerce; and six individuals.


Your Committee finds that the Hawaii Technology Development Corporation has been utilizing rent revenue received from the incubation program at the Manoa Innovation Center to fund half of its staff's salaries and all of its discretionary program funding. According to testimony received by your Committee, the Development Corporation was notified by the University of Hawaii System of the University's intention to terminate the lease at the Manoa Innovation Center, effective June 30, 2018, ultimately depleting the Development Corporation's funding by half.


While your Committee recognizes the generosity of the University of Hawaii by allowing the Development Corporation to continue to use the Manoa Innovation Center rent-free even after the lease ended in April of 2015, your Committee also recognizes the importance of the Development Corporation and believes that the Development Corporation requires funding from the Legislature to maintain its staff and programs, which significantly benefit the tech industry of Hawaii.


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. 583, 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,