STAND. COM. REP. NO. 1401

 

Honolulu, Hawaii

 

RE: H.B. No. 624

H.D. 1

S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

Your Committees on Energy, Economic Development, and Tourism and Higher Education, to which was referred H.B. No. 624, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE STRUCTURE OF GOVERNMENT,"

 

beg leave to report as follows:

 

The purpose and intent of this measure is to repeal and transfer the rights, powers, functions, and duties of the Hawaii Technology Development Corporation and Hawaii Strategic Development Corporation to the University of Hawaii.

 

Your Committees received testimony in opposition to this measure from the Hawaii Technology Development Corporation. Your Committees received comments on this measure from the University of Hawaii System and Hawaii Strategic Development Corporation.

 

Your Committees find that in order to be competitive in a global economy, the State must have a strong, technology-based economic development strategy. Your Committees also find that the Department of Business, Economic Development, and Tourism currently houses many technology-focused programs, such as the Hawaii Technology Development Corporation and Hawaii Strategic Development Corporation, but these programs are not strategically aligned. In order to improve technology-based economic development in the State, these technology-focused programs need to be defined and aligned on common strategic objectives and an efficient and effective organizational structure.

 

Your Committees have heard concerns raised in testimony regarding the drawbacks of transferring the Hawaii Technology Development Corporation and Hawaii Strategic Development Corporation from the Department of Business, Economic Development, and Tourism to the University of Hawaii, as proposed by this measure, and finds that these actions may be premature.

 

Your Committees note that S.B. No. 990, S.D. 2 (Regular Session of 2019), also relates to technology-based economic development strategies and find that the language in S.B. No. 990, S.D. 2, is preferable because it does not transfer state technology agencies but instead orders a study to be conducted in order to assess how best to structure and align state departments and technology agencies.

 

Accordingly, your Committees have amended this measure by:

 

(1) Deleting its contents and inserting the contents of S.B. No. 990, S.D. 2, a measure that:

 

(A) Requires the Department of Business, Economic Development, and Tourism to engage a consulting firm to conduct a study to evaluate policies and organizational changes needed within the Department that will enable the State to successfully execute a technology-based economic development strategy;

 

(B) Appropriates an unspecified amount of funds for the Department of Business, Economic Development, and Tourism to engage the consulting firm to conduct the study; and

 

(C) Inserts an effective date of upon approval with the appropriation to take effect on July 1, 2050;

 

(2) Inserting an appropriation amount of $70,000 for the study; and

 

(3) Changing the effective date for the appropriation to July 1, 2019.

 

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 624, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 624, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Higher Education,

 

________________________________

DONNA MERCADO KIM, Chair

 

________________________________

GLENN WAKAI, Chair