STAND. COM. REP. NO.  70-20


Honolulu, Hawaii

                , 2020


RE:   H.B. No. 2256

      H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii




     Your Committee on Lower & Higher Education, to which was referred H.B. No. 2256 entitled:




begs leave to report as follows:


     The purpose of this measure is to remove the sunset provision of Act 38, Session Laws of Hawaii 2017 (Act 38), making permanent certain exemptions from the Ethics Code as related to technology transfer activities sponsored by the University of Hawaii.


     Your Committee received testimony in support of this measure from the University of Hawaii, Hawaii Business Roundtable, Hawaii Technology Development Corporation, Spectrum Photonics, Hawaii Venture Capital Association, Radial 3D Inc., Mana Up, Chamber of Commerce Hawaii, and Adnoviv, Inc.  Your Committee received testimony in opposition to this measure from the Hawaii State Ethics Commission.


Your Committee finds that Act 38 facilitated the University of Hawaiiꞌs contribution to research commercialization and economic development for the State by clarifying and updating the application of ethics principles set forth in the state code of ethics to technology transfer activities sponsored by the university.  A sunset date of June 30, 2022, was included in Act 38.  Your Committee finds that it is a matter of statewide concern to support the timely and efficient commercialization of intellectual property created by basic and applied research at the University of Hawaii, and that extending Act 38 will allow the University to continue its contribution to research commercialization and economic development.


     Your Committee has amended this measure by:


     (1)  Removing the repeal of Act 38's sunset date and instead changing the sunset date to June 30, 2025;


     (2)  Changing its effective date to July 1, 2050; and


     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.


     As affirmed by the record of votes of the members of your Committee on Lower & Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2256, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2256, H.D. 1, and be referred to your Committee on Judiciary.



Respectfully submitted on behalf of the members of the Committee on Lower & Higher Education,