Honolulu, Hawaii



RE:    H.B. No. 2873

       H.D. 2

       S.D. 2




Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 2873, H.D. 2, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to increase the ability of the Pacific International Space Center for Exploration Systems ("PISCES") to make swift and independent decisions and take actions in the rapidly evolving aerospace sector to keep Hawaii competitive and attractive to industry partners.


     Specifically, this measure:


     (1)  Transfers PISCES from the University of Hawaii to the Department of Business, Economic Development, and Tourism; and


     (2)  Authorizes the issuance of general obligation bonds and appropriates funds to construct the PISCES aerospace research technology park project.


     Written comments in support of this measure were submitted by the Department of Business, Economic Development, and Tourism.


Your Committee finds that PISCES is an economic driver for the State and promotes the establishment and growth of new sustainable and green industries along with associated jobs, workforce development, internships, and education programs in science, technology, engineering, and math.  This measure will allow PISCES to work closely with the University of Hawaii while maintaining adequate flexibility to operate effectively within the fast-paced aerospace sector.


     Your Committee has amended this measure by:


     (1)  Changing the phrase "aerospace research technology park" to "aerospace technology research and development park" throughout the measure, to accurately reflect the nature of the initiative;


     (2)  Clarifying that the authorization and appropriation of general obligation bond funds is for the construction of the PISCES aerospace technology research and development park while the appropriation of general funds is to support the operation of PISCES;


     (3)  Deleting as members of the PISCES board of directors:  the Chancellor of the University of Hawaii at Hilo, three members of the aerospace industry, and two members from the international aerospace community; and adding to the PISCES board:  six members from government, industry, and academia, both national and international, with appropriate professional interests and backgrounds; and a representative from the National Aeronautics and Space Administration, who shall be invited to serve as an ex-officio non-voting member;


     (4)  Deleting as unnecessary the provision for initial staggered terms for the members of the board of directors;


     (5)  Requiring that the appointment of the PISCES executive director by the Director of Business, Economic Development, and Tourism be subject to confirmation by the PISCES board of directors;


     (6)  Deleting the reference to the "international lunar research park" because it is a future program that is not presently established at the aerospace technology research and development park;


     (7)  Changing the expending agency for the appropriations to the Department of Business, Economic Development, and Tourism;


     (8)  Changing the effective date of the measure to July 1, 2012, to coincide with the commencement of the 2012-2013 fiscal year; and


     (9)  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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2873, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2873, H.D. 2, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,