STAND. COM. REP. NO. 440

Honolulu, Hawaii

, 2021

RE: H.B. No. 862

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 862 entitled:

"A BILL FOR AN ACT RELATING TO STATE GOVERNMENT,"

begs leave to report as follows:

The purpose of this measure is to abolish the Office of Aerospace Development, Aerospace Advisory Committee, Hawaii Unmanned Aerial Systems Test Site Advisory Board, and Pacific International Space Center for Exploration Systems.

Your Committee received testimony in opposition to this measure from the Department of Business, Economic Development, and Tourism; Pacific International Space Center for Exploration Systems; Hawaii Island Economic Development Board, Inc.; Challenger Center Hawaii; International MoonBase Alliance; and seventeen individuals. Your Committee received comments on this measure from the Department of Education.

Your Committee finds that while Hawaii plays an important role in the development of the aerospace industry, given the current economic situation in the State, it is critical for the State to consider reallocating its limited resources by eliminating certain state agencies. While recognizing the need to reallocate resources, your Committee also recognizes the vital role that the Pacific International Space Center for Exploration Systems plays in facilitating aerospace economic development projects, workforce development, and outreach programs.

Accordingly, your Committee has amended this measure by:

(1) Deleting its contents and inserting language that:

(A) Abolishes the Office of Aerospace Development, Aerospace Advisory Committee, and the Hawaii Unmanned Aerial Systems Test Site Advisory Board; and

(B) Makes conforming amendments associated with the Pacific International Space Center for Exploration Systems; and

(2) Inserting an effective date of July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 862, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 862, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

SEAN QUINLAN, Chair