STAND. COM. REP. NO. 3000

Honolulu, Hawaii

RE: H.B. No. 3057

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Media, Arts, Science, and Technology, to which was referred H.B. No. 3057, H.D. 1, entitled:

"A BILL FOR AN ACT MAKING AN APPROPRIATION TO THE HIGH TECHNOLOGY DEVELOPMENT CORPORATION,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds to the High Technology Development Corporation (HTDC) for the Small Business Innovation Research (SBIR) Grant Program, the Small Business Technology Transfer (STTR) Program, and the Phase 0 Competition Assistance Program.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism, the High Technology Development Corporation, the Hawaii Aquaculture Association, the Hawaii Science and Technology Council, and the Chamber of Commerce of Hawaii.

Since its inception in 1989, the SBIR Grant Program has assisted in increasing the number of research and development projects and small start-up technology companies in the State. A state investment of $3,700,000 has returned $56,500,000 in federal research dollars to the State and $57,500,000 in investments from and commercial contracts with public and private sectors. The STTR Progam is similar to the SBIR Program, but additionally requires that a percentage of the project work be performed by a research institution located in the State. The combined SBIR, SSTR, and Phase 0 Competition Assistance Programs can do more to support the growth of Hawaii's technology industries, such as the agricultural research and development industry, if their funding is increased. Annual funding since 1989 has remained relatively at the same level as growth in the number of technology companies receiving federal awards or grants has increased significantly.

Your Committee finds that promoting the development of Hawaii's science and technology sector is one of the key components of the State's efforts in diversifying and expanding the state economy. Essential to this effort is moving the research knowledge beyond the development stage and into commercialization. Your Committee further finds that an appropriation to fund the SBIR Program will enable the State to meet the demands of a growing science and technology sector and to expand the SBIR program to include the STTR Program and the Phase 0 Competition Assistance Program.

Your Committee has amended this measure by changing the effective date from July 1, 2020 to July 1, 2006.

As affirmed by the record of votes of the members of your Committee on Media, Arts, Science, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3057, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3057, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Media, Arts, Science, and Technology,

____________________________

CAROL FUKUNAGA, Chair