STAND. COM. REP. NO. 307-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2500
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Economic Development and Business
Concerns and Higher Education and Energy and Environmental
Protection, to which was referred H.B. No. 2500 entitled: 

     "A BILL FOR AN ACT RELATING TO TECHNOLOGY DEVELOPMENT,"

beg leave to report as follows:

     The purpose of this bill, as received by your Committee, is
to consolidate the State's technology activities by:

     (1)  Repealing the High Technology Development
          Corporation(HTDC) under Chapter 206M, Hawaii Revised
          Statutes (HRS); the Hawaii Strategic Development
          Corporation (HSDC) under Chapter 211F, HRS; and the
          Natural Energy Laboratory of Hawaii Authority (NELHA)
          under Chapter 227D, HRS, and establishing these three
          agencies and the Energy, Resources, and Technology
          Division of the Department of Business, Economic
          Development, and Tourism (DBEDT) under a newly-
          established Hawaii Technology Development Corporation
          within DBEDT for administrative purposes;

     (2)  Establishing the Hawaii Venture Capital Special Fund
          for seed capital and venture capital investment in
          technology development in Hawaii;

     (3)  Creating the Hawaii Technology Special Fund for the
          operations of the newly-established Hawaii Technology
          Development Corporation; and

 
 
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     (4)  Requiring the Governor to:

          (a)  Select a management team and appoint a
               representative from the Governor's Office to
               spearhead the management team to develop
               transition plans for consolidation so the newly-
               established Hawaii Technology Development
               Corporation can be operational by July 1, 2001;
               and

          (b)  Submit a progress report on the transition plans
               for consolidation to the Legislature prior to the
               Regular Session of 2001.

     DBEDT submitted testimony in support of this measure.  HTDC
testified in support of the intent of the measure.  The HSDC
Board and an individual testified in opposition to the measure.
Comments were received from the Governor's Special Advisor of
High Technology Development, the Hawaii Island Economic
Development Board, and an individual.

     Your Committees recognize the advantages of consolidating
Hawaii's technology-related agencies and activities under a
single agency for greater coordination, efficiency, and cost-
effectiveness.  However, it is your Committees' belief that any
such action must be conducted in an organized and well-thought
manner, and, therefore, planning is essential to this effort.

     Upon consideration, your Committees have amended this bill
by deleting its substance and inserting new material, the purpose
of which is to require the Governor's Special Advisor of High
Technology Development to:

     (1)  Develop a plan to organize DBEDT's Energy, Resources,
          and Technology Division into what will become the
          newly-established High Technology Development
          Corporation; and

     (2)  Submit the plan, recommendations, and report of the
          actions taken pursuant to this bill to the Legislature
          prior to the convening of the Regular Session of 2001.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Business Concerns and
Higher Education and Energy and Environmental Protection that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 2500, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as H.B. No. 2500, H.D. 1, and be referred to the Committee on
Finance.

 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Business
                                   Concerns and Higher Education
                                   and Energy and Environmental
                                   Protection,

                                   
                                   
                                   
                                   
                                   ______________________________
                                   ROBERT N. HERKES, Chair
                                   
                                   
                                   
                                   
______________________________     ______________________________
DAVID MORIHARA, Chair              HERMINA M. MORITA, Chair