STAND. COM. REP. NO. 1077-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2420
                                     S.D. 2
                                     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, to which was referred S.B. No.
2420, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO TECHNOLOGY,"

beg leave to report as follows:

     The purpose of this bill is to establish the New Economy
Technology Scholarship Program (Program) to:

     (1)  Create a sustained pool of highly-trained technology
          workers in the shortest time possible; and

     (2)  Encourage Hawaii students to pursue higher education
          and training in science and technology fields.

This bill also appropriates funds to establish and implement the
Program.

     The Department of Accounting and General Services, the High
Technology Development Corporation (HTDC), the Hawaii Educational
Networking Consortium, and the Hawaii Technology Trade
Association testified in support of this measure.  An individual
also testified in support of the bill with revisions.  The
Governor's Special Advisor on Technology Development testified in
support of the intent of the measure.  


 
 
 
                                 STAND. COM. REP. NO. 1077-00
                                 Page 2

 
     Your Committees have amended this bill by deleting its
contents and inserting new provisions to:

      (1) Allow HTDC to issue special purpose revenue bonds and
          special facility revenue bonds for the development of
          high technology projects;

      (2) Provide tax credits to encourage research and
          development for intellectual properties;

      (3) Allow the Board of Trustees of the Employees'
          Retirement System (ERS) to invest ten percent of ERS
          funds in qualified technology businesses;

      (4) Appropriate funds for educational programs under the
          Department of Education, the Pacific Center for
          Advanced Technology Training, and the University of
          Hawaii;

      (5) Exempt the members of the Governor's Special Advisory
          Council for Technology Development from the Senate
          confirmation process and from the need to file a
          disclosure of financial interests with the State Ethics
          Commission;

      (6) Develop partnerships between the Hawaii Tourism
          Authority and Hawaii's business community to promote
          the State as a place to do high technology business;

      (7) Give increased autonomy and authority to the High
          Technology Development Corporation (HTDC) over its
          fiscal and personnel matters;

      (8) Establish the Hawaii Venture Capital Technology
          Revolving Fund;

      (9) Require HTDC to establish programs for seed capital
          assistance, venture capital assistance, and capital
          access;

     (10) Put the Chief Executive Officer of HTDC, the Executive
          Director of the Natural Energy Laboratory of Hawaii
          Authority, and the President of the Hawaii Strategic
          Development Corporation on each others' boards; and

     (11) Make technical, nonsubstantive amendments for clarity,
          consistency, and style.


 
                                 STAND. COM. REP. NO. 1077-00
                                 Page 3

 
     As affirmed by the records of votes of the members of your
Committees on Economic Development and Business Concerns and
Higher Education that are attached to this report, your
Committees are in accord with the intent and purpose of S.B. No.
2420, S.D. 2, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as S.B. No. 2420, S.D.
2, H.D. 1, and be referred to the Committee on Finance.

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

                                   
                                   
                                   
                                   
______________________________     ______________________________
DAVID MORIHARA, Chair              ROBERT N. HERKES, Chair