STAND. COM. REP. NO. 1035

Honolulu, Hawaii

, 2005

RE: S.B. No. 1698

S.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Economic Development & Business Concerns, to which was referred S.B. No. 1698, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this bill is to support Hawaii's growing technology sector by:

(1) Providing a tax credit for contributions of money, goods, or in-kind services to establish or maintain technology laboratories in Hawaii's public schools;

(2) Appropriating funds for the expansion of Project EAST to four additional schools on two unspecified islands; and

(3) Appropriating dollar-for-dollar matching funds for the Economic Development Alliance of Hawaii to coordinate the marketing of Hawaii's technology companies and technological opportunities on the mainland.

Economic Development Alliance of Hawaii (Alliance) and Enterprise Honolulu testified in support of this bill. The Department of Business, Economic Development, and Tourism and the Department of Education supported the intent of this measure. The Department of Taxation testified in opposition to this bill. The Tax Foundation of Hawaii submitted comments.

Your Committee finds that the Alliance is a non-profit umbrella organization for the four county economic development boards. The Alliance estimates that the economic development boards miss as many as 100 mainland exhibitions and conferences where the Hawaii technology story could be presented. Local participation at these events is constrained by budget considerations and simply does not match the market emphasis and priorities committed to by technology sites presently established in areas such as the Raleigh-Durham triangle, San Antonio, and San Diego. This measure seeks to remedy this oversight by providing the necessary funds to allow the Alliance to coordinate the marketing of Hawaii's technology companies at mainland industry-wide exhibitions and conferences.

Your Committee further finds that providing training to develop a competent workforce is vital to the on-going success and growth of the local technology industry. This measure provides the resources to achieve this objective with the expansion of the Project EAST program and the tax credit for contributions to technology laboratories in Hawaii's public schools.

As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1698, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Education.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

 

____________________________

ROBERT N. HERKES, Chair