HOUSE OF REPRESENTATIVES |
H.B. NO. |
624 |
THIRTIETH LEGISLATURE, 2019 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO THE STRUCTURE OF GOVERNMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART
I
SECTION 1. The legislature finds that to be successful in the twenty-first century global economy, Hawaii must position itself as a leader in technology development, transfer, and commercialization. Significant progress has been made in past years through programs supported by federal and state initiatives, such as programs administered by the Hawaii technology development corporation, Hawaii strategic development corporation, and Hawaii technology development venture. However, the legislature believes that additional efforts are required to move Hawaii's technology industry to achieve local technology commercialization. Innovation in science and technology fields will not only enable the State to succeed in the global marketplace, but will also support the State's sustainable economic development goals to include a viable and vibrant technology and manufacturing labor force.
The purpose of this Act is to combine the
resources, duties, and responsibilities of the Hawaii technology development
corporation, Hawaii strategic development corporation, and a newly-established
Hawaii broadband office and establish a new entity to be known as the Hawaii
innovation technology and research corporation to:
(1) Promote, develop, and expand Hawaii's innovation and technology industry;
(2) Promote a more diverse economy that offers high quality, knowledge-based jobs; and
(3) Develop policy and resource allocations to enable and support start-up companies, sustain existing companies, and attract companies to relocate or establish offices in Hawaii.
PART II
SECTION 2. Chapter 206M, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part
. STRATEGIC
DEVELOPMENT programs
A.
General Provisions
§206M-A Hawaii innovation technology and research
corporation revolving fund. There is
established the Hawaii innovation technology and research corporation revolving
fund. The following moneys shall be
deposited into the Hawaii innovation technology and research corporation revolving
fund and shall not be considered part of the general fund: all moneys appropriated by the legislature,
received as repayments of loans, earned on investments, received pursuant to a
venture agreement, received as royalties, received as premiums or fees charged
by the corporation, or otherwise received by the corporation.
§206M-B Hydrogen
investment capital special fund. (a) There shall be established the hydrogen
investment capital special fund, into which shall be deposited:
(1) Appropriations made by the legislature to the fund;
(2) All contributions from public or private partners;
(3) All interest earned on or accrued to moneys deposited in the special fund; and
(4) Any other moneys made available to the special fund from other sources.
(b)
Moneys in the fund shall be expended by the corporation:
(1) To provide seed capital for and venture capital investments in private sector and federal projects for research, development, testing, and implementation of the Hawaii renewable hydrogen program, as set forth in section 196-10; and
(2) For any other purpose deemed necessary to carry out the purposes of section 196‑10.
§206M-C Contracts for services necessary for
management and operation of the corporation.
The corporation may contract with others, public or private, for the
provision of all or a portion of the services necessary for the management and
operation of the corporation. The
corporation may use all appropriations, grants, contractual reimbursements, and
all other funds not appropriated for a designated purpose to pay for the proper
general expenses and to carry out the purposes of the corporation.
§206M-D Actions of the corporation; guidelines.
(a) All actions taken by the
corporation shall be necessary to achieve the purposes and objectives of this
part. The corporation shall evaluate all
programs after three years to determine their effectiveness. The corporation shall establish rules to
assure equal opportunity to minority-owned businesses, and shall encourage the
development of minority-owned businesses.
The corporation shall support and encourage participation by Hawaii
companies in federal grant programs, such as the Small Business Innovation
Research Program.
(b)
Financial participation shall be made on the condition that the
recipient of the assistance shall utilize the money to assist economic
development projects within the State that have potential for creating new jobs
or retaining current jobs within the State.
(c)
Financial participation by the corporation in private financial
investment funds shall be made with the provision that the private fund shall
make investments in Hawaii in amounts at least equal to the amount of state
participation.
(d)
The corporation shall not make direct investments in individual
businesses except upon a two-thirds vote of the board in each case
considered. When deciding whether to
enter into a direct investment, the corporation shall consider whether:
(1) The project is economically sound;
(2) The project can be successfully completed;
(3) The project will promote economic diversification;
(4) The project is located in or will locate in the State and has a reasonable potential to create desirable employment opportunities for residents of the State;
(5) The project has been unable to obtain sufficient funding on reasonable terms through ordinary means; and
(6) The project can be partially financed through ordinary means at reasonable terms.
The
corporation shall not acquire securities to an extent that would provide the corporation
effective voting control of any enterprise after giving effect to the
conversion of all outstanding convertible securities of the enterprise.
(e)
Investments by the corporation to persons shall be made on the basis of
solicitation and a competitive technical review process, subject to the
availability of funds allocated to the corporation for making investments. Investments by the corporation shall not be
subject to chapter 42F. Any organization
applying for an investment shall meet the following standards:
(1) Have bylaws or policies that describe the manner in which business is conducted and policies relating to nepotism and management of potential conflict of interest situations;
(2) Be licensed and accredited, as applicable, in accordance with the requirements of federal, state, and county governments;
(3) Comply with applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or physical handicap; and
(4) Comply with other requirements as the board may prescribe.
§206M-E Business and industry evaluation and
priorities for job opportunity and economic development. The corporation shall develop procedures to
set priorities as to which types of businesses and industries are most likely
to provide significant opportunities for economic development and
diversification in the State, consistent with the purposes of this part. This evaluation shall take into account the
guidelines provided by the state plan for economic development. Based on these findings, the corporation
shall establish targets by which the operations and programs of the corporation
shall be guided.
§206M-F Confidentiality of trade secrets or the like;
disclosure of financial information.
Notwithstanding chapter 92, 92F, or any other law to the contrary, any
documents or data made or received by any member or employee of the
corporation, to the extent that the material or data consist of trade secrets,
commercial or financial information regarding the operation of any business
conducted by an applicant for, or recipient of, any form of assistance that the
corporation is empowered to render, or regarding the competitive position of
that applicant in a particular field of endeavor, shall not be a public record;
provided that if the corporation purchases a qualified security from an
applicant, the commercial and financial information, excluding confidential
business information, shall be deemed to become a public record of the corporation. If the information is made or received by any
member or employee of the corporation after the purchase of the qualified
security, it shall become a public record three years from the date the
information was made or received. Any
discussion or consideration of trade secrets or commercial or financial
information, shall be held by the board, or any subcommittee of the board, in
executive sessions closed to the public; provided that the purpose of any such
executive session shall be set forth in the official minutes of the corporation
and business which is not related to that purpose shall not be transacted, nor
shall any vote be taken during the executive sessions.
§206M-G Requests for assistance from the corporation;
procedure. (a) The board shall approve or disapprove
requests for assistance within ninety days of receiving a written
application. Upon written request by an
applicant, the board may reconsider its denial of an application for assistance
or may waive the ninety-day deadline for approving or disapproving an
application.
(b)
Any person who submits any statement, report, application, or other
document to the corporation which is known to the person to be false in any
material respect shall be guilty of a class C felony.
(c)
The corporation may condition any assistance of any type by placing
restrictions on the recipient in regard to the recipient's assets or
indebtedness or in any other manner deemed appropriate by the corporation. A recipient who accepts assistance from the
corporation shall be deemed to agree to be bound by any conditions or
restrictions imposed by the corporation.
§206M-H Private sector financial support. Significant private sector financial support
shall be associated with any economic development project for which the
corporation provides assistance.
§206M-I Limitations on debt owed to the corporation. Not more than $5,000,000 in financial
assistance, excluding rights and royalties under a venture capital agreement,
shall be provided to any one enterprise at any time. The direct investments of the corporation
shall not exceed five per cent of the assets of the corporation, excluding
rights and royalties under a venture capital agreement; provided that by a
two-thirds vote of the board, this amount may be increased to a limit of
twenty-five per cent of the total assets of the corporation.
§206M-J Limitation on liability. Chapters 661 and 662 or any other law to the
contrary notwithstanding, nothing in this part shall create an obligation,
debt, claim, cause of action, claim for relief, charge, or any other liability
of any kind whatsoever in favor of any person or entity, without regard to
whether that person or entity receives any benefits under this part, against
the State or its officers and employees.
The State and its officers and employees shall not be liable for the
results of any investment, purchase of securities, loan, or other assistance
provided pursuant to this part. Nothing
in this part shall be construed as authorizing any claim against the corporation
in excess of any note, loan, or other specific indebtedness incurred by the
corporation or in excess of any insurance policy acquired for the corporation
or its employees.
§206M-K HI growth initiative; report to legislature. The corporation shall
submit an annual report to the legislature no later than twenty days prior to
the convening of a regular session on the specific annual outcome achieved
through the activities and expenditures of the HI growth initiative.
§206M-L Annual audit. The books and records of the corporation shall be subject to an annual audit by an independent auditor.
§206M-M Cooperation with the corporation by state
agencies. Every state agency may
render services to the corporation upon request of the corporation.
B.
Program for Seed Capital Assistance
§206M-N Establishment. The corporation shall establish a program for
seed capital assistance.
§206M-O Seed capital investments. Subject to this subpart, the corporation
may invest in:
(1) A certified development company under sections 501 to 503 of the Small Business Investment Act of 1958 (15 U.S.C. 695 to 697) and the regulations adopted under those sections;
(2) A small business investment company under the Small Business Investment Act (15 U.S.C. 631 to 634, 636 to 649) and the regulations adopted under those sections;
(3) A minority enterprise small business investment corporation or equivalent venture capital corporation;
(4) A similar entity that may leverage its capital under a federal program; or
(5) A seed capital fund or partnership.
§206M-P Purposes and terms of investments. (a) Investments may be used for any purpose consistent with the purposes and objectives of this chapter, including but not limited to:
(1) Developing a working prototype;
(2) Preparing a development plan;
(3) Performing an initial market analysis;
(4) Organizing a management team; and
(5) Any other purpose reasonably related to an economic development project.
(b)
Investments may be made on such terms and conditions as the corporation
shall determine to be reasonable, appropriate, and consistent with the purposes
and objectives of this chapter.
C.
Program for Venture Capital Assistance
§206M-Q Establishment. The corporation shall establish a program for
venture capital.
§206M-R Venture capital investments. Subject to this subpart, the corporation
may invest in:
(1) A certified development company under sections 501 to 503 of the Small Business Investment Act of 1958 (15 U.S.C. 695 to 697) and the regulations adopted under those sections;
(2) A small business investment company under the Small Business Investment Act (15 U.S.C. 631 to 634, 636 to 649) and the regulations adopted under those sections;
(3) A minority enterprise small business investment corporation or equivalent venture capital corporation;
(4) A similar entity that may leverage its capital under a federal program; or
(5) A venture capital fund or partnership.
§206M-S Purposes and terms of investments. (a)
Investments may be used for any purpose consistent with the purposes and
objectives of this chapter.
(b)
Investments may be made on such terms and conditions as the corporation
shall determine to be reasonable, appropriate, and consistent with the purposes
and objectives of this chapter.
D.
Program for Capital Access
§206M-T Establishment. The corporation shall establish a program for
capital access.
§206M-U Financial assistance. The corporation, through the program for
capital access, may:
(1) Procure insurance, a guarantee, or a letter of credit from any source for all or a part of a loan, debenture, or lease of others, public or private, or a revenue bond issue of the State or other entity or authority authorized by law to issue revenue bonds; and
(2) Procure insurance, a guarantee, or a letter of credit for either a single loan, debenture, or lease or for any combination of loans, debentures, or leases, or a single revenue bond issue or for all or a part of any combination of revenue bond issues.
§206M-V Purposes and priorities required in the
procuring of insurance, loan guarantees, or letters of credit. (a)
Insurance, guarantees, or letters of credit procured pursuant to section
206M-U shall be procured only for economic development projects within the
State that are consistent with the purposes and objectives of this chapter.
(b)
The corporation shall give paramount priority in procuring insurance,
guarantees, and letters of credit to economic development projects that have
the greatest potential for creating new jobs or retaining current jobs within
the State.
§206M-W Conditions for procuring of insurance, loan
guarantees, or letters of credit. (a)
Insurance, guarantees, or letters of credit shall not be procured
pursuant to section 206M-U unless the corporation is assured that the loans,
debentures, or leases insured, or guaranteed, or for which letters of credit
are issued, shall be used to assist economic development projects that also
have significant private sector financial support.
(b)
Insurance, guarantees, or letters of credit may be procured on such
terms and conditions as the corporation, in its sole discretion, shall
determine to be reasonable, appropriate, and consistent with the purposes and
objectives of this chapter.
(c)
The corporation shall charge the lender or the borrower, or both, a fee
or premium for procuring loan, debenture, or lease insurance, guarantee, or a
letter of credit. Rules for premiums or
fees shall be established by the corporation.
§206M-X Program for capital access participation
agreements. The corporation shall
enter into agreements with lenders for participation in the program for capital
access that shall include but not be limited to:
(1) Authorization for the lender to determine, collect, and transmit to the corporation a fee or premium charge within a specified range established consistent with the purposes and objectives of the corporation;
(2) Specification of whether the premium charge shall be paid by the lender, the borrower, the corporation, or by a combination thereof in specified proportions;
(3) The procedure by which a lender may make a claim upon the corporation upon default by the borrower, and the conditions under which a claim may be made; and
(4) The maximum amount of claims a lender may make upon the corporation, which amount may be equal to or less than the proportion of the total premiums contributed by the corporation.
§206M-Y Establishment of special funds to secure loan
insurance obligations; source of funds.
The corporation may establish a special fund or funds for capital access
into which fees or premiums collected by the corporation are deposited.
E. Hawaii Technology
Investment Program
§206M-Z Definitions. As used in this subpart:
"Biotechnology" means fundamental
knowledge regarding the function of biological systems from the macro level to
the molecular subatomic levels that has application to development including
the development of novel products, services, technologies, and subtechnologies
from insights gained from research advances that add to that body of
fundamental knowledge.
"Computer data" means any
representation of information, knowledge, facts, concepts, or instructions that
is being prepared or has been prepared and is intended to be processed, is
being processed, or has been processed in a computer or computer network.
"Computer program" means an
ordered set of computer data representing coded instructions or statements,
that, when executed by a computer, causes the computer to perform one or more
computer operations.
"Computer software" means
computer data, a computer program, or a set of computer programs, procedures,
or associated documentation concerned with the operation and function of a
computer system, and includes both systems and application programs and subdivisions,
such as assemblers, compilers, routines, generators, and utility programs.
"Financial organization" means an
organization authorized to do business in Hawaii that is:
(1) Certified as an insurer by the insurance commissioner;
(2) Licensed or chartered as a financial institution by the commissioner of financial institutions;
(3) Chartered by an agency of the federal government;
(4) Subject to the jurisdiction and regulation of the federal Securities and Exchange Commission; or
(5) Any other entity otherwise authorized to do business in the State that meets the requirements of this subpart.
"Program" means the Hawaii
technology investment program.
"Program manager" means a
financial organization selected by the corporation to manage the program.
"Qualified high technology
business":
(1) Means a business, employing or owning capital or property, or maintaining an office, in this State that:
(A) Conducts more than fifty per cent of its activities in performing qualified research in this State; or
(B) Receives more than fifty per cent of its gross income derived from qualified research; provided that the income is received from:
(i) Products sold from, manufactured in, or produced in the State; or
(ii) Services performed in this State; and
(2) Does not include:
(A) Any trade or business involving the performance of services in the field of law, architecture, accounting, actuarial science, consulting, athletics, financial services, or brokerage services;
(B) Any banking, insurance, financing, leasing, rental, investing, or similar business; any business involving the production or extraction of products of a character with respect to which a deduction is allowable under section 611 (with respect to allowance of deduction for depletion), 613 (with respect to basis for percentage depletion), or 613A (with respect to limitation on percentage depleting in cases of oil and gas wells) of the Internal Revenue Code;
(C) Any business operating a hotel, motel, restaurant, or similar business; and
(D) Any trade or business involving a hospital, a private office of a licensed health care professional, a group practice of licensed health care professionals, or a nursing home.
"Qualified research" means:
(1) The same as in section 41(d) of the Internal Revenue Code;
(2) The development and design of computer software using fourth generation or higher software development tools or native programming languages to design and construct unique and specific code to create applications and design databases for sale or license; or
(3) Biotechnology,
provided
that more than fifty per cent of the business' activities are qualified
research.
§206M-AA Formation of Hawaii technology investment
program. (a) The corporation shall establish the Hawaii
technology investment program for the purpose of allowing individual investors
to contribute to the program to invest venture capital in businesses in Hawaii.
(b)
The corporation may implement the Hawaii technology investment program
through a regulated investment company under the terms and conditions
established by this section. The
corporation may make changes to the program as required for participants to
obtain the federal and state income tax benefits or treatment provided by
sections 851 to 855 of the federal Internal Revenue Code of 1986, as amended.
The corporation may establish a program in
which the dividends distributed by the regulated investment company are exempt
from income taxation under chapter 235.
If the corporation establishes a program that is proposed to be exempt
from income taxation under chapter 235, it shall furnish sufficient information
and notify the department of taxation and investors of the tax exempt status of
that program.
(c)
The corporation may implement the program through the use of financial
organizations as program managers. Under
the program, individuals may establish accounts directly with a program
manager.
(d)
The corporation may solicit proposals from one or more financial
organizations to act as a program manager.
Financial organizations submitting proposals shall describe the
investment instrument. The corporation
shall select as program managers the financial organizations from among the
bidding financial organizations that demonstrate the most advantageous combination,
both to potential program participants and this State, based on the following
factors:
(1) The financial stability and integrity of the financial organization;
(2) The ability of the financial organization to establish or act as a regulated investment company for the purposes of this subpart;
(3) The ability of the financial organization to satisfy recordkeeping and reporting requirements for the purposes of a program that allows a program that is exempt from taxation under chapter 235;
(4) The financial organization's plan for promoting the program and the resources it is willing to allocate to promote the program;
(5) The fees, if any, proposed to be charged to persons for opening accounts;
(6) The minimum initial deposit and minimum contributions, subject to this section that the financial organization will require; and
(7) Other benefits to the State or its residents included in the proposal, including fees payable to the State to cover expenses to operate the program.
(e)
The corporation may enter into a management contract of up to ten years
with a financial organization. The
financial organization shall provide investment instruments meeting the
requirements of this section. The
management contract shall include, at a minimum, terms requiring the financial
organization to:
(1) Take any action required to keep the program in compliance with requirements of this section and to manage the program to meet the requirements of sections 851 to 855 of the federal Internal Revenue Code of 1986, as amended;
(2) Keep adequate records of each account, keep each account segregated from each other's account, and provide the corporation with the information necessary to prepare any necessary statements;
(3) Provide the corporation with the information necessary to determine compliance with this section;
(4) Provide the corporation access to the books and records of the financial organization to the extent needed to determine compliance with the contract;
(5) Hold all accounts for the benefit of the account owner;
(6) Be audited at least annually by a firm of independent certified public accountants selected by the financial organization, and provide the results of the audit to the corporation; and
(7) Provide the corporation with copies of all regulatory filings and reports related to the program made by the financial organization during the term of the management contract or while it is holding any accounts, other than confidential filings or reports that will not become part of the program. The financial organization shall make available for review by the corporation, the results of any periodic examination of the financial organization by any state or federal banking, insurance, or securities commission, except to the extent that the report or reports may not be disclosed under applicable law or the rules of the examining agency.
(f)
The corporation may require an audit to be conducted of the operations
and financial position of the program manager at any time if the corporation
has any reason to be concerned about the financial position, the recordkeeping
practices, or the status of accounts of the program manager.
(g)
During the term of any contract with a program manager, the corporation
shall conduct an examination of the program manager and its handling of
accounts. The examination shall be
conducted at least biennially if the program manager is not otherwise subject
to periodic examination by the commissioner of financial institutions, the Federal
Deposit Insurance Corporation, or other similar entity.
(h)
If selection of a financial organization as a program manager is not
renewed, after the end of the term:
(1) Accounts previously established and held in investment instruments at the financial organization may be terminated;
(2) Additional contributions may be made to the accounts;
(3) No new accounts may be placed with the financial organization; and
(4) Existing accounts held by the financial organization shall remain subject to all oversight and reporting requirements established by the corporation.
If
the corporation terminates a financial organization as a program manager, the
corporation shall take custody of accounts held by the financial organization
and shall seek to promptly transfer the accounts to another financial
organization that is selected as a program manager and into investment
instruments as similar to the original instruments as possible.
(i)
The corporation may enter into contracts for the services of consultants
for rendering professional and technical assistance and advice and any other
contracts that are necessary and proper for the implementation of the program.
(j)
The program shall only allow contributions from individual investors in
amounts ranging from a minimum of $1,000 to a maximum of $100,000 per investor.
(k)
The program manager shall invest all contributions received from
investors in securities not limited to legal investments under state laws
relating to the investment of trust fund assets by trust companies, including
those authorized by article 8 of chapter 412.
Contributions shall be used for venture capital investment. Investment may be made in any manner the
program deems correct. If no venture
capital investment is available at the time a contribution is made to the
program, the program manager may invest the contribution in any manner allowed
a regulated investment company until a venture capital investment opportunity
occurs. While the program manager should
make a best effort to make venture capital investments as defined in section
206M-1, if no such venture capital investment is available in Hawaii, then the
program manager may make venture capital investments outside Hawaii.
§206M-BB Limitation of liability. In no case shall the corporation,
officers or employees of the corporation, or the State be liable for the
monetary losses of individuals contributing to the program. In all cases, the program manager shall
inform individual contributors of the risk involved in contributing to the
program."
SECTION 3. Chapter
206M, Hawaii Revised Statutes, is amended by amending its title to read as
follows:
"HAWAII
INNOVATION TECHNOLOGY [DEVELOPMENT] AND RESEARCH
CORPORATION"
SECTION 4. Chapter
206M, Hawaii Revised Statutes, is amended by amending the title of part I to
read as follows:
"PART
I. [Hawaii
Technology Development Corporation] General Provisions"
SECTION 5. Section
206M-1, Hawaii Revised Statutes, is amended as follows:
1.
By adding eight new definitions to be appropriately inserted and to read:
""Corporation" means the
Hawaii innovation technology and research corporation established by section
206M-2.
"Economic development project"
means an endeavor related to industrial, commercial, or advanced
technology-based agricultural enterprise.
"Economic development project" shall not include that portion
of an endeavor devoted to the construction of housing.
"Enterprise" means a person
with a place of business in Hawaii which is, or proposes to be, engaged in
business in Hawaii; provided that the endeavor shall not be devoted to the sale
of goods at retail, construction of housing, or tourism- related services.
"Minority-owned businesses"
means businesses at least fifty per cent owned, controlled, and managed by
socially or economically disadvantaged persons.
"Person" means a sole
proprietorship, partnership, joint venture, corporation, or other association
of persons organized for commercial or industrial purposes.
"Professional investor" means
any bank, bank holding company, savings institution, trust company, insurance
company, investment company registered under the federal Investment Company Act
of 1940, financial services loan company, pension or profit-sharing trust or
other financial institution or institutional buyer, licensee under the federal
Small Business Investment Act of 1958, or any person, partnership, or other
entity of whose resources a substantial amount is dedicated to investing in
securities or debt instruments and whose net worth exceeds $250,000.
"Seed capital" means financing
provided for the earliest stage of business development, including but not
limited to developing a working prototype, preparing a business plan,
performing an initial market analysis, or organizing a management team.
"Venture capital investment"
means any of the following investments in a business:
(1) Common or
preferred stock and equity securities without a repurchase requirement for at
least five years;
(2) A right to
purchase stock or equity securities;
(3) Any debenture
or loan, whether or not convertible or having stock purchase rights, which are
subordinated, together with security interests against the assets of the
borrower, by their terms to all borrowings of the borrower from other
institutional lenders, and that is for a term of not less than three years, and
that has no part amortized during the first three years; and
(4) General or limited partnership interests."
2.
By amending the definition of "board" to read:
""Board" means the board of
directors of the [development] corporation established in section
206M-2, and any successor thereto."
3.
By deleting the definition of "development corporation".
[""Development
corporation" means the Hawaii technology development corporation
established by section 206M-2."]
SECTION 6. Section 206M-2, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:
"§206M-2 Establishment of the Hawaii innovation
technology [development] and research corporation; purpose. (a)
There is established the Hawaii innovation technology [development]
and research corporation, which shall be a public body corporate and
politic and an instrumentality and agency of the State. The [development] corporation shall be
placed within the department of business, economic development, and tourism for
administrative purposes, pursuant to section 26-35. The purpose of the [development]
corporation shall be to facilitate the growth and development of the commercial
technology industry in Hawaii. Its
duties shall include[,] but not be limited to:
(1) Connecting
Hawaii-based technology companies and entrepreneurs to new market
opportunities;
[(1)] (2) Developing and encouraging industrial
parks as technology innovation centers and other technology infrastructure
projects and developing or assisting with the development of projects
within or outside of industrial parks, including participating with the private
sector in such development;
[(2) Providing
financial and other support and services to Hawaii-based technology companies;
(3) Collecting and
analyzing information on the state of commercial technology activity in Hawaii;
(4) Promoting and
marketing Hawaii as a site for commercial technology activity; and
(5) Providing
advice on policy and planning for technology-based economic development.]
(3) Encouraging,
initiating, and aiding in the development and commercialization of local
innovation and technology;
(4) Furnishing the
financial and other support and services to institute and grow local innovation
and technology;
(5) Developing policy
and resource allocations to enable and support start-up companies, sustain
existing companies, and attract companies to relocate or establish offices in
Hawaii;
(6) Attracting
resources from public and private sector organizations and agencies to develop
a local qualified innovation research and technology workforce;
(7) Coordinating
with other state agencies and entities to support the innovation and technology
industry;
(8) Collecting and
analyzing information on the state of local and global technology activity; and
(9) Taking any and
all other actions reasonably designed to promote the purposes of the
corporation in the interest of promoting the general welfare of the people of
the State.
(b)
The governing body of the [development] corporation shall consist
of a board of directors having [eleven] nine voting members. [Seven of the members shall be appointed
by the governor for staggered terms pursuant to section 26-34. Six of the appointed members shall be from
the general public and selected on the basis of their knowledge, interest, and
proven expertise in, but not limited to, one or more of the following
fields: finance, commerce and trade,
corporate management, marketing, economics, engineering, and
telecommunications, and other technology fields. The other appointed member shall be selected
from the faculty of the University of Hawaii.] The director of business, economic development, and tourism, and
an appointed member from the University of Hawaii, or their designated
representatives, shall serve as ex officio voting members of the board. All members shall have knowledge, interest,
and proven expertise in, but not limited to, one or more of the following
fields: finance, commerce and trade,
corporate management, marketing, economics, engineering, telecommunications,
and other technology fields. Seven of
the members shall be appointed by the governor pursuant to section 26-34 for
staggered terms; provided that membership shall include:
(1) Three members who
shall be appointed by the governor from a list of four nominees submitted by
the president of the senate, and three members who shall be appointed by the
governor from a list of four nominees submitted by the speaker of the house of
representatives; provided that if fewer than four nominees are submitted for
each appointment, the governor may disregard the list; and
(2) One member who shall
be appointed by the governor from the economic development board of Maui,
Kauai, or Hawaii county.
The
governor shall make board member appointments to ensure the fulfillment of all
requirements of paragraphs (1) and (2); provided that upon the occurrence of a
vacancy subject to paragraph (1), the governor shall notify the president of
the senate and the speaker of the house of representatives of any unfulfilled
requirements pursuant to paragraphs (1) and (2), and the president of the
senate or the speaker of the house of representatives, as appropriate, shall
submit nominees who fulfill the requirements pursuant to paragraphs (1) and (2). All appointed members of the board shall
continue in office until their respective successors have been appointed. [The director of business, economic
development, and tourism, the director of finance, an appointed member from the
board of the Hawaii strategic development corporation, and an appointed member
from the board of the natural energy laboratory of Hawaii authority, or their
designated representatives, shall serve as ex officio[,] voting members of the
board.] The director of business,
economic development, and tourism shall serve as the chairperson until such
time as a chairperson is elected by the board from the membership. The board shall elect [such] other
officers as it deems necessary."
SECTION 7. Section 206M-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The [development] corporation shall
have all the powers necessary to carry out its purposes, including the powers
to:
(1) Sue and be sued;
(2) Have a seal and alter the same at its pleasure;
(3) Make and execute, enter into, amend, supplement, and carry out contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter, including, with the approval of the governor, a project agreement, or an amendment or supplement to an existing project agreement, with a qualified person, and to enter into and carry out any agreement whereby the obligations of a qualified person under a project agreement shall be unconditionally guaranteed or insured by, or the performance thereof assigned to, or guaranteed or insured by, a person or persons other than the qualified person; and extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for the extension or renewal contained in a project agreement or related agreement theretofore approved by the governor;
(4) Make and alter bylaws for its organization and internal management;
(5) Adopt rules under chapter 91 necessary to effectuate this chapter in connection with industrial parks, projects, multi-project programs, and the operations, properties, and facilities of the corporation;
(6) Through its chief executive officer, appoint officers, agents, consultants, advisors, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;
(7) Prepare or cause to be prepared development plans for industrial parks;
(8) Acquire, own, lease, hold, clear, improve, and rehabilitate real, personal, or mixed property and assign, exchange, transfer, convey, lease, sublease, or encumber any project, including by way of easements;
(9) Acquire, construct, improve, install, equip, or develop or provide for the acquisition, construction, improvement, installation, equipping, or development of any project and designate a qualified person as its agent for such purpose;
(10) Own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any project;
(11) Arrange or initiate appropriate action for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, easements, or other places, the furnishing of improvements, the acquisition of property or property rights, or the furnishing of property or services in connection with an industrial park or project;
(12) Prepare, or cause to be prepared, plans, specifications, designs, and estimates of cost for the acquisition, construction, reconstruction, improvement, installation, equipping, development, or maintenance of any project or industrial park, and from time to time modify the plans, specifications, designs, or estimates;
(13) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;
(14) Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;
(15) Accept and expend gifts or grants in any form from any public agency or from any other source;
(16) Issue special purpose revenue bonds and refunding special purpose revenue bonds pursuant to and in accordance with this chapter in principal amounts as may be authorized from time to time by law to finance or refinance the cost of a project, singly or as part of a multi-project program, or an industrial park as authorized by law and provide for the security thereof as permitted by this chapter;
(17) Lend or otherwise apply the proceeds of the bonds issued for a project or an industrial park either directly or through a trustee to a qualified person for use and application by the qualified person in the acquisition, construction, improvement, installation, equipping, or development of a project or industrial park, or agree with the qualified person whereby any of these activities shall be undertaken or supervised by that qualified person or by a person designated by the qualified person;
(18) As security for the payment of the principal of, premium, if any, and interest of the special purpose revenue bonds issued for a project to:
(A) Pledge, assign,
hypothecate, or otherwise encumber all or any part of the revenues and receipts
derived or to be derived by the [development] corporation under the
project agreement for the project for which the bonds are issued;
(B) Pledge and assign
the interest and rights of the [development] corporation under the
project agreement or other agreement with respect to the project or the special
purpose revenue bonds;
(C) Pledge and assign
any bond, debenture, note, or other evidence of indebtedness received by the [development]
corporation with respect to the project; or
(D) Any combination of the foregoing;
(19) With or without
terminating a project agreement, exercise any and all rights provided by law
for entry and reentry upon or take possession of a project at any time or from
time to time upon breach or default by a qualified person under a project
agreement, including any action at law or in equity for the purpose of
effecting its rights of entry or reentry or obtaining possession of the project
or for the payments of rentals, user taxes, or charges, or any other sum due
and payable by the qualified person to the [development] corporation
pursuant to the project agreement;
(20) Enter into arrangements with qualified county development entities whereby the board would provide financial support to qualified projects proposed;
(21) Create an environment in which to support technology economic development, including but not limited to:
(A) Supporting all aspects of technology-based economic development;
(B) Developing instructive programs, identifying issues and impediments to the growth of technology industry in Hawaii; and
(C) Providing policy analysis and information important to the development of technology industries in Hawaii;
(22) Develop programs that support start-up and existing technology companies in Hawaii and attract new companies to relocate to or establish operations in Hawaii by assessing the needs of these companies and providing the physical and technical infrastructure to support their operations;
(23) Coordinate its efforts with other public and private agencies involved in stimulating technology-based economic development in Hawaii, including but not limited to:
(A) The department of business, economic development, and tourism;
(B) The Pacific international center for high technology research; and
(C) The office of technology transfer and economic development of the University of Hawaii;
(24) Promote and market Hawaii as a site for commercial technology activity, including the expenditure of funds for protocol purposes at the discretion of the board;
(25) Provide advice on policy and planning for technology-based economic development;
(26) Finance, conduct, or cooperate in financing or conducting technological, business, financial, or other investigations that are related to or likely to lead to business, technology, and economic development by making and entering into contracts and other appropriate arrangements, including the provision of loans, start-up and expansion capital, loan guaranty, loans convertible to equity, equity charged and received by the corporation, and other forms of assistance;
(27) Solicit, study, and assist in the preparation of business plans and proposals of new or established businesses;
(28) Provide advice, technical and marketing assistance, support, and promotion to enterprises in which investments have been made;
(29) Acquire, hold, and sell qualified securities;
(30) Consent, subject to the provisions of any contract with noteholders or bondholders, whenever the corporation deems it necessary or desirable in the fulfillment of the purposes of this chapter, to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, or any other terms, of any contract or agreement of any kind to which the corporation is a party;
(31) Invest any funds
held in reserves or sinking funds, or any funds not required for immediate
disbursement, in such investments as may be lawful for fiduciaries in the
State; [and]
(32) Coordinate
the corporation's programs with any education and training program;
(33) Carry
out specialized programs designed to encourage the development of new products,
businesses, and markets;
(34) Prepare,
publish, and distribute such technical studies, reports, bulletins, and other
materials as it deems appropriate, subject only to the maintenance and respect
for confidentiality of client proprietary information;
(35) Organize,
conduct, sponsor, or cooperate in and assist in the conduct of conferences,
demonstrations, and studies relating to the stimulation and formation of
businesses;
(36) Provide
and pay for such advisory services and technical, managerial, and marketing
assistance, support, and promotion as may be necessary or desirable to carry
out the purposes of this chapter;
(37) Accept
donations, grants, bequests, and devises of money, property, service, or other
things of value that may be received from the United States or any agency
thereof, any governmental agency, or any public or private institution, person,
firm, or corporation, to be held, used, or applied for any or all of the
purposes specified in this chapter. Receipt
of each donation or grant shall be detailed in the annual report of the
corporation. The report shall include
the identity of the donor or lender, the nature of the transaction, and any
conditions attaching thereto;
(38) Acquire
real property, or an interest therein, by purchase or foreclosure, where that
acquisition is necessary or appropriate to protect or secure any investment or
loan in which the corporation has an interest; sell, transfer, and convey the
property to a buyer and if the sale, transfer, or conveyance cannot be effected
with reasonable promptness or at a reasonable price, to lease the property to a
tenant;
(39) Acquire,
own, hold, dispose of, and encumber personal property of any nature, or any
interest therein;
(40) Enter
into agreements or other transactions with any federal, state, or county
agency;
(41) Appear
in its own behalf before state, county, or federal agencies;
(42) Appoint
advisory committees as deemed necessary; and
[(32)] (43) Do any and all things necessary or convenient
to carry out its purposes and exercise the powers given and granted in this
chapter."
PART III
SECTION 8. Chapter 206M, Hawaii Revised Statutes, is amended by replacing the term "development corporation" with the term "corporation", unless amended or otherwise specified in this Act.
SECTION 9. Sections 26-18(b), 171-2, 171-64.7(a), and 304A-3101(b), Hawaii Revised Statutes, are amended by substituting the term "Hawaii innovation technology and research corporation" wherever the term "Hawaii technology development corporation" appears.
SECTION 10. Section 210-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Subject to the availability of funds, a
request from the Hawaii innovation technology [development] and
research corporation for a transfer of funds to supplement appropriations
for small business innovation research grants shall be granted
expeditiously. If available funds are
inadequate for a transfer to the [development] corporation, the director
shall advise the [development] corporation that a transfer will be made
when sufficient funds are available [in the Hawaii capital loan revolving
fund]."
SECTION 11. Section 227D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The governing body of the authority shall
consist of a board of directors having [thirteen] twelve voting
members. Three members from the general
public shall be appointed by the governor for staggered terms pursuant to
section 26-34, except that one of these members shall be a resident of the
county of Hawaii. The members shall be
selected on the basis of their knowledge, interest, and proven expertise in,
but not limited to, one or more of the following fields: finance, commerce and trade, corporate
management, marketing, economics, engineering, energy management, real estate
development, property management, aquaculture, and ocean science. The chairperson and secretary of the research
advisory committee shall serve on the board. The director of business, economic
development, and tourism, the chairperson of the board of land and natural
resources, the president of the University of Hawaii, the mayor of the county
of Hawaii, [an appointed member from the board of the Hawaii technology
development corporation,] and an appointed member from the board of the
Hawaii [strategic development] innovation technology and research
corporation, or their designated representatives, shall serve as ex officio,
voting members of the board. The tenants
of the authority shall elect two members to the board from among the tenants of
the authority, of which one member shall serve a two-year term, and one member
shall serve a four-year term. In
electing the tenant members, each tenant shall be entitled to cast one vote for
each member position. The tenant members
shall be recused from voting on setting lease rents, water rates, or utility
rates, but may participate in discussions.
The director of business, economic development, and tourism shall serve
as the chairperson until such time as a chairperson is elected by the board
from the membership. The board shall
elect other officers as it deems necessary."
SECTION 12. Section 304A-1959, Hawaii Revised Statutes, is amended to read as follows:
"§304A-1959 Biennial
report. No later than twenty days prior to the
convening of the regular session of each odd-numbered year, the University of
Hawaii shall submit a report to the legislature concerning:
(1) All funds
deposited into the university innovation and commercialization initiative special fund and a detailed description of
the use of those funds; and
(2) Coordinated efforts between the innovation and commercialization initiative program and other state agencies,
including the Hawaii innovation technology [development] and
research corporation[, the Hawaii strategic development corporation,]
and the Hawaii state energy office, to move the State's innovation goals
forward, and to more efficiently and effectively utilize resources to achieve
these outcomes."
SECTION 13. Section 394-8, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The department shall utilize the resources of
the University of Hawaii, including the community college system, the Hawaii innovation
technology [development] and research corporation, and other
educational and training resources in the public and private sectors throughout
the State as may be appropriate to be used to provide preemployment or
employment training or on-the-job training for local residents hired by
businesses relocating to Hawaii or expanding their local operations. Training
may include but not be limited to training in entrepreneurship, capital
formation, start-up, and business plans. The department
may contract for these training needs from public agencies including the
various University of Hawaii campuses, private educational institutions,
nonprofit corporations, or private entities in order to provide the required
training."
PART IV
SECTION 14. Chapter 211F, Hawaii Revised Statutes, is repealed.
SECTION
15. On July 1, 2020, the terms of the board members of the Hawaii
strategic development corporation shall expire.
SECTION 16. All rights, powers, functions, and duties of the Hawaii technology development corporation and Hawaii strategic development corporation are transferred to the Hawaii innovation technology and research corporation.
All employees who occupy civil service positions and whose functions are transferred to the Hawaii innovation technology and research corporation by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.
Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The chief executive officer may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.
SECTION 17. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the Hawaii technology development corporation and Hawaii strategic development corporation relating to the functions transferred to the Hawaii innovation technology and research corporation shall be transferred with the functions to which they relate.
SECTION 18. All rules, policies, procedures, guidelines, and other materials adopted or developed by the Hawaii technology development corporation and Hawaii strategic development corporation to implement provisions of the Hawaii Revised Statutes, which are made applicable to the Hawaii innovation technology and research corporation by this Act, shall remain in full force and effect until amended or repealed by the department of business, economic development and tourism pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the Hawaii technology development corporation or Hawaii strategic development corporation in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii innovation technology and research corporation as appropriate.
SECTION 19. All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the Hawaii technology development corporation or Hawaii strategic development corporation pursuant to the provisions of the Hawaii Revised Statutes, which are made applicable to the Hawaii innovation technology and research corporation by this Act, shall remain in full force and effect. Upon the effective date of this Act, every reference to the Hawaii technology development corporation or Hawaii strategic development corporation therein shall be construed as a reference to the Hawaii innovation technology and research corporation as appropriate.
PART
V
SECTION 20. Section 206M-15.5, Hawaii Revised Statutes, is amended to read as follows:
"§206M-15.5 Technology special fund. There is established in the state treasury a fund to be known as the technology special fund, into which shall be deposited, except as otherwise provided by section 206M-17:
(1) Any appropriations or other funds required to be deposited by law; and
(2) All moneys, fees, and equity from tenants, qualified persons, or other users of the development corporation's industrial parks, projects, other leased facilities, and other services and publications;
provided that the total amount of moneys in the fund
shall not exceed [$3,000,000] $ at the end of any fiscal year. All moneys in the fund are appropriated for the
purposes of and shall be expended by the development corporation for the
operation, maintenance, and management of its industrial parks, projects,
facilities, services, and publications, and to pay the expenses in
administering the special purpose revenue bonds of the development corporation
or in carrying out its project agreements."
SECTION 21.
Any unencumbered balances remaining in the technology special fund as of
July 1, 2019, shall lapse to the credit of the general fund.
SECTION 22.
There is established in the Hawaii innovation technology and research
corporation 1.50 full-time equivalent (1.50 FTE) permanent positions and 6.25
full-time equivalent (6.25 FTE) temporary positions.
SECTION 23.
There is appropriated out of the general revenues of the State of Hawaii
the sum of $ or so
much thereof as may be necessary for fiscal year 2019-2020 for personal
services to convert 1.50 full-time equivalent permanent positions and 6.25 full-time
equivalent temporary positions in the Hawaii technology development corporation
(BED143/TE) to the Hawaii innovation technology and research corporation and to
convert the means of financing from special funds to general funds.
The sum
appropriated shall be expended by the Hawaii innovation technology and
research corporation for the purposes of this Act.
SECTION 24. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the staffing of strategic development and technology investment programs, including the establishment of two full-time equivalent (2.00 FTE) positions that are exempt from chapter 76, Hawaii Revised Statutes.
The sums appropriated shall be expended by the Hawaii innovation technology and research corporation for the purposes of this Act.
PART VI
SECTION 25. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
HAWAII BROADBAND OFFICE
§ -1 Definitions. As used in this chapter:
"Broadband" means high-speed internet access that is always on, including mobile and fixed technologies.
"Corporation" means the Hawaii innovation technology and research corporation.
"Office" means the Hawaii broadband office.
§ -2 Hawaii broadband office; establishment; state broadband strategy officer; staff. (a) There is established the Hawaii broadband office within the Hawaii innovation technology and research corporation.
(b) The chief executive officer of the Hawaii innovation technology and research corporation shall appoint, exempt from chapter 76, a state broadband strategy officer to head the office. The corporation shall employ any staff as may be necessary for the purposes of this chapter; provided that any staff employed pursuant to this section shall be exempt from chapter 76.
§ -3 Hawaii broadband office; duties. In furtherance of the State's objectives and policies for the economy pursuant to section 226-10.5, the office shall:
(1) Develop and implement specific strategies and plans to aggressively increase broadband affordability, penetration, and competitive availability in the State;
(2) Support the efforts of both public and private entities in Hawaii to enhance or facilitate the deployment of and access to competitively priced, advanced electronic communications services, including broadband and its products and services and internet access services of general application throughout Hawaii;
(3) Promote the landing of trans-Pacific submarine cable, including the development of a shared access cable station and associated terrestrial connectivity to reduce barriers to fiber landing in Hawaii;
(4) Promote, advocate, and facilitate the implementation of the findings and recommendations of the Hawaii broadband task force established by Act 2, First Special Session Laws of Hawaii 2007; and
(5) Actively seek out funding from private and public sources in furtherance of the office's duties pursuant to this chapter.
§ -4 Broadband planning and coordination; cooperation. (a) The office shall:
(1) Seek input and the widest possible cooperation from public and private agencies and individuals to achieve the purposes of this chapter;
(2) Promote coordinated broadband planning; and
(3) To the extent feasible, incorporate the ideas and suggestions of broadband stakeholders in the office's planning directives.
(b) Nothing in this chapter shall be construed to delegate or detract in any way from the functions, powers, and duties conferred by law or rule on any department or agency of the State or county."
SECTION 26. Act 199, Session Laws of Hawaii 2010, as amended by section 5, Act 151, Session Laws of Hawaii 2011, as amended by section 2, Act 23, Session Laws of Hawaii 2016, is amended by amending section 3 to read as follows:
"SECTION 3. [Telework promotion; broadband assistance] Broadband advisory council;
establishment; purpose. (a) The [director of commerce and consumer
affairs] chief executive officer of the Hawaii innovation technology and
research corporation, or the
officer's designee, shall convene and chair the broadband [assistance]
advisory council to advise the [director of commerce and consumer affairs]
chief executive officer of the Hawaii innovation technology and
research corporation on policy [and funding priorities] to
promote [and encourage use of telework alternatives for public and private
employees,] and expedite deployment of affordable and accessible broadband
services in Hawaii.
(b)
The council shall be composed of [the director of commerce and
consumer affairs, or the director's designee; the director of business,
economic development, and tourism, or the director's designee;] the chief executive officer of the Hawaii innovation technology and
research corporation, or the
officer's designee, and the following twelve members who shall be
equally appointed by the president of the senate and by the speaker of the
house of representatives as follows:
(1) [Two members]
One member of the senate, appointed by the president of the senate;
(2) [Two members]
One member of the house of representatives, appointed by the speaker of
the house of representatives;
(3) [Four] Six
representatives of federal, state, and county government entities having a role
in infrastructure deployment[; management of public rights-of-way,
regulation, and franchising;], information technology[;],
and economic development; and
(4) Four representatives of Hawaii's private sector technology, telecommunications, and investment industries.
In making the appointments pursuant to subsection
(b)(1) through (b)(3), the president of the senate and the speaker of the house
of representatives shall ensure representation of each of the counties of
Hawaii, Maui, and Kauai, and the city and county of Honolulu by one or more
appointed members. Except for the [director
of commerce and consumer affairs and the director of business, economic
development, and tourism,] chief
executive officer of the Hawaii
innovation technology and research corporation, all members shall serve for a term of four
years. Notwithstanding any law to the
contrary, the terms of all members as of July 1, 2016, shall expire on June 30,
2019; and, each subsequent four-year term shall commence on July 1, and expire
on June 30 every four years thereafter.
Any member of the council whose term has expired may continue to serve
as a holdover member until reappointment or until a successor is
appointed. Any vacancies occurring in
the membership of the advisory council shall be filled for the remainder of the
unexpired term in the same manner as the original appointments.
(c)
The [director of commerce and consumer affairs] chief executive officer of the Hawaii innovation technology and
research corporation, or the
officer's designee, shall serve as chairperson of the council. The chairperson may designate representatives
of other interested public or private sector organizations to serve as members
of the council, or as members of the work groups of the council to address
specified issues on an ad hoc basis, as the chairperson deems necessary. The council shall meet at times as may be
called by the chairperson. Members and
ad hoc members shall be reimbursed for reasonable expenses, including travel
expenses, necessary for the performance of their duties. Administrative support to the council shall
be provided by the [department of commerce and consumer affairs.] Hawaii innovation technology and
research corporation.
(d) The council shall:
(1) Monitor the
broadband-based development efforts of other states and nations in areas such
as business[, education, and health;] and economic development;
(2) Advise the [department]
Hawaii innovation technology and research corporation on other states'
best practices [involving telework promotion and policies] and
strategies related to making affordable broadband services available to every
Hawaii [home and] business;
(3) Monitor broadband-related activities at the federal level;
(4) Monitor [regulatory
and] policy changes for potential impact on broadband deployment and
sustainability in Hawaii; [and]
(5) Encourage
public-private partnerships and collaborations to increase the
deployment and adoption of broadband services and applications[.];
and
(6) Advise the chief executive officer of the Hawaii innovation technology and research corporation on broadband deployment."
SECTION 27. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the creation and staffing of the Hawaii broadband office, including the establishment of two full-time equivalent (2.00 FTE) positions that are exempt from chapter 76, Hawaii Revised Statutes.
The sums appropriated shall be expended by the Hawaii innovation technology and research corporation for the purposes of this Act.
PART VII.
SECTION 28. The purpose of this part is to appropriate funds for the fiscal biennium beginning July 1, 2019, and ending June 30, 2021, for certain programs within the department of business, economic development, and tourism.
SECTION 29. DEFINITIONS. Unless otherwise clear from the context, as used in this part:
"Expending agency" means an agency within the department of business, economic development, and tourism.
Abbreviations, where used to denote the expending agency, shall mean the following:
BED Department of business, economic development, and tourism
"Means of financing" or "MOF" means the source from which funds are appropriated or authorized to be expended for the programs and projects specified in this part. All appropriations are followed by letter symbols. The letter symbols, where used, shall have the following meanings:
A General
funds
B Special
funds
P Other
federal funds
W Revolving
funds
"Position ceiling" means the maximum number of permanent and temporary full-time equivalent positions authorized for a particular program during a specified period or periods, as denoted by an asterisk for permanent full-time equivalent positions and a pound sign for temporary full-time equivalent positions.
"Program ID" means the unique identifier for the specific program and consists of the abbreviation for the organization responsible for carrying out the program followed by the organization number for the program.
SECTION 30. APPROPRIATIONS. The following sums, or so much thereof as may be sufficient to accomplish the purposes and programs designated herein, are hereby appropriated or authorized, as the case may be, from the means of financing specified to the expending agencies designated for the fiscal biennium beginning July 1, 2019, and ending June 30, 2021. The total expenditures and the number of positions in each fiscal year of the biennium shall not exceed the sums and the position ceilings indicated for each fiscal year, except as provided elsewhere in this part or as provided by general law.
3.00* 3.00*
12.00# 12.00#
OPERATING BED 2,580,026A 2,580,026A
BED 2,644,146B 2,644,146B
BED 1,500,000W 1,500,000W
9.00# 9.00#
BED 964,713P 964,713P
SECTION 31. Provided that any funds appropriated to a program pursuant to this part shall be included in the base budget of that program, as established in the General Appropriations Act of 2019 (House Bill No. 2, H.D. 1, S.D. 1, C.D. 1).
SECTION 32. Provided that, notwithstanding any provision contained in the General Appropriations Act of 2019 (House Bill No. 2, H.D. 1, S.D. 1, C.D. 1) that appropriates funds and establishes position ceilings, the appropriations and positions authorized in this part shall be in addition to the positions authorized for that program under the General Appropriations Act of 2019; provided further that any incumbent employee shall retain the employee's:
(1) Civil service status, whether permanent or temporary; and
(2) Salary, seniority (except as may be prescribed by an applicable collective bargaining agreement), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws.
SECTION 33. Provided that, notwithstanding any law to the contrary, the position ceilings and funds appropriated in this part may be transferred with the approval of the governor to the General Appropriations Act of 2019 (House Bill No. 2, H.D. 1, S.D. 1, C.D. 1), for program execution and expenditure.
SECTION 34. If any portion of a specific appropriation made by this part is held to be invalid for any reason, the remaining portion shall be expended to fulfill the objective of the appropriation to the extent possible.
SECTION 35.
If manifest clerical, typographical, or other mechanical errors are
found in this part, the
governor may correct the errors.
PART VIII
SECTION 36. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 37. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 38. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 39. This Act shall take effect on July 1, 2021; provided that parts V, VI, VII, and VIII shall take effect on July 1, 2019.
Report Title:
DBEDT;
Technology‑based Economic Development Strategy; Appropriation
Description:
Part I: Purpose section. Part II: Establishes the Hawaii innovation technology and research corporation (HITRC) and consolidates powers, duties, and programs of Hawaii Technology Development Corporation (HTDC) and Hawaii Strategic Development Corporation (HSDC) under HITRC. Part III: Makes conforming amendments. Part IV: Repeals HSDC and transfers all duties, employees, rules, records, and equipment from HTDC and HSDC to HITRC. Part V: Appropriates funds for staffing for HITRC. Part VI: Establishes the Hawaii broadband office and appropriates funds. Part VII: Appropriates funds for HITRC. Effective 7/1/2021; parts V, VI, VII, and VIII effective 7/1/2019. (SD2)
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