Appropriates money for the New Economy Transition (NET) program; appropriates moneys to DBEDT; creates a high technology task force to develop goals and an implementation plan to improve Hawaii's high technology industry. (SB678 HD2)

A BILL FOR AN ACT

PART I

SECTION 1. The legislature finds that the use of technology, particularly the internet, is becoming businesses' best marketing tool and their greatest source of competition. The greatest risk for Hawaii businesses that do not participate in a technology-based economy is that they will be left behind.

While some businesses participate in the new economy and make use of system modernization and skills training, most businesses lack sufficient time and resources to learn about the information-technology revolution. As a result, these businesses are prevented from using technology to increase productivity, to work faster and more efficiently, to create a more flexible, less hierarchical style of doing business, and from being as competitive as they could be.

The legislature finds that the new economy transition (NET) program, a concept patterned after the agricultural extension programs, is available to help Hawaii businesses transition to the new economy and foster collaborative partnerships. The NET program serves as a conduit for technology education and advisory services, using many of the excellent resources offered by the State, the private sector, and other organizations. The result is a valuable partnership between business and government.

The greatest asset of the NET program is the outreach component, whereby a program technician, instead of a business, initiates the dialogue to identify the unique obstacles of the business and to determine the process to overcome those obstacles. Solutions include educational seminars on the benefits of applying technology to existing business processes, advisory services to develop planning and the implementation of technology business plans, a menu of training courses offered by qualified providers, interactive tools or a technology showcase, or simply distributing information materials.

Businesses benefit from the NET program because of a greater access to technology programs and sources of funding, increased productivity and efficiency, and the ability to compete both locally and globally. Government benefits from the NET program because of increased participation in the new economy, greater employment opportunities, higher tax revenue, increased global competitiveness, and a more highly skilled work force.

The purpose of this part is to help Hawaii businesses transition to a technology-based economy by appropriating funds for the NET program that promotes the partnering of business and government.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year 2001-2002 and the sum of $1 or so much thereof as may be necessary for fiscal year 2002-2003 for the NET program.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this part.

PART II

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2001-2002 for the purpose of extending the community-based economic development loan and grant program to information technology for distressed rural areas.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this part.

PART III

SECTION 4. The legislature finds that Hawaii's high technology industry is growing. Hawaii-based companies are venturing and succeeding in several areas of high technology including telecommunications, electronic commerce, networking infrastructure and hardware, software development, and biotechnology. The reach of high technology reaches beyond its industry, improving the efficiency and effectiveness of other industries in Hawaii.

Although there is progress in Hawaii's high technology industry, the legislature finds that focus and cohesiveness of the State's efforts to promote Hawaii's high technology industry is required to ensure long-lasting success.

The purpose of this part is to bring together industry, government, and educational leaders to develop clear goals and an implementation plan to further develop Hawaii's high technology industry.

SECTION 5. (a) There is created a joint legislative high technology task force. The task force shall:

(b) By July 1, 2001, members of the task force shall be chosen by the respective chairs of the senate committee on economic development and technology and the house committee on economic development and business concerns. The task force shall consist of at least one representative from each of the following groups: office of planning, office of the governor, director of the department of business, economic development, and tourism, high technology trade organizations, business organizations, high technology legal professionals, high technology educational institutions, University of Hawaii, department of business and economic development, department of commerce and consumer affairs, and Hawaii, Honolulu, Kauai, and Maui counties.

(c) The high technology task force shall submit a report of findings and recommendations, including recommended legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2002.

PART IV

SECTION 6. Section 206M-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The governing body of the development corporation shall consist of a board of directors having [eleven] thirteen voting members. Seven of the members shall be appointed by the governor for staggered terms pursuant to section 26-34. [Six] Seven 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 high technology fields. The other appointed member shall be selected from the faculty of the University of Hawaii. 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, and the special advisor for technology development, 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 211F-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The governing body of the corporation shall be a board of directors consisting of [eleven] thirteen members. [Eight] Nine of the members shall be from the general public and appointed by the governor for staggered terms pursuant to section 26-34, and shall be selected on the basis of their knowledge, skill, and experience in the scientific, business, or financial fields. The director of business, economic development, and tourism, an appointed member from the board of the high technology development corporation, [and] an appointed member from the board of the natural energy laboratory of Hawaii authority, and the special advisor for technology development, or their designated representatives, shall serve as ex officio voting members. Not more than two of the eight appointed members of the board, during their term of office on the board, shall be employees of the State. Of the members appointed by the governor, one member shall be appointed from a list of nominees provided by the speaker of the house of representatives and one member shall be appointed from a list of nominees provided by the president of the senate. All appointed members of the board shall continue in office until their respective successors have been appointed."

SECTION 8. 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 [eleven] thirteen voting members. [Three] Four 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 high technology development corporation, [and] an appointed member from the board of the Hawaii strategic development corporation, and the special advisor for technology development, 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 other officers as it deems necessary."

PART V

SECTION 9. The purpose of this part is to establish a chief information officer and information technology policy function within the office of the governor. The chief information officer shall:

However, the chief information officer shall not be involved with the operations of the State's data management systems, which will remain under the direction of the departments and attached agencies of the State.

SECTION 10. The Hawaii Revised Statutes is amended by adding three new sections to be appropriately designated and to read as follows:

"§ - Chief information officer; staff. There is established a chief information officer, within the office of the governor, to be appointed by the governor without regard to chapter 76. The chief information officer shall be a member of the employees' retirement system and shall be eligible to receive the benefits of any state or federal benefit program generally applicable to officers and employees of the State. The governor may, without regard to chapter 76 and at pleasure, employ or dismiss staff as may be necessary for the performance of information technology policy functions.

§ - Duties. (a) The duties of the chief information officer shall include:

(b) In carrying out the duties of this section, the chief information officer may use the services of the information and communication services division in the department of accounting and general services.

§ - Annual report. The chief information officer shall submit an annual report to the legislature no fewer than twenty days before the start of each regular session on such issues as the chief information officer finds significant in implementing a statewide strategic plan for information technology."

SECTION 11. There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year 2001-2002 and $1 or so much thereof as may be necessary for the fiscal year 2002-2003 for the information technology policy function.

The sums appropriated shall be expended by the office of the governor for the purposes of this Act.

PART VI

SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 13. This Act shall take effect upon its approval; provided that sections 2, 3, and 11 shall take effect on July 1, 2001, and section 10 shall be repealed on June 30, 2005.