Establishes the high technology industry task force for the state.

A BILL FOR AN ACT

SECTION 1. In 1983, the legislature created the high technology development corporation as a means to facilitate growth in the high technology industry. Since then, various measures promoting the continuation of the high technology industry have been enacted.

In 1990, the legislature established the Hawaii strategic development corporation to encourage development and diversification by stimulating the investment of private capital in the state. Act 221, Session Laws of Hawaii (SLH) 2001, supported the establishment of high technology companies in Hawaii by expanding the application of the high technology business investment tax credit. Further, Act 215, SLH 2004, complemented Act 221, by creating the state private investment fund and providing investors with tax credit guarantees in the event that the start-up company did not reach profitability thereby encouraging the investment of risk capital in the early stages of a company's growth.

Positive growth in high technology companies and continued growth in the state's economy indicate that efforts to stimulate the high technology industry by providing venture capital have been worthwhile. Hawaii has experienced an influx of high technology companies over the past five years and many of these companies are beginning to enter the profitability stage of their growth. A rising demand for increased incentives and further support from the State mandates the establishment of concrete plans and a unified vision for the future of Hawaii's high technology sector.

The legislature finds that a task force focusing on defining the direction of Hawaii's high technology industry is the necessary next step in the process of continued growth. The purpose of this Act is to establish the high technology industry task force for the State. The primary responsibility of the task force will be to develop a state master plan for technology.

SECTION 2. (a) The high technology industry task force is established within the department of business, economic development, and tourism, which shall provide all necessary administrative and staff support for the task force.

(b) The task force shall consist of fifteen members who shall not be subject to senate confirmation. The chair of the task force shall be elected by a majority of its members. The task force shall be comprised of the following members:

(c) Members of the task force shall serve without pay, but may be reimbursed for necessary expenses, including travel expenses incurred in the performance of official duties if funds are available.

(d) The task force shall meet at least monthly or more frequently at the discretion of the chair.

(e) The task force shall create a master plan for technology by December 2006 and shall reconvene on or before July 1, 2010, and every four years thereafter to re-assess the master plan and submit further recommendations.

(f) The primary tasks of the task force shall include:

(g) The task force shall submit a report to the legislature and the governor no later than twenty days prior to the convening of regular session of 2007.

SECTION 3. This Act shall take effect upon its approval.