HB3071

SECTION 1. The legislature finds that the final link in the education pipeline, universally recognized as critical to the success of a knowledge-based economy, is a vibrant postsecondary education system that meets not only the traditional education expectations of its citizens, but becomes a true partner in addressing the needs of the state to have a highly skilled workforce, create knowledge-based products and services, and provide the global orientation and entrepreneurial skills required to succeed in today's world.

The competitiveness of a university is determined by the strength of its faculty. One proven way to enhance that strength is by retaining and recruiting distinguished faculty through the endowment of faculty chairs. For example, the Kentucky legislature has appropriated $423,000,000 since 1997 to the Kentucky research challenge trust fund, which must be matched on a one-to-one basis with private contributions. The University of Kentucky has used its bucks for brains program to create seventy-seven endowed chairs and 190 endowed professorships. External research contracts and grants have increased by over 130 per cent since 1997. There are numerous other examples of the benefits of endowed positions in institutions across the country.

Endowed chairs are supported by the income generated by an endowment fund established with a gift or gifts from private sources. Typically, the donations are made for specific disciplines and are often named after the donor or in honor of a distinguished member of the field. In addition to the prestige accorded the holder of an endowed chair, funding is provided to support his or her teaching, research, and service responsibilities.

To support an endowed chair in a science, technology, engineering, and math field would require between $2,000,000 and $4,000,000.

The legislature further finds that, as the cost of petroleum has sky-rocketed and the debate continues over just when oil production will peak, clean technologies, including renewable power generation, have become much more interesting to venture capital investors, driving the need for more research and a growing workforce that requires specific training in energy-related skills. Increased reliance on renewable energy resources and technologies will require advanced power systems engineering to integrate new technologies into conventional power systems.

The Pearl Harbor naval shipyard has been recruiting new workers since 1999, after ten years of no recruiting, and there are specific needs for training this workforce to remain competitive with other shipyards. The Pearl Harbor naval shipyard has identified five key areas of workforce development needs, and has placed a high priority on the development of a power generation and distribution curriculum at the University of Hawaii.

The University of Hawaii college of engineering is actively considering adding a power program, but is constrained by financial issues. To start a program would require approximately $2,000,000 and two to three new junior faculty positions. Typically, such a program would also require senior faculty to attract significant research funding and mentor junior faculty. The establishment of an endowed chair for power generation and distribution would indicate the State's commitment to developing a program that will fill research and workforce needs to enable Hawaii to move toward energy sustainability and security. The program also would help ensure the quality and competitiveness of the workforce at the Pearl Harbor naval shipyard, an important employer in the State. A robust power program, anchored by an endowed chair, could evolve into a center of excellence which would attract students from around the Pacific.

The legislature finds that there is sufficient justification to assist the University of Hawaii in attracting and retaining highly qualified faculty in science, technology, engineering, and math disciplines. The purpose of this Act is to establish the eminent scholars program and to appropriate funds, to be matched by private donations, to support the power generation and distribution endowed chair in the University of Hawaii college of engineering.

SECTION 2. There is established an eminent scholars program to be funded by a fund known as the state akamai investment matching special fund to enable the University of Hawaii system to provide donors with an incentive in the form of matching grants for donations to establish permanently endowed faculty positions in science, technology, engineering, and math at any university of Hawaii campus. All funds appropriated for the eminent scholars program shall be deposited into the state akamai investment matching special fund and invested by the director of finance until the president of the University of Hawaii expends the funds to match private donations on a dollar- for-dollar basis, provided that the first endowed chair shall be established as the chair for power generation and distribution in the college of engineering. Any undisbursed balance remaining in the special fund and interest income accruing to the portion of the special fund that is not matched and distributed to the university shall remain in the special fund and be used to increase the total funds available for funding endowed chairs.

SECTION 3. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304A- State akamai investment matching special fund. (a) There is established a state akamai investment matching special fund into which shall be deposited appropriations made by the state legislature and matching private donations. The fund shall be used as a funding mechanism for the eminent scholars program to create new endowed faculty positions in science, technology, engineering, and math funded by a combination of state and private funds. The board of regents shall adopt rules as necessary to establish this program. No state appropriations deposited into the fund shall be expended unless matched by private funds on a dollar-for-dollar basis.

(b) To be eligible for state matching funds, a university of Hawaii campus chancellor shall submit a proposal for each proposed endowed chair to the president of the university of Hawaii for presentation to the board of regents for review and consideration. The board of regents of the university of Hawaii shall take into account the following criteria before approving state matching funds to establish a position and recruit candidates:

(1) The ability for the position to contribute to Hawaii's economic development;

(2) The ability for the position to make a significant contribution to the university's academic quality; and

(3) The ability for the position to obtain significant amounts of annual research from highly competitive grant sources.

(c) The review process shall consider the field of the proposed position and its potential funding sources, relationship to existing research at the university of Hawaii and in the state of Hawaii, size and scope of related industries, and other relevant factors.

(d) The university of Hawaii shall prepare and submit an annual report on the status of the state akamai investment matching special fund to the legislature twenty days before the convening of each regular session."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000,or so much thereof as my be necessary, for fiscal year 2008-2009 for deposit into the state akamai investment special fund created by section 304A- , Hawaii Revised Statutes, to carry out the purposes of this Act. The sum appropriated shall be expended by the University of Hawaii.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2008.

INTRODUCED BY:

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BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	3071
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII