HB1997 HD1.DOC

Section 1. As the State continues to recover from the recent economic crisis, it is imperative that every opportunity for sustainable economic growth and development be seized and capitalized upon. By emphasizing its strengths, the State will be able to ensure that its long-range goals of economic stability will be realized, which will be to the benefit of all Hawaii residents.

The International Trade Administration in the United States Department of Commerce has focused on increasing exports as a means to spur job creation and aid the country's economic recovery. To this end, promoting higher education as an export service has been a recent part of the International Trade Administration's export strategy.

Higher education is one of the United States' top service exports and the United States is currently the largest destination for international students seeking higher education. Tuition and living expenses paid by international students attending universities in the United States has added nearly $20,000,000,000 to the United States economy during the 2009-2010 academic year alone.

Situated at the heart of the Pacific, Hawaii is uniquely positioned to begin promoting higher education as an export service and employ this export service as part of an overall economic development strategy for the State. Hawaii has historically maintained social and cultural ties with many Pacific rim countries and as a cosmopolitan center, is rife with resources to make students from many different cultural backgrounds feel secure in their decision to study so far from home.

The State stands to profit from more than the clearly evident economic benefits. As the Under Secretary for the International Trade Administration stated, "[e]xpanding educational opportunities for students in emerging economies…is critical to developing a middle class in those markets. The new middle-class consumers emerge with increased resources to participate in both local and global markets." The State's business and academic communities will directly benefit as Hawaii residents build ties and strengthen connections with international students who will return to their home countries with lasting economic and social relationships. Ultimately, promoting higher education as an export service will indirectly implement a program of cultural diplomacy, familiarizing future leaders and professionals with the attitudes and perspectives that are valued in Hawaii, which will serve to strengthen the State's position in a global marketplace.

These benefits will only be realized, however, if the State makes a concerted and coordinated effort to pursue this economic strategy. The purpose of this Act, therefore, is to establish the higher education export commission, to develop a unified strategic vision and implement a targeted effort toward establishing higher education as factor for sustainable economic growth.

SECTION 2. Chapter 201, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§201- Higher education export commission; establishment. (a) There is established the higher education export commission within the department of business, economic development, and tourism for administrative purposes. The commission shall consist of nine members to be appointed by the governor and shall serve pursuant to section 26-34; provided that members of the commission shall not be subject to the advice and consent of the senate. Of the nine members appointed by the governor:

(1) Two shall have experience with public institutions of higher education in the State;

(2) Two shall have experience with private institutions of higher education in the State;

(3) One shall represent the department of business, economic development, and tourism;

(4) One shall have experience in the private sector in international marketing; and

(5) One shall have experience in the private sector employing economic development strategies.

(b) The commission shall select a chair from among its members.

(c) Members of the commission shall serve without pay but shall be reimbursed for their actual and necessary expenses, including travel expenses, incurred in carrying out their duties.

(d) The commission may employ or contract with, without regard to chapters 76, 78, and 89, persons it finds necessary for the performance of its functions, including a full-time executive director, and to fix their compensation; provided that the commission shall have the authority, at its discretion, to dismiss any person employed by or contracted with the commission.

§201- Duties of the higher education export commission. (a) The higher education export commission shall:

(1) Develop a unified strategic vision for the promotion of higher education as an export service to support sustainable economic development within the State; provided that the commission shall consider any existing strategies or implementation plans that address this issue;

(2) Engage in multiparty discussions and collaborations with key educational organizations, institutions, and the private sector in the development and ongoing support of the unified strategic vision and the development of an adequate infrastructure to support the unified strategic vision;

(3) Coordinate with federal agencies to promote higher education as an export service within the State, including the United States Department of State and the International Trade Administration within the United States Department of Commerce;

(4) Establish and implement marketing strategies targeted toward attracting and recruiting international students to Hawaii-based institutions of higher education;

(5) Develop and support networks in foreign countries to promote Hawaii-based institutions of higher education;

(6) Assist and support those Hawaii-based institutions of higher education that independently engage in international marketing efforts; and

(7) Collaborate with Hawaii-based institutions of higher education to increase their capacity to successfully accept and assist international students.

(b) The commission shall work to maintain the reputation and integrity of higher education within the State. The commission shall promote and assist only those institutions that are accredited by an accrediting agency recognized by the Secretary of Education."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	1997
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 1
STATE OF HAWAII