HB2709 HD1

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 high technology development corporation, Hawaii strategic development corporation, and the Hawaii technology development venture, but more is 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 establish the Hawaii innovation and technology 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—ups, sustain existing companies, and attract companies to relocate or establish offices in Hawaii.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII INNOVATION AND TECHNOLOGY RESEARCH CORPORATION

§ -1 Hawaii innovation and technology research corporation; establishment; purpose. (a) There is established, as a body corporate, the Hawaii innovation and technology research corporation. The Hawaii innovation and technology research corporation shall be a public instrumentality of the State and shall be a part of the department of business, economic development, and tourism for administrative purposes only pursuant to section 26-35.

(b) The purpose of the Hawaii innovation and technology research corporation shall include the promotion, development, and expansion of Hawaii's innovation and technology industry by:

(1) Encouraging, initiating, and aiding in the development and commercialization of local innovation and technology;

(2) Furnishing of means and methods to institute and grow local innovation and technology;

(3) Developing policy and resource allocations to enable and support start-ups, sustain existing companies, and attract companies to relocate or establish offices in Hawaii;

(4) Attracting resources from public and private sector organizations and agencies to grow and develop a local qualified innovation research and technology workforce;

(5) Coordinating with other state agencies and entities to support the innovation and technology industry; and

(6) Taking any and all other actions reasonably designed to promote these purposes in the interest of promoting the general welfare of the people of the State.

§ -2 Hawaii innovation and technology research corporation; board; president and chief executive officer. (a) The Hawaii innovation and technology research corporation shall be headed by a policy—making board of directors appointed as follows:

(1) The members shall be appointed by the governor, senate president, and speaker of the house of representatives for a term of four years; provided that membership on the board shall not exceed eight consecutive years; provided further that each member shall hold office until the member's successor is appointed and qualified;

(2) The members shall include at least one representative each from the city and county of Honolulu, county of Hawaii, county of Kauai, and county of Maui;

(3) Three members shall be appointed by the governor from a list of three names submitted for each appointment by the president of the senate, and three members shall be appointed by the governor from a list of three names submitted for each appointment by the speaker of the house of representatives;

(4) All members shall have knowledge, experience, and expertise in the area of technology, innovation, information systems, computer science, aerospace, agriculture, tourism, environmental science, and/or sustainability; and

(5) The governor shall make appointments to ensure the fulfillment of all requirements of this subsection; provided that upon the occurrence of a vacancy, the governor shall notify the president of the senate and the speaker of the house of representatives of any unfulfilled requirements pursuant to this subsection, and the president of the senate or the speaker of the house of representatives, as appropriate, shall submit nominees who fulfill those requirements.

(b) The board shall elect a chairperson from among the members.

(c) shall constitute a quorum and a minimum of affirmative votes shall be necessary for all actions by the Hawaii innovation and technology research corporation. The members shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties, by the department of business, economic development, and tourism.

(d) The board shall appoint one person to serve as president and chief executive officer, who shall oversee the Hawaii innovation and technology research corporation staff; provided that the compensation package, including salary, shall not exceed fifteen per cent of the three and one-half percent authorized for administrative expenses under ; and provided further that the compensation package shall not include private sector moneys or other contributions. The board shall set the salary, duties, and responsibilities of the president and chief executive officer. It may grant other benefits as it deems necessary.

§ -3 Hawaii innovation and technology research corporation; powers. The Hawaii innovation and technology research corporation, under the direction of the board of directors, shall have the following general powers:

(1) To adopt, amend, and repeal bylaws governing the conduct of its business and the exercise of the powers and performance of duties granted to or imposed upon it by law;

(2) To sell, lease, rent, hold, maintain, use, and operate any property, real, personal, or mixed, tangible or intangible, in accordance with the conditions under which it was received;

(3) To enter into and perform such contracts, leases, cooperative agreements, or other transactions with any other agency or political subdivision of the State, any private person, firm, partnership, association, company, or corporation, only as it may be necessary in the conduct of its business and on such terms as it may deem appropriate; provided that the research corporation shall not obligate any funds of the State except those that have been appropriated to it. Notwithstanding the foregoing, the research corporation may enter into and perform such contracts, leases, cooperative agreements, or other transactions with any agency or instrumentality of the United States, a foreign nation, a state, a territory, or a possession, or with any political subdivision thereof, whenever the donating or granting agency or instrumentality determines that the agency of the State cannot as effectively and efficiently accomplish the purposes for which such contracts, leases, cooperative agreements, or other transactions are being entered into; provided that the research corporation shall not obligate any funds of the State except those that have been appropriated to it;

(4) To receive by gifts, grants, devises, bequests, or otherwise from private sources only, any property, real, personal, or mixed, intangible or tangible, absolutely or in trust, to be used and disposed of, either the principal or the income therefrom, in accordance with the conditions under which it was received; except that no gift to the research corporation shall be accepted unless approved or confirmed by the board of directors. Notwithstanding the foregoing, the research corporation may receive gifts, grants, or awards from any agency or instrumentality of the United States, a foreign nation, a state, a territory, or a possession, or from any political subdivision thereof, whenever the donating or granting agency or instrumentality determines that any agency of the State cannot as effectively and efficiently accomplish the purposes for which the gifts, grants, or awards are being made, except that no gift to the research corporation shall be accepted unless approved or confirmed by the board of directors;

(5) To serve as trustee or beneficiary under terms of any gift, indenture, or will;

(6) To coordinate and correlate activities and projects of the research corporation with the work of other state agencies for the purpose of economic development of the State whenever practical or desirable; and

(7) To do any or all other acts reasonably necessary to carry out the objectives and purposes of the research corporation."

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 for fiscal year 2018-2019 for the operations of the Hawaii innovation and technology research corporation.

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

SECTION 4. This Act shall take effect on July 1, 2112.

HOUSE OF REPRESENTATIVES	H.B. NO.	2709
TWENTY-NINTH LEGISLATURE, 2018		H.D. 1
STATE OF HAWAII