SB1296 HD2

SECTION 1. The legislature finds that being a United States Economic Development Administration-designated economic development district provides an opportunity to work comprehensively to achieve locally developed goals that leverage and build upon interrelated community assets, such as workforce, infrastructure, and housing. An economic development district develops a long-term established relationship with the United States Department of Commerce, Economic Development Administration that includes annual federal funding to support the development and implementation of the Hawaii comprehensive economic development strategy. An investment of federal funds by the United States Economic Development Administration is much more likely, on a per capita basis, to be located in an economic development district area than in an area that is not covered by an economic development district.

The legislature further finds that regional eligibility to be designated as an economic development district by the United States Economic Development Administration requires the region to have a United States Economic Development Administration‑approved comprehensive economic development strategy that contains a specific program for intra-district cooperation, self-help, and public investment; is approved by the affected state and the United States Economic Development Administration Assistant Secretary; obtains commitments from a majority of counties within the proposed district; and forms a district organization that meets the economic development district requirements. A district organization may be organized as a public organization established under state-enabling legislation for the creation of a multi-jurisdictional area-wide planning organization.

To ensure that Hawaii is eligible for the substantial benefits of a United States Economic Development Administration‑designated economic development district, the purpose of this Act is to:

(1) Establish the Hawaii economic development district planning organization and governing board that meet the requirements of the United States Economic Development Administration, as provided in title 13 Code of Federal Regulations section 304.2, by being broadly representative of the principal economic interests of the region, including the private sector, public officials, community leaders, representatives of workforce development boards, institutions of higher learning, minority and labor groups, and private citizens; and

(2) Designate the office of planning and sustainable development to organize the district organization with assistance from professional staff with economic development planning qualifications.

SECTION 2. Chapter 226, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"§226- Hawaii economic development district planning organization. (a) There is established the Hawaii economic development district planning organization, which shall be the district organization to implement the United States Economic Development Administration-approved comprehensive economic development strategy. The Hawaii economic development district planning organization shall be placed within the department of business, economic development, and tourism and attached to the office of planning and sustainable development for administrative purposes.

(b) The Hawaii economic development district planning organization shall:

(1) Develop, manage, and support effective multi-level partnerships to promote intra-district cooperation, self-help, and public investment to restore and sustain economic resilience and prosperity;

(2) Assist organizations within the economic development district with applications for funding;

(3) Implement the United States Economic Development Administration-approved comprehensive economic development strategy; and

(4) Present to the governor and legislature any annual updates to the comprehensive economic development strategy.

(c) The Hawaii economic development district planning organization shall be headed by a governing board that shall be composed of fifteen members as follows:

(1) The director of the office of planning and sustainable development, or the director's designee, who shall serve as chair;

(2) The mayor of each county, or the respective mayor's designee;

(3) The executive director of each county economic development board, or the respective executive director's designee;

(4) A representative of each county workforce development board, to be designated by the chair of the respective board;

(5) The president of the University of Hawaii, or the president's designee; and

(6) A representative of a labor organization, to be invited by the governor.

(d) The nongovernmental members of the Hawaii economic development district planning organization governing board shall serve for no more than two consecutive terms of four years and without compensation but shall be reimbursed for expenses, including reasonable travel expenses, necessary for the performance of their duties. Members shall not be subject to section 26-34(a).

(e) The Hawaii economic development district planning organization governing board shall hold public meetings, subject to chapter 92, at least twice a year."

SECTION 3. There are established full-time equivalent ( FTE) temporary economic development planning analyst positions to support the Hawaii economic development district planning organization. The positions shall be hired without regard to chapters 76 and 89, Hawaii Revised Statutes, and shall be paid out of the general revenues of the State of Hawaii.

SECTION 4. 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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to carry out the purposes of this Act, including the hiring of necessary staff.

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

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on June 30, 3000.

THE SENATE	S.B. NO.	1296
THIRTY-SECOND LEGISLATURE, 2023		S.D. 2
STATE OF HAWAII		H.D. 2