Bill Text: HI HB2282 | 2014 | Regular Session | Amended

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Bill Title: High Technology Development Corporation; Small Business Innovation Research Grants; Hawaii Capital Loan Revolving Fund; Hawaii Technology Development Corporation

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Enrolled - Dead) 2014-04-24 - Conference committee meeting to reconvene on 04-25-14 3:00PM in conference room 423. [HB2282 Detail]

Download: Hawaii-2014-HB2282-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2282
TWENTY-SEVENTH LEGISLATURE, 2014		H.D. 1
STATE OF HAWAII		S.D. 2

A BILL FOR AN ACT

 

 

RELATING TO HIGH TECHNOLOGY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  Section 206M-15, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  The development corporation may provide grants to any business in Hawaii that:

     (1)  Receives a federal small business innovation research [phase I] award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract;

     (2)  Receives a federal small business technology transfer program award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract; or

     (3)  Applies for a small business innovation research federal grant or a small business technology transfer program federal grant, in an amount not to exceed $3,000,

subject to the availability of funds."

     2.  By amending subsection (d) to read:

     "(d)  If funds appropriated for the purpose of making grants under this section are inadequate to satisfy all qualified requests, the development corporation shall apply for funds to be transferred from the Hawaii capital loan revolving fund to provide the grants in accordance with subsection (b).  The amount of any single transfer of funds shall not exceed [$100,000,] $          , and the development corporation shall transfer the entire amount back to the Hawaii capital loan revolving fund within twelve months of receiving the funds.  No more than one fund transfer shall be outstanding at any one time.  The director of business, economic development, and tourism may transfer funds from the Hawaii capital loan revolving fund to the development corporation upon request to carry out the purposes of this section.  Transfers of funds shall be made without any charges or fees."

PART II

     SECTION 2.  The purpose of this part is to:

     (1)  Reestablish the high technology innovation corporation; and

     (2)  Change the name of the high technology development corporation to the "Hawaii technology development corporation".

     SECTION 3.  Chapter 206M, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  High technology innovation corporation

     §206M-A  Definitions.  As used in this part, unless the context otherwise requires:

     "Board" means the board of directors of the innovation corporation established pursuant to section 206M-C.

     "Development corporation" means the Hawaii technology development corporation established pursuant to section 206M-2.

     "Innovation corporation" means the high technology innovation corporation established pursuant to section 206M-B.

     §206M-B  Establishment of the high technology innovation corporation; purpose.  (a)  There is established, as a body corporate, the high technology innovation corporation.  The innovation corporation shall be a public, not-for-profit organization under section 501(c)(3) of the Internal Revenue Code.  The innovation corporation shall be attached to the department of business, economic development, and tourism for administrative purposes.

     (b)  The purpose of the innovation corporation shall include the facilitation of the growth and development of the commercial high technology industry in Hawaii.  Its duties shall include:

     (1)  Managing the assets and resources of the development corporation, including its technology parks and incubation facilities;

     (2)  Planning, creating, and implementing any programs and projects of the development corporation that shall be assigned to the innovation corporation, including federally- and state-funded programs and projects and those programs funded by other nonprofit and for-profit organizations;

     (3)  Identifying and obtaining funding and other resources in support of the purposes of the innovation corporation and the development corporation from agencies and organizations not able to provide resources directly to the development corporation;

     (4)  Assisting the development corporation in the promotion and marketing of Hawaii as a location for commercial high technology activity; and

     (5)  Assisting the development corporation in any other strategic or operational manner that supports the State's technology-based economic development activities.

     (c)  The innovation corporation shall implement this purpose by:

     (1)  Furnishing the means, methods, and agencies by which the management, programming, training, investigation, research, and analysis may be conducted;

     (2)  Other means to make the benefits of programming, training, investigation, research, and analysis available to the public; and

     (3)  Any and all other acts reasonably designed to promote the foregoing purposes in the interest of promoting the general welfare of the people of the State.

The innovation corporation shall have the sole right to provide the foregoing services and support to the development corporation, and the development corporation shall use the innovation corporation to provide these services and support in every case, except when the development corporation determines that the innovation corporation may not or cannot legally or operationally provide these services and support.

     §206M-C  Board of directors; composition.  (a)  The affairs of the innovation corporation shall be under the general management and control of a board of directors consisting of nine voting members.  The members of the board shall be as follows:

     (1)  The executive director and chief executive officer of the development corporation or the executive director and chief executive officer's designee;

     (2)  The division head of the creative industries division of the department of business, economic development, and tourism or the division head's designee;

     (3)  The president of the Hawaii strategic development corporation or the president's designee;

     (4)  The executive director of the natural energy laboratory of Hawaii authority or the executive director's designee;

     (5)  The executive director of the agribusiness development corporation or the executive director's designee;

     (6)  The executive director of the Hawaii housing finance development corporation or the executive director's designee;

     (7)  The energy administrator of the Hawaii state energy office or the energy administrator's designee;

     (8)  One private business sector member to be appointed by the speaker of the house of representatives; and

     (9)  One private business sector member to be appointed by the president of the senate.

     (b)  All members of the board shall serve without pay but shall be entitled to reimbursement for necessary expenses, including travel expenses, while attending meetings and while in the discharge of duties and responsibilities.

     (c)  The executive director and chief executive officer of the Hawaii technology development corporation shall serve as the chairperson of the board.

     §206M-D  Powers of the board.  The innovation corporation, under the direction of its board, 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 contracts, leases, cooperative agreements, or other transactions with the development corporation or 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 terms as it may deem appropriate; provided that the innovation corporation shall not obligate any funds of the State except funds that have been appropriated to it by the legislature or transferred or contracted to it by the development corporation or other agency or department of the state government.  Notwithstanding the foregoing, the innovation corporation may enter into and perform 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 development corporation or any other agency of the State cannot as effectively and efficiently accomplish the purposes for which the contracts, leases, cooperative agreements, or other transactions are being entered into; provided that the innovation corporation shall not obligate any funds of the State except funds that have been appropriated or transferred to it or contracted for 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; provided that no gift to the innovation corporation shall be accepted unless approved or confirmed by its board.  Notwithstanding the foregoing, the innovation 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 the development corporation or any other agency of the State cannot as effectively and efficiently accomplish the purposes for which the gifts, grants, or awards are being made; provided that no gift to the innovation corporation shall be accepted unless approved or confirmed by its board;

     (5)  To have a corporate seal;

     (6)  To sue and be sued in its own name;

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

     (8)  To apply for, take out, receive by purchase or gift, hold, administer, and dispose of copyrights, patent rights, licenses, assignments of inventions, discoveries, processes, and other property, rights or interests therein, and the income thereof, absolutely or subject to conditions or trusts as may be attached thereto or be imposed thereon, and to obligate itself to perform and execute any and all conditions or trusts;

     (9)  To conduct programs, projects, research, studies, experiments, investigations, and tests in all fields of knowledge; to promote and develop the scientific and commercial value of inventions, discoveries, and processes; and to make, publish, and distribute the results thereof;

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

    (11)  To stimulate and promote cooperative research projects and activities;

    (12)  To establish and maintain, or to assist in establishing and maintaining staff positions for the purpose of aiding in technology-based economic development, and to enter into agreements or contracts with other corporations, organizations, institutions, or persons for this purpose and to pay the necessary and appropriate expenses therefor;

    (13)  To prepare, print, or publish any manuscript, research article, report, study, discussion, reference, collection, or any pictorial or schematic representation or group or collection thereof, whether the same belongs to or is the work of any state agency or its employees, or the innovation corporation or its employees or a contractor of the innovation corporation.  The printing or publication may be accomplished through whatever person, company, or agency is deemed most appropriate by the board; and

    (14)  To do any or all other acts reasonably necessary to carry out the objects and purposes of the innovation corporation.

     §206M-E  Innovation corporation; exempted from certain state laws.  The innovation corporation shall be exempt from the following state laws:

     (1)  Section 78-1, relating to public employment;

     (2)  Chapter 36, relating to the management of state funds;

     (3)  Chapter 38, relating to deposits of public funds; and

     (4)  Chapter 76, relating to civil service.

     §206M-F  Officers and employees of the innovation corporation.  The board shall select the president of the innovation corporation and may also appoint other officers and employees as may be necessary in administering the affairs of the innovation corporation.  The board shall set the employees' duties, responsibilities, salaries, holidays, vacations, leaves, hours of work, and working conditions and may grant other benefits as it deems necessary.  New employees of the innovation corporation shall not be entitled to any benefits conferred under chapter 76, 78, 88, or 89, or any public employee collective bargaining agreement, executive order, executive directive, or rule; provided that any existing officer or employee of the State whose functions are transferred by this part shall not suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this part.

     §206M-G  Annual report.  The innovation corporation shall submit an annual report, not later than twenty days prior to the convening of each regular session to the governor and the legislature.  The report shall include the innovation corporation's audited financial statement, total amount of payroll and other disbursements made, and progress and accomplishments made during the year.

     §206M-H  Dissolution.  If the innovation corporation is dissolved, all of its property, real, personal, and mixed and wheresoever situated, shall vest immediately and absolutely in the development corporation, and none of its property shall inure to the benefit of any officer, director, or member of the innovation corporation.

     §206M-I  Patents, copyrights, and other rights.  Any patents, copyrights, inventions, discoveries, or other rights arising from innovation corporation activities shall belong to the innovation corporation and be subject to policies or rules as the board may adopt.

     §206M-J  Contracts with state agencies.  Any contract between the innovation corporation and any agency, office, department, or other administrative subdivision of the executive branch of the State shall include the following:

     (1)  Its termination date;

     (2)  Its intent and purpose;

     (3)  A statement establishing the full permissible extent of its applicability; and

     (4)  A description of the circumstances under which it may be amended or extended."

     SECTION 4.  Chapter 206M, Hawaii Revised Statutes, is amended by amending the title to read as follows:

     "[HIGH] HAWAII TECHNOLOGY DEVELOPMENT [CORPORATION]"

     SECTION 5.  Part I of chapter 206M, Hawaii Revised Statutes, is amended by amending the title to read as follows:

     "PART I. [HIGH] HAWAII TECHNOLOGY DEVELOPMENT CORPORATION"

     SECTION 6.  Sections 26-18(b), 171-2(11), 171-64.7(a)(8), 206M-1, 206M-2, 210-7(b), 211F-3(a), 227D-2(b), 304A-3101(b), and 394-8(b), Hawaii Revised Statutes, are amended by substituting the term "Hawaii technology development corporation" for "high technology development corporation" wherever the term appears.

PART III

     SECTION 7.  In codifying the new sections added by section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 8.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 9.  This Act, upon its approval, shall take effect on January 20, 2050.

 

 

Report Title:

High Technology Development Corporation; Small Business Innovation Research Grants; Hawaii Capital Loan Revolving Fund; Hawaii Technology Development Corporation

 

Description:

Part I:  Amends section 206M-15, Hawaii Revised Statutes, to add Phase II or III Small Business Innovation Research grants to qualifying criteria.  Increases the ceiling on transfers from the Hawaii Capital Loan Revolving Fund from $100,000 to an unspecified amount.  Part II:  Reestablishes the high technology innovation corporation.  Changes the name of the High Technology Development Corporation to Hawaii Technology Development Corporation.  Effective 1/20/2050.  (SD2)

 

 

 

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