Bill Text: HI SB1249 | 2017 | Regular Session | Amended

Hawaii Senate Bill 1249 (Prior Session Legislation)

Bill Title: Relating To Technology Innovation.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2017-02-16 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB1249 Detail]

Download: Hawaii-2017-SB1249-Amended.html

THE SENATE	S.B. NO.	1249
TWENTY-NINTH LEGISLATURE, 2017		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TECHNOLOGY INNOVATION.

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

SECTION 1. Chapter 206M, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . TECHNOLOGY INNOVATION CORPORATION

§206M-A Establishment of the technology innovation corporation; purpose. (a) There is established, as a body corporate, the technology innovation corporation. The technology innovation corporation shall be a public body corporate and politic and an instrumentality and agency of the State. The technology innovation corporation shall be attached to the high technology development corporation for administrative purposes.

(b) The purpose of the technology innovation corporation shall include but not be limited to the facilitation of the growth and development of the commercial high technology industry in Hawaii. Its duties shall include but not be limited to:

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

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

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

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

(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 technology 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 technology innovation corporation to provide these services and support in every case, except when the development corporation determines that the technology innovation corporation may not or cannot legally or operationally provide these services and support.

§206M-B Board of directors; composition. (a) The affairs of the technology innovation corporation shall be under the general management and control of a board of directors. The board of directors shall consist of the following eight voting members:

(1) The executive director and chief executive officer of the high technology development corporation, as an ex officio member; and

(2) Seven members appointed by the governor;

provided that all non ex officio members shall be appointed on the basis of their knowledge, interest, and proven expertise in, but not limited to one or more of the following fields: finance, commerce and trade, corporate management, marketing, economics, engineering, information technology and telecommunications, life sciences, and other high technology fields. All non ex officio members shall serve for a term of four years, except that half of those initially appointed may have reduced terms in accordance with section 26-34 so as to provide, as nearly as can be, for the expiration of an equal number of terms at intervals of one year, with each term commencing on July 1 and expiring on June 30.

(b) All members of the technology innovation corporation's 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.

§206M-C Powers of the board. The technology innovation corporation, under the direction of its 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 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 technology 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 technology 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 technology 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 other awards 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 technology innovation corporation shall be accepted unless approved or confirmed by its board of directors. Notwithstanding the foregoing, the technology innovation corporation may receive gifts, grants, devises, bequests, or other 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, devises, bequests, or other awards are being made; provided that no such receipt of moneys to the technology innovation corporation shall be accepted unless approved or confirmed by its board of directors;

(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 technology 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 technology innovation corporation or its employees or a contractor of the technology innovation corporation. The printing or publication may be accomplished through whatever person, company, or agency is deemed most appropriate by the board of directors; and

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

§206M-D Technology innovation corporation; exempt from certain state laws. To carry out the purposes and objectives of this part, the technology innovation corporation shall be granted flexibility in hiring its personnel and in handling and disbursing moneys by being exempt from the following state laws in the Hawaii Revised Statutes:

(1) Sections 36-27 and 36-30, relating to special fund reimbursements to the state general fund;

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

(3) Chapter 76, relating to civil service.

§206M-E Officers and employees of the technology innovation corporation. The executive director and chief executive officer of the development corporation shall be the president of the technology innovation corporation. The technology innovation corporation's board of directors may also appoint other officers and employees as may be necessary in administering the affairs of the technology innovation corporation. The technology innovation corporation's board of directors 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 technology 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-F Annual report. The technology innovation corporation shall submit an annual report no later than twenty days prior to the convening of each regular session of the legislature, to the governor, president of the senate, and speaker of the house of representatives. The report shall include but not be limited to the technology innovation corporation's audited financial statement, total amount of payroll and other disbursements made, and progress and accomplishments made during the year.

§206M-G Dissolution. If the technology 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 technology innovation corporation.

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

§206M-I Contracts with state agencies. Any contract between the technology 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.

§206M-J Technology innovation corporation special fund; established. (a) There is established in the state treasury a fund to be known as the technology innovation corporation special fund, into which shall be deposited appropriations by the legislature.

(b) Moneys in the special fund shall be used for the duties and purposes of the technology innovation corporation pursuant to section 206M-A."

SECTION 2. Section 36-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center enterprise special fund under section 201B-8;

(6) Special funds established by section 206E-6;

(7) Aloha Tower fund created by section 206J-17;

(8) Funds of the employees' retirement system created by section 88-109;

(9) Hawaii hurricane relief fund established under chapter 431P;

(10) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(11) Tourism special fund established under section 201B‑11;

(12) Universal service fund established under section 269‑42;

(13) Emergency and budget reserve fund under section 328L‑3;

(14) Public schools special fees and charges fund under section 302A-1130;

(15) Sport fish special fund under section 187A-9.5;

[[](16)[]]Neurotrauma special fund under section 321H-4;

[[](17)[]]Glass advance disposal fee established by section 342G-82;

[[](18)[]]Center for nursing special fund under section 304A‑2163;

[[](19)[]]Passenger facility charge special fund established by section 261-5.5;

[[](20)[]]Solicitation of funds for charitable purposes special fund established by section 467B-15;

[[](21)[]]Land conservation fund established by section 173A-5;

[[](22)[]]Court interpreting services revolving fund under section 607-1.5;

[[](23)[]]Trauma system special fund under section 321-22.5;

[[](24)[]]Hawaii cancer research special fund;

[[](25)[]]Community health centers special fund;

[[](26)[]]Emergency medical services special fund;

[[](27)[]]Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[](28)[]]Shared services technology special fund under section 27-43;

[[](29)[]]Automated victim information and notification system special fund established under section 353-136;

[[](30)[]]Deposit beverage container deposit special fund under section 342G-104;

[[](31)[]]Hospital sustainability program special fund under [[]section 346G-4[]];

[[](32)[]]Nursing facility sustainability program special fund under [[]section 346F-4[]];

[[](33)[]]Hawaii 3R's school improvement fund under section 302A-1502.4;

[[](34)[]]After-school plus program revolving fund under section 302A-1149.5; [~~and~~]

[[](35)[]]Civil monetary penalty special fund under section 321‑30.2[,]; and

(36) Technology innovation corporation special fund under section 206M-J,

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 3. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each special fund, except the:

(1) Special out-of-school time instructional program fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Special funds established by section 206E-6;

(6) Aloha Tower fund created by section 206J-17;

(7) Funds of the employees' retirement system created by section 88-109;

(8) Hawaii hurricane relief fund established under chapter 431P;

(9) Convention center enterprise special fund established under section 201B-8;

(10) Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

(11) Tourism special fund established under section 201B‑11;

(12) Universal service fund established under section 269‑42;

(13) Emergency and budget reserve fund under section 328L‑3;

(14) Public schools special fees and charges fund under section 302A-1130;

(15) Sport fish special fund under section 187A-9.5;

[[](16)[]]Neurotrauma special fund under section 321H-4;

[[](17)[]]Center for nursing special fund under section 304A‑2163;

[[](18)[]]Passenger facility charge special fund established by section 261-5.5;

[[](19)[]]Court interpreting services revolving fund under section 607-1.5;

[[](20)[]]Trauma system special fund under section 321-22.5;

[[](21)[]]Hawaii cancer research special fund;

[[](22)[]]Community health centers special fund;

[[](23)[]]Emergency medical services special fund;

[[](24)[]]Rental motor vehicle customer facility charge special fund established under section 261-5.6;

[[](25)[]]Shared services technology special fund under section 27-43;

[[](26)[]]Nursing facility sustainability program special fund established pursuant to [[]section 346F-4[]];

[[](27)[]]Automated victim information and notification system special fund established under section 353-136;

[[](28)[]]Hospital sustainability program special fund under [[]section 346G-4[]]; [~~and~~]

[[](29)[]]Civil monetary penalty special fund under section 321‑30.2[,]; and

(30) Technology innovation corporation special fund under section 206M-J,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000 or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 to be deposited into the technology innovation corporation special fund established by section 206M-J, Hawaii Revised Statutes.

There is appropriated out of the technology innovation corporation special fund the sum of $200,000 or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 for the purposes set forth in section 206M-J, Hawaii Revised Statutes, established by section 1 of this Act.

The sums appropriated shall be expended by the technology innovation corporation for the purposes of this Act.

SECTION 5. In codifying the new sections added by section 1 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 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2017.

Report Title:

Technology Innovation Corporation; Established; Appropriation

Description:

Establishes the Technology Innovation Corporation, a corporation attached to the High Technology Development Corporation, to assist in attracting high technology development opportunities to the State. Appropriates funds. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.