Bill Text: HI HB70 | 2014 | Regular Session | Amended

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Bill Title: High Technology Innovation Corporation; HTIC Board of Directors; Public-private Partnership Authority; Pilot Project; Appropriation ($)

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Enrolled - Dead) 2014-02-19 - Received notice of discharge of conferees (Hse. Com. No. 41). [HB70 Detail]

Download: Hawaii-2014-HB70-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	70
TWENTY-SEVENTH LEGISLATURE, 2013		H.D. 2
STATE OF HAWAII		S.D. 2

A BILL FOR AN ACT

 

 

RELATING TO ECONOMIC DEVELOPMENT.

 

 

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

 

PART I

     SECTION 1.  Act 240, Session Laws of Hawaii 2012, is amended by amending section 8 to read as follows:

     "SECTION 8.  This Act shall take effect upon its approval; provided that section 6 shall take effect on June 30, [2013.] 2018."

     SECTION 2.  Section 206M-52, Hawaii Revised Statutes, is amended as follows:

     1.   By amending subsection (a) to read:

     "(a)  The affairs of the high technology innovation corporation shall be under the general management and control of a board of directors consisting of nine voting members.  [Four members of the board of directors of the high technology development corporation shall be ex officio, voting members of the high technology innovation corporation's board and shall be selected by the high technology development corporation's board of directors for terms to be determined by the high technology development corporation's board.  The executive director and chief executive officer of the high technology development corporation shall serve as an ex officio, nonvoting member of the high technology innovation corporation board.  The remaining four members shall be appointed by the governor from lists of nominees provided by the president of the senate and the speaker of the house of representatives.  The governor shall appoint two persons from the list submitted by the president of the senate and two persons from the list submitted by the speaker of the house of representatives.  The lists of nominees provided by the president of the senate and the speaker of the house of representatives shall consist of members of the general public selected 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 the members appointed from the general public shall serve for a term of four years, except that half of those initially appointed from the public 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.]  The members of the board shall be as follows:

     (1)  The executive director and chief executive officer of the high technology development corporation;

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

     (3)  The president of the Hawaii strategic development corporation;

     (4)  The executive director of the natural energy laboratory of Hawaii authority;

     (5)  The executive director of the agribusiness development corporation;

     (6)  The executive director of the Hawaii housing finance development corporation;

     (7)  The energy administrator of the Hawaii state energy office;

     (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."

     2.   By amending subsection (c) to read:

     "(c)  [The members of the high technology innovation corporation's board shall elect]  The executive director and chief executive officer of the high technology development corporation shall serve as the chairperson of the board."

     SECTION 3.  Section 206M-55, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206M-55[]]  Officers and employees of the innovation corporation.  [The executive director and chief executive officer of the high technology development corporation shall be the president of the high technology innovation corporation.]  The high technology innovation corporation's board of directors shall select the president of the high technology innovation corporation and may also appoint other officers and employees as may be necessary in administering the affairs of the high technology innovation corporation.  The high 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 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."

     SECTION 4.  Notwithstanding any law to the contrary, the terms of all currently appointed members of the high technology innovation corporation's board shall expire upon the effective date of this Act.

PART II

     SECTION 5.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

PUblic-private partnership authority

     §   -1  Findings and purpose.  The legislature finds that these are difficult economic times for all levels of government, as public service demands for an increasing population put pressure on revenue resources.  The State faces the challenge of balancing its budget while addressing escalating infrastructure and service needs.  Due to insufficient funding and postponed maintenance, these daily demands continue to increase.

     Governments around the world have engaged in public-private partnerships to address these economic challenges.  State agencies are hamstrung by their limited missions and dwindling resources.  Creating a partnership agency to collaborate with all state agencies and private sector entities may help deliver services and facilities more effectively.

     The purpose of this chapter is to create a means and process to use the skills and assets of both the public and private sectors to deliver services and facilities for the economic, environmental, and social benefit of the people of Hawaii.  This chapter establishes the public-private partnership authority to administer appropriate and culturally-sensitive projects.  The authority shall coordinate and administer projects, while ensuring that resources are maintained for the people of Hawaii.  The authority shall identify suitable projects, carry out appropriate analyses, enter into public-private agreements, and provide leadership for the facilitation of financing, improvement, or enhancement of appropriate facilities, operations, and property.

     §   -2  Definitions.  As used in this chapter, unless the context clearly requires otherwise:

     "Authority" means the public-private partnership authority.

     "Board" means the board of directors of the public-private partnership authority.

     "Cooperative agreement" means an instrument, such as a contract, compact, memorandum of understanding, or agreement, that is signed and binding upon all parties to the agreement.

     "Management rights" means the authority to control and manage projects.

     "Project" means a specific undertaking related to the operations and properties of any public agency, including and not limited to:

     (1)  Development of plans for a public agency; and

     (2)  Planning, improvement, construction, rehabilitation, alteration, maintenance, or repair of real property or energy generation facilities.

     "Qualified person" means any individual, partnership, corporation, not-for-profit organization, or public agency possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible qualifications, as deemed desirable by the authority.

     §   -3  Public-private partnership authority; established.  (a)  There is established the public-private partnership authority, which shall be a public body corporate and politic and an instrumentality and agency of the State.  The authority shall be headed by a board of directors.  The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.

     The authority shall:

     (1)  Identify projects that are suitable under this chapter;

     (2)  Conduct analyses, as appropriate;

     (3)  Enter into public-private partnership agreements, as appropriate; and

     (4)  Provide leadership for public-private partnership projects.

     (b)  The board of directors of the public-private partnership authority shall consist of five voting members and one non-voting member.  The voting members shall include:

     (1)  The comptroller, or the first deputy to the comptroller, or a designated representative;

     (2)  The director of finance, or a designated representative;

     (3)  The director of business, economic development, and tourism, or a designated representative;

     (4)  One member to be appointed by the speaker of the house of representatives; and

     (5)  One member to be appointed by the president of the senate.

The ex officio, non-voting member shall be the aha moku advisory committee member of the moku in which the project is sited.

     The members appointed by the speaker of the house of representatives and the president of the senate shall possess sufficient knowledge, experience, and proven expertise in small and large businesses within the development or recreation industries, banking, real estate, finance, promotion, marketing, or management.

     The term of office of the members appointed by the speaker of the house of representatives and the president of the senate shall be four years.

     Three members shall constitute a quorum, and a minimum of three votes shall be necessary for all actions by the board.

     (c)  The board shall appoint an executive director, who shall serve at the pleasure of the board and shall be exempt from chapter 76.  The salary of the executive director shall be established by the board.

     (d)  The board, through its executive director, may appoint officers, agents, and employees; prescribe their duties and qualifications; and establish their salaries, without regard to chapter 76.

     §   -4  Powers; generally.  Except as otherwise limited by this chapter, the authority may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at its pleasure;

     (3)  Make and alter bylaws for its organization and internal management;

     (4)  Adopt rules under chapter 91 necessary to implement this chapter in connection with its projects;

     (5)  Make and execute contracts, leases, and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

     (6)  Manage projects by itself or in partnership with qualified persons or other governmental agencies;

     (7)  Receive, examine, and determine the acceptability of applications of qualified persons for public-private partnerships;

     (8)  Coordinate its activities with any federal or state programs;

     (9)  Provide advisory, consultative, training, and educational services and technical assistance to any person, partnership, or corporation, either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (10)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (11)  Accept gifts or grants in any form from any public agency or any other source;

    (12)  Coordinate with any public agency;

    (13)  Recommend to the appropriate public agency the acquisition of any privately owned real or personal property that may be appropriate for the purposes of this chapter; and

    (14)  Do all things necessary or proper to carry out the purposes of this chapter.

     §   -5  Projects and plans.  (a)  The authority may develop plans and implement projects on behalf of public agencies, as appropriate.

     (b)  The authority may enter into a cooperative agreement with any public agency to implement projects on behalf of the public agency.

     (c)  The authority may enter into cooperative agreements with persons or public agencies when the powers, services, and capabilities of the persons or agencies are deemed necessary and appropriate.

     (d)  Prior to implementing any project, the authority shall submit the proposed plan for the project, together with any amendments, to and obtain the prior approval of the board and the executive of any affected public agency.

     §   -6  Approval of projects.  All projects to be developed by the authority shall be approved by the board and the executive of any affected public agency.

     §   -7  Transfer of management rights.  (a)  Notwithstanding chapter 171 or any provision of this chapter to the contrary, any public agency may transfer, subject to the approval of the board or executive of the public agency, management rights for projects under its jurisdiction to the authority for purposes of this chapter.

     (b)  If the authority finds that projects under the control and management of any public agency are suitable for its purposes under this chapter, the authority may lease properties from or agree to manage the properties of the agency having jurisdiction, upon terms and conditions as agreed to by the parties.

     (c)  Notwithstanding subsection (b) to the contrary, no property shall be leased to the authority if the lease would impair any covenant between the State or any county, or any department or board thereof, and the holders of bonds issued by the State or the county, or any department or board thereof.

     §   -8  Public-private partnership revenues.  Any revenues generated by or on behalf of the authority from public-private partnership projects and plans developed pursuant to this chapter shall be deposited into the general fund.

     §   -9  Exemption from taxation.  The authority shall not be required to pay state taxes of any kind.

     §   -10  Application of chapter.  The authority and all projects implemented under this chapter shall comply with all state laws, other than the exemption from state taxes in §   ‑9.

     §   -11  Reports and evaluation.  (a)  The authority shall submit a complete and detailed annual report of its plans and activities as follows:

     (1)  To the governor no later than twenty days prior to the convening of each regular legislative session; and

     (2)  To the legislature, no later than sixty days after the submission of the report as required in paragraph (1).

     (b)  The board shall submit to the governor and the legislature, no later than twenty days prior to the convening of each regular session, an evaluation of the executive director appointed pursuant to section    -3."

     SECTION 6.  After the adoption of rules pursuant to section    -4(4), Hawaii Revised Statutes, established by section 5 of this Act, the public-private partnership authority shall initiate pilot projects pursuant to chapter           , Hawaii Revised Statutes, established by section 5 of this Act, as follows:

     (1)  A film production facility on state lands on the most populous island of a county with a population between one hundred thousand and one hundred seventy-five thousand;

     (2)  A main-street project on state lands in Wahiawa, city and county of Honolulu; and

     (3)  One county-initiated project.

     SECTION 7.  The public-private partnership authority shall include in its annual report to the governor and the legislature required by section    -11, Hawaii Revised Statutes, a detailed report on the status of each pilot project.

     The public-private partnership authority shall notify the governor and the legislature upon the completion of each pilot project and, within ninety days of each pilot project's completion, submit a report to the governor and the legislature containing a review and evaluation of each pilot project and any recommendations to improve the effectiveness of chapter      , Hawaii Revised Statutes.

     SECTION 8.  The public-private partnership authority shall neither plan nor implement any projects other than the pilot projects identified in this part nor enter into any agreements or contracts related to the planning or implementation of any projects other than the pilot projects identified in this part.

     SECTION 9.  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 2013-2014 and the same sum or so much thereof as may be necessary for fiscal year 2014-2015 for:

     (1)  The establishment and operation of the public-private partnership authority pursuant to section 5 of this Act; and

     (2)  The funding of       staff positions.

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

PART III

     SECTION 10.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 11.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect upon its approval; provided that:

     (1)  Section 1 shall take effect on July 1, 2050; and

     (2)  Part II of this Act shall take effect on July 1, 2050, and shall be repealed on July 1, 2018.

 

Report Title:

High Technology Innovation Corporation; HTIC Board of Directors; Public-private Partnership Authority; Pilot Project; Appropriation

 

Description:

Part I extends the sunset date of the HTIC from 2013 to 2018 and changes the composition of the HTIC's board of directors.  Part II establishes the public-private partnership authority (PPPA); requires the PPPA to initiate pilot projects; appropriates an unspecified sum for the PPPA; and repeals on 07/01/2050.  Section 1 effective 07/01/2050.  (SD2)

 

 

 

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