Hawaii-2018-HB973-Introduced

SECTION 1. The legislature recognizes the importance of fostering science, technology, engineering, and mathematics education in our public education system from grade school through the university level and beyond. Each year, the legislature appropriates significant sums to fund initiatives that further science, technology, engineering, and mathematics education at all levels of Hawaii's education system. A science, technology, engineering, and mathematics education and a culture of innovation are essential to help grow and diversify Hawaii's economy with new products, services, and processes.

However, each year, many Hawaii residents leave the State to pursue careers in science, technology, engineering, and mathematics across the United States and the globe. Many of these residents do not want to leave but feel that they have no choice because there are too few career opportunities in science, technology, engineering, and mathematics in the State.

The legislature finds that funding science, technology, engineering, and mathematics educational initiatives alone does not ensure the availability of jobs in science, technology, engineering, and mathematics for Hawaii's residents. Educational efforts to promote science, technology, engineering, and mathematics must be matched with initiatives that help foster jobs in research and technology, which form the core of innovation. Innovative research and development help spur growth and maintain the technology industry and are the critical first step in the product development cycle.

Innovation is essential for creating new jobs in the high-technology sector as well as in more-traditional economic sectors. In recent years, innovation has led to new jobs in sectors as diverse as defense or dual-use technology, software and information technology, life sciences and biotechnology, and clean energy. At the same time, innovations ripple through the economy, creating jobs for workers building advanced infrastructure, such as clean energy solutions; installing broadband networks; and using new devices and products in the service industries, such as healthcare and tourism. Innovation is also critical for sustaining the vitality and resilience of Hawaii's economy.

Although future challenges are impossible to predict, the State's economy will be able to respond to any challenges by adapting innovative solutions and re-deploying old activities and jobs, thereby making industries in the State less susceptible to adverse circumstances.

The legislature further finds that innovation is the key to remaining competitive globally; creating new and better science, technology, engineering, and mathematics jobs for Hawaii's residents; and creating a more resilient economy. Support for research and development stimulates the growth of jobs in science, technology, engineering, and mathematics.

The purpose of this Act is to support research and development in the State by establishing a research and technology grant program within the high technology development corporation.

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

as follows:

"CHAPTER

RESEARCH AND TECHNOLOGY GRANT PROGRAM

§ -1 Definitions. As used in this chapter:

"Corporation" means the high technology development corporation.

"Qualified research and technology company" means a Hawaii for-profit company primarily engaged in research, mathematics, science, and engineering activities, as evidenced by the receipt of patents or federal research contracts performed in the State.

§ -2 Research and technology grant program; established. There is established within the corporation a research and technology grant program to be developed and administered by the corporation and through which the corporation shall award grants to qualified research and technology companies. The corporation shall accept applications for grants on forms prescribed and prepared by the corporation.

§ -3 Eligibility for research and technology grants. (a) The corporation shall award grants for the research and technology grant program only to research and technology companies that:

(1) Have applied for and received United States and foreign patents on their technology;

(2) Have applied for and received federal research contracts;

(3) Comply with all applicable federal, state, and county laws, rules, ordinances, and policies;

(4) Agree not to use state funds for entertainment or lobbying activities;

(5) Allow the corporation, legislative committees and their staff, and the auditor full access to their records, files, and other related documents and information for purposes of monitoring, measuring the effectiveness of, and ensuring the proper expenditure of the grant; and

(6) Are incorporated under the laws of the State.

No grant shall be awarded to a qualified research and technology company that has been in operation for fewer than five years.

(b) Projects eligible to receive grants from the research and technology grant program shall include:

(1) Projects that foster science, technology, engineering, and mathematics education at the K-12 or post-secondary levels;

(2) Projects that are based on the principles of robotics, engineering, science, or mathematics; and

(3) Projects that involve the direct participation of students at the K-12 or post-secondary levels.

(c) The grant shall be equal to fifty per cent of the costs incurred in Hawaii for an eligible project, pursuant to subsection (b), during the previous calendar year, or paid after January 1, 2016.

(d) Preference for the award of grants shall be given to projects that involve the input of students and that attract resources and funding from outside Hawaii into the State.

(e) No individual grant shall exceed $ in any calendar year, and a qualified research and technology company shall be awarded no more than one grant per calendar year.

§ -4 Reports. The corporation shall submit a report to the legislature no later than twenty days prior to the convening of each regular session in an even-numbered year. The report shall include:

(1) The total number of grant applications received;

(2) The total number of grants awarded;

(3) The actual economic and workforce development benefits realized from the awarding of each grant;

(4) The total amount of money awarded for each grant; and

(5) Any other information about the research and technology grant program that the corporation deems necessary.

§ -5 Rules. The corporation shall adopt rules pursuant to chapter 91 to implement this chapter.

§ -6 Exemption from chapters 42F, 103D, and 103F. Chapters 42F, 103D, and 103F shall not apply to the grants made pursuant to this chapter. All grants shall be made in accordance with the standards and conditions specified in section -3.

§ -7 Research and technology grant program; appropriations. Moneys appropriated for the research and technology grant program may be used to pay for the cost of administering, operating, and marketing the grant program, as determined by the chief executive officer of the 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 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 for the purposes of this Act.

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

SECTION 4. This Act shall take effect on July 1, 2017.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	973
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII