Report Title:

Economic Diversification Authority

Description:

Establishes the economic diversification authority within the department of business, economic development, and tourism for administrative purposes. (HB1579 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1579

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the economic diversification authority.

 

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

SECTION 1. The legislature finds that the economy of Hawaii has traditionally relied on only a few industries. In recent decades, tourism has been the primary engine of economic growth. Economic diversity is essential for the sustained and healthy development of the State.

The legislature further finds that a number of entities have been established to promote economic growth, such as the Hawaii community development authority, the Aloha Tower development corporation, the high technology development corporation, and the Hawaii strategic development corporation. These bodies have demonstrated varying levels of success, and a clear need exists for improvement in strategic planning, efficiency of operations, and coordination in the State's efforts at economic diversification.

Accordingly, the purpose of this Act is to establish the economic diversification authority within the department of business, economic development, and tourism for administrative purposes to identify ways to diversify Hawaii's economy by developing and implementing an economic diversification plan, increasing government efficiency and cost savings, and annually proposing legislation relating to economic diversification.

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

"Chapter

ECONOMIC DIVERSIFICATION AUTHORITY

§  -1  Definitions. As used in this chapter, unless the context clearly requires otherwise:

"Agency" means any agency, department, authority, board, commission, the University of Hawaii, or any other unit of the State or a county.

"Authority" means the economic diversification authority, and any successor thereto.

"Board" means the board of directors of the authority.

"Executive director" means the executive director of the authority.

§ -2  Economic diversification authority; establishment; board; staff. (a) There is established the economic diversification authority within the department of business, economic development, and tourism for administrative purposes only.

(b) The authority shall be headed by a board of directors consisting of the following members:

(1) The director of business, economic development, and tourism, or the director's designee, who shall serve as the chairperson of the board;

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

(3) The administrator of the business development and marketing division of the department of business, economic development, and tourism or the administrator's designee;

(4) The chief executive officer of the Aloha Tower development corporation or the chief executive officer's designee;

(5) The executive director of the Hawaii community development authority or the executive director's designee;

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

(7) The chief executive officer of the high technology development corporation or the chief executive officer's designee;

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

(9) The chairperson of the community-based economic development advisory council or the chairperson's designee; and

(10) Four members from the private sector to be appointed by the governor as provided in section 26-34; provided that:

(A) One member shall be appointed from a list of nominees submitted by the president of the senate; and

(B) One member shall be appointed from a list of nominees submitted by the speaker of the house of representatives.

(c) The members of the board appointed under subsection (b) shall serve without compensation, but may be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

(d) The board shall appoint an executive director, who shall serve at the pleasure of the board and shall be exempt from chapter 76. The board shall set the salary and duties of the executive officer.

(e) In carrying out its duties under this section, the authority may request staff assistance from the department of business, economic development, and tourism and other appropriate state agencies. The authority may also employ, without regard to chapter 76, and at pleasure dismiss such persons as it finds necessary for the performance of its functions and fix their compensation.

§  -3  Duties. The board shall:

(1) Create a vision and develop a long-range plan for economic diversification in Hawaii, including development, infrastructure, and educational issues;

(2) Develop, coordinate, and implement state policies and directions for economic diversification and related activities, taking into account the economic, social, and physical effects on the State;

(3) Develop and implement the state economic diversification plan, which shall be updated at least every three years, to promote and market the State as offering a desirable environment for economic development;

(4) Have a permanent, strong focus on the marketing and promotion of Hawaii as a state with a favorable and competitive business climate;

(5) Conduct market development-related research as necessary;

(6) Work to eliminate or reduce barriers to economic diversification in the State;

(7) Coordinate all agencies and cooperate with the private sector in economic diversification;

(8) Establish a public information and educational program to inform the public about economic diversification;

(9) Encourage the development of educational and other training and counseling programs that will enable residents of the State to take advantage of the opportunities provided by economic diversification;

(10) Foster increased collaboration and dialog among the agencies represented on the board of directors;

(11) Explore ways to remove redundancies in the delivery of services to the public relating to economic diversification, including consolidating agencies to eliminate duplicative or outmoded functions and activities, to increase efficiency in the delivery of those services, enhance productivity, eliminate unnecessary regulation, cut costs, reduce public inconvenience, and realize significant long-term savings;

(12) Annually submit a report of its activities and proposed legislation implementing its economic diversification plan to the governor and legislature no later than twenty days before the convening of each regular session; and

(13) Adopt rules in accordance with chapter 91 as may be necessary to implement this chapter.

§  -4 Meetings of the board. The meetings of the board shall be open to the public as provided in section 92-3, except that when it is necessary for the board to receive information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interest of the enterprise, the board may enter into an executive meeting that is closed to the public.

§  -5 Promotional and marketing functions of the authority. The authority shall disseminate information developed for or by the authority pertaining to economic development and diversification to assist present industry in the State, attract new industry and investments to the State, and assist new and emerging industry with good growth potential or prospects in jobs, exports, and new products. The economic and industrial promotional activities of the authority may include the use of literature, advertising, demonstrations, displays, market testing, lectures, travel, motion picture and slide films, and such other promotional and publicity devices as may be appropriate."

SECTION 3. This Act shall take effect upon its approval.