Report Title:

Hawaii Tourism Authority; Contracts; Required Provisions; Report to Legislature

Description:

Establishes provisions required in certain contracts entered into by the Hawaii Tourism Authority (HTA); requires HTA to include in its annual report details regarding contracts using public funds; establishes that intellectual property arising out of HTA's works for hire contracts shall become the property of the State. (SB1460 HD1)

THE SENATE

S.B. NO.

1460

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

relating to contracts entered into by the hawaii tourism authority.

 

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

SECTION 1. Chapter 201B, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§201B- Service contracts; required provisions; reporting requirement. (a) If a service contract exceeds $6,000,000, or if the executive director can reasonably infer and determine that the circumstances of the contract is of a level of complexity that it should include such provisions, then the following provisions shall be included in the service contract:

(1) Ownership rights, copyrights, and licensing of intellectual property developed or created pursuant to the contract;

(2) Requiring loyalty and support of the authority and its policies, programs, and goals, including provisions:

(A) Prohibiting lobbying, promotional, and other activity that conflict with the programs and goals of the State or the authority;

(B) Restraining criticism or disparagement of the policies of the State or the authority;

(C) Prohibiting interference with the business relationships of the authority or any government official or government agency; and

(D) Prohibiting engaging in any activity that competes with the authority or that is contrary to the goals and programs of the authority;

(3) Prohibiting the contractor from entering into any subcontract or other agreement without the prior consent of the authority, and to prohibit subcontracts that would obligate the State to fund a project beyond the term of the contractor's contract;

(4) Implementing standards of conduct that require the contractor to act in a fiduciary capacity and to exercise reasonable care and competence in performance of the contract;

(5) Requiring confidentiality during negotiation and performance of the contract, and following completion or termination of the contract;

(6) Requiring the contractor to use the contractor's best efforts and to require good faith to fulfill contractual obligations and duties in a timely manner;

(7) Requiring payments made under the contract to be directly related to deliverables; and

(8) Establishing performance standards that detail specific goals and timelines for completion of the contract and that provide the basis for monitoring contract compliance by the authority.

(b) Notwithstanding subsection (a), if it appears in the course of negotiations of a contract that inclusion in the contract of provisions specified in subsection (a) would prevent agreement on a contract for any legitimate reason, the authority may suspend any one or all of the provisions; provided that the suspension and the reasons therefor are noted in a separate memorandum signed by the executive director and appended to the contract; and provided further that a copy of the memorandum be forwarded to the legislature within ten days.

(c) In its annual report to the legislature, the authority shall provide details regarding each contract entered into that uses public funds and the results of those contracts, including the names of all contractors, a description of the contract, the amount of each contract, the suspension of provisions under subsection (b), and whether the performance and monitoring specifications of subsection (a)(8) have been met for the contract.

§201B- Works for hire. Any intellectual property arising from works for hire contracted for by the Hawaii tourism authority shall become the intellectual property of the State."

SECTION 2. New statutory material is underscored.

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