Report Title:

Hawaii Innovation Development Corporation

 

Description:

Establishes the Hawaii Innovation Development Corporation to promote the development and exploitation of innovations and inventions that have direct economic benefits for Hawaii. (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2395

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO ECONOMIC DEVELOPMENT.

 

 

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

 


     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII INNOVATION DEVELOPMENT CORPORATION

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

     "Board" means the board of directors of the Hawaii innovation development corporation.

     "Development corporation" means the Hawaii innovation development corporation.

     "Innovation" means any new product or invention.     "Invention" means any new process or technique for which a patent has been granted or, in the opinion of the board, the chance of obtaining a patent is favorable.

     "Inventor" means any creator of intellectual property whose work may result in the grant of a patent, copyright, trademark, or other type of intellectual property.

     "Labor organization" means a formally organized association of workers who have united to represent their collective views on wages, hours, and working conditions.

     "Product" means any device, technique, or process that is or may be exploitable commercially and has advanced beyond the theoretical state and is readily capable of being or has been reduced to practice, except for pure research.

     §   ‑2  Hawaii innovation development corporation; establishment.  There is established the Hawaii innovation development corporation, which shall be a public body and a body corporate and politic.  The development corporation shall be placed within the department of business, economic development, and tourism for administrative purposes.  The purpose of the development corporation shall be to promote the development and exploitation of innovations or inventions that have direct economic benefits for Hawaii.

     §   ‑3  Board of directors.  (a)  The governing body of the development corporation shall consist of a board of directors.  The board shall consist of:

     (1)  Six voting members, appointed by the governor for staggered terms pursuant to section 26‑34.  The members shall be selected on the basis of their knowledge, interest, and proven expertise in one or more of the following fields: education, labor, finance, marketing, commerce and trade, and other innovation or invention related fields; provided that at least:

         (A)  One member shall represent inventors;

         (B)  One member shall represent teachers; and

         (C)  One member shall represent labor organizations;

         and

     (2)  The director of business, economic development, and tourism, the director of finance, and an appointed member from the board of the Hawaii strategic development corporation, or their designated representatives, who shall serve as ex officio voting members.

     (b)  The director of business, economic development, and tourism shall serve as the chairperson until a chairperson is elected by the board from the membership.  The board may elect other officers as it deems necessary.

     (c)  The members of the board 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 a chief executive officer and shall set the salary and duties of the chief executive officer.  The chief executive officer shall serve at the pleasure of the board and shall be exempt from chapters 76 and 89.

     (e)  The board may appoint an advisory committee as the board deems necessary in furtherance of this chapter.  The advisory committee shall serve without compensation, but may be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

     §   ‑4  Meetings of the board.  (a)  The meetings of the board shall be open to the public as provided in chapter 92, except that the board may enter into an executive meeting that is closed to the public when it is necessary for the board to receive or discuss proprietary information.

     (b)  The board shall be exempt from sections 26‑35(a)(4) and (5).

     §   ‑5  Powers; generally.  The development corporation shall have the powers necessary to carry out its purpose, including the general power to:

     (1)  Sue and be sued;

     (2)  Adopt, amend, and repeal bylaws for its organization and internal administration;

     (3)  Acquire in any lawful manner any property, real, personal, or mixed, tangible or intangible, or any interest therein; to hold, maintain, use, and operate that property; and to sell, lease, or otherwise dispose of that property at a time, in a manner, and to the extent deemed necessary or appropriate to carry out its purposes;

     (4)  Enter into and perform contracts, leases, cooperative agreements, or other transactions as may be necessary in the conduct of its business and on terms it may deem appropriate, with any agency or instrumentality of the United States, with any state, territory, or possession, or with any political subdivision thereof, or with any person, firm, association, or corporation;

     (5)  Determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid;

     (6)  Execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers;

     (7)  Adopt rules in accordance with chapter 91 necessary to effectuate this chapter; and

     (8)  Do any and all things necessary or convenient to carry out its purposes and exercise the powers granted in this chapter.

     §   ‑6  Innovations and inventions revolving fund.  (a)  There is established an innovations and inventions revolving fund into which shall be deposited appropriations by the legislature subject to the approval of the governor, proceeds from the development and commercial exploitation of innovations and inventions, fees collected, and grants from public agencies and private persons for the purposes of developing and exploiting innovations and inventions that have direct economic benefits for Hawaii, including patenting, copyrighting, licensing, and marketing innovations and inventions.

     (b)  The fund shall be used by the development corporation to develop and exploit innovations and inventions that have direct economic benefits for Hawaii.

     §   ‑7  Exemption from taxation.  All revenues and receipts derived by the development corporation from the development and exploitation of innovations and inventions, or under an agreement pertaining thereto, shall be exempt from all state and county taxation.  Any right, title, and interest of the development corporation in any innovation or invention shall also be exempt from all state and county taxation.

     §   ‑8  Confidentiality.  Notwithstanding any other law to the contrary, any documents or data made or received by any member or employee of the development corporation shall not be a government record to the extent that the material or data consists of trade secrets or other proprietary information.

     §   ‑9  Limitation on liability.  Notwithstanding any other law to the contrary, nothing in this chapter shall create an obligation, debt, claim, cause of action, claim for relief, charge, or any other liability of any kind whatsoever in favor of any person or entity, against the State or its officers and employees, without regard to whether that person or entity receives any benefits under this chapter.  The State and its officers and employees shall not be liable for the results of any investment, purchase of securities, loan, or other assistance provided pursuant to this chapter.  Nothing in this chapter shall be construed as authorizing any claim against the development corporation in excess of any note, loan, or other specific indebtedness incurred by the development corporation or in excess of any insurance policy acquired for the development corporation or its employees.

     §   ‑10  Annual report.  The Hawaii innovation development corporation shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the implementation of this chapter."

     SECTION 2.  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, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 3.  This Act shall take effect on July 1, 2034.