Report Title:

Natural Energy Laboratory; Innovation Corporation

 

Description:

Establishes the natural energy laboratory of Hawaii innovation corporation.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

192

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO ESTABLISHMENT OF NATURAL ENERGY LABORATORY OF hAWAII AUTHORITY INNOVATION CORPORATION.

 

 

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

 


     SECTION 1.  The legislature finds that the purpose of the natural energy laboratory of Hawaii authority is to facilitate research, development, and commercialization of natural energy resources and ocean-related research, technology, and industry in Hawaii, and to engage in retail, commercial, or tourism activities that will financially support that research, development, and commercialization.  The legislature further finds that the purposes of the natural energy laboratory of Hawaii authority will be more efficiently served by a not‑for‑profit corporation attached to the agency.

     The natural energy laboratory of Hawaii authority innovation corporation will be an entity responsible for supporting the natural energy laboratory of Hawaii authority by furnishing the means, methods, and agencies by which management, programming, training, investigation, research, and analysis may be conducted and its resulting benefits made available to the public.  The natural energy laboratory of Hawaii authority innovation corporation will also be responsible for managing its assets, resources, and funding, planning and implementing its programs, and promoting and marketing Hawaii as a location for research and commercial natural energy activity.

     The purpose of this Act is to establish a not-for-profit natural energy laboratory of Hawaii authority innovation corporation.

     SECTION 2.  Chapter 227D, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART    .  NATURAL ENERGY LABORATORY OF HAWAII AUTHORITY INNOVATION CORPORATION

     §227D‑    Establishment of the natural energy laboratory of Hawaii authority innovation corporation; purpose; duties.  (a)  There is established, as a body corporate, the natural energy laboratory of Hawaii authority innovation corporation.  For the purposes of this part, "corporation" means the natural energy laboratory of Hawaii authority innovation corporation.  The corporation shall be a private, not-for-profit organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.  The corporation shall be attached to the natural energy laboratory of Hawaii authority for administrative purposes.

     (b)  The purpose of the corporation shall include but not be limited to the facilitation of the growth and prosperity of the State's economy by providing resources for alternative energy research and development.  The corporation shall implement this purpose by:

     (1)  Furnishing the means, methods, and agencies by which management, programming, training, investigation, research, and analysis may be conducted;

     (2)  Other means to make the benefits of programming, training, investigation, research, and analysis available to the public; and

     (3)  Any and all other acts reasonably designed to promote the foregoing purposes in the interest of promoting the general welfare of the people of the State.

     (c)  The corporation's duties shall include but not be limited to:

     (1)  Managing the assets and resources of the corporation, including its land, facilities, and other resources;

     (2)  Planning, creating, and implementing any programs and projects of the authority that shall be assigned to the corporation, including federally-funded and state-funded programs, and projects and programs funded by other nonprofit and for-profit organizations;

     (3)  Identifying and obtaining funding and other resources in support of the purposes of the corporation from agencies and organizations not able to provide resources directly to the authority;

     (4)  Assisting the authority in the promotion and marketing of Hawaii as a location for research and commercial natural energy activity; and

     (5)  Assisting the authority in any other strategic or operational manner that supports the State's energy-based economic development activities.

     The corporation shall have the sole right to provide the foregoing services and support to the authority, and the authority shall use the corporation to provide these services and support except when the authority determines that the corporation may not or cannot legally or operationally provide these services and support.

     §227D‑    Board of directors; composition.  (a)  The affairs of the corporation shall be under the general management and control of a board of directors consisting of nine members.  Four members of the board of directors of the authority shall be ex officio, voting members of the corporation's board, selected by the authority's board of directors for terms to be determined by the authority's board of directors.  The chief executive officer of the authority shall serve as an ex officio, nonvoting member of the corporation's 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 who were selected on the basis of their knowledge, interest, and proven expertise in but not limited to one or more of the following fields:

     (1)  Finance;

     (2)  Commerce and trade;

     (3)  Corporate management;

     (4)  Marketing;

     (5)  Economics;

     (6)  Engineering;

     (7)  Energy management;

     (8)  Real estate development;

     (9)  Property management;

    (10)  Aquaculture;

    (11)  Ocean science;

    (12)  Life science; and

    (13)  Other natural energy fields.

All the members appointed from the general public shall serve for a term of four years, provided that half of those initially appointed from the public may have reduced terms 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.

     (b)  All members of the corporation's board shall serve without pay, but shall be entitled to reimbursement for necessary expenses, including travel expenses, while attending meetings and while in the discharge of their duties and responsibilities.

     (c)  The members of the corporation's board shall elect the chairperson of the board.

     §227D‑    Powers of the corporation.  The corporation, under the direction of its board of directors, shall have the following general powers and duties:

     (1)  To promote the use of alternative energy and natural resource sites for the purposes provided by law;

     (2)  To adopt, amend, and repeal bylaws governing the conduct of its business and the exercise of the powers and performance of duties granted to or imposed upon it by law;

     (3)  To acquire, own, lease, rent, hold, maintain and improve, use, and operate any property, including real, personal, or mixed property, whether tangible or intangible, in accordance with the conditions under which the property was received;

     (4)  To enter into and perform contracts, leases, cooperative agreements, or other transactions with the authority or any other agency or political subdivision of the State, any private person, firm, partnership, association, company, or corporation, as it may deem necessary in the conduct of its business and on terms as it may deem appropriate; provided that:

         (A)  The corporation shall not obligate any funds of the State except funds that have been appropriated to it by the legislature or transferred or contracted to it by the authority or other agency or department of state government;

         (B)  Notwithstanding subparagraph (A), the corporation may enter into and perform contracts, leases, cooperative agreements, or other transactions with any agency or instrumentality of the United States, a foreign nation, a state, a territory, or a possession, or with any political subdivision thereof, whenever the donating or granting agency or instrumentality determines that the natural energy laboratory of Hawaii authority or any other agency of the State cannot as effectively and efficiently accomplish the purposes for which the contracts, leases, cooperative agreements, or other transactions are being entered into; and provided further that the corporation shall not obligate any funds of the State except funds that have been appropriated or transferred or contracted to it; and

         (C)  The corporation shall not contract with the authority for the purposes of providing any services provided by employees of the authority, and the authority's services and employees shall remain under the jurisdiction of the authority;

     (5)  To receive from private sources, gifts, grants, devises, bequests, or otherwise of any property, including real, personal, or mixed property, whether tangible or intangible, held absolutely or in trust, the principal or income from which may be used and disposed of in accordance with the conditions under which the property was received; provided that no gift to the corporation shall be accepted unless approved or confirmed by its board of directors;

     (6)  The corporation may receive gifts, grants, or awards from any agency or instrumentality of the United States, a foreign nation, a state, a territory, or a possession, or from any political subdivision thereof, whenever the donating or granting agency or instrumentality determines that the authority or any other agency of the State cannot as effectively and efficiently accomplish the purposes for which the gifts, grants, or awards are being made; provided that no gift to the corporation shall be accepted unless approved or confirmed by its board of directors;

     (7)  To have a corporate seal and alter the same at its pleasure;

     (8)  To sue and be sued in its own name;

     (9)  To serve as trustee or beneficiary under terms of any gift, indenture, or will;

    (10)  To apply for, take out, receive by purchase or gift, hold, administer, and dispose of copyrights, patent rights, licenses, assignments of inventions, discoveries, processes, and other property, rights, or interests therein, and the income thereof, absolutely or subject to conditions or trusts as may be attached thereto or be imposed thereon, and to obligate itself to perform and execute any and all conditions or trusts;

    (11)  To conduct programs, projects, research, studies, experiments, investigations, and tests in all fields of knowledge to:

         (A)  Promote and develop the scientific and commercial value of inventions, discoveries, and processes; and

         (B)  Make, publish, and distribute the results thereof;

    (12)  To coordinate and correlate activities and projects of the corporation with the work of state agencies for the purpose of relating research work to the economic development of the State whenever practical or desirable;

    (13)  To stimulate and promote commercial, energy, aquaculture, and research projects and activities;

    (14)  To establish and maintain, or to assist in establishing and maintaining, staff positions for the purpose of aiding in energy-based economic development and to enter into agreements or contracts with other corporations, organizations, institutions, or persons for this purpose and to pay the necessary and appropriate expenses therefor;

    (15)  To prepare, print, or publish any manuscript, research article, report, study, discussion, reference, collection, or any pictorial or schematic representation or group or collection thereof, whether the same belongs to or is the work of any state agency or its employees, or the corporation or its employees, or a contractor of the authority.  The printing or publication may be accomplished through whatever person, company, or agency is deemed most appropriate by the corporation's board of directors; and

    (16)  To do any or all other acts reasonably necessary to carry out the objectives and purposes of the authority.

     §227D‑    Corporation; exempted from certain state laws.  To carry out the purposes and objectives of this part, the corporation shall be granted flexibility in hiring its personnel and in handling and disbursing moneys by being exempt from the following state laws:

     (1)  Sections 36‑27 and 36‑30, relating to transfers from special funds for central services expenses and special fund reimbursements for departmental administrative expenses;

     (2)  Chapter 40, related to public audit and accounting;

     (3)  Chapter 76, relating to civil service;

     (4)  Section 78‑1, relating to public employment; and

     (5)  Chapter 103D, relating to public procurement.

     Notwithstanding any other law to the contrary, the corporation shall be authorized to set up private accounts for depositing moneys received from either public or private contracts, or from private or public grants, awards, or gifts.  All disbursements shall be drawn on these accounts upon checks prepared and signed as approved by the president of the corporation or other person authorized by the board of directors of the corporation.

     §227D‑    Officers and employees of the corporation.  The chief executive officer of the authority shall serve as the president of the corporation.  The corporation's president, with the agreement of the corporation's board of directors, may also appoint other officers and employees as may be necessary in administering the affairs of the corporation.  The corporation's president, with the agreement of the corporation's board of directors, shall set the employees' duties, responsibilities, salaries, holidays, vacation, leave, hours of work, and working conditions, and may grant other benefits the president deems necessary.  Employees of the corporation shall not be entitled to any benefits conferred under chapter 76, 78, 88, 89, or any public employee collective bargaining agreement, executive order, executive directive, or rule.

     §227D‑    Annual report.  The corporation shall submit an annual report, not later than twenty days prior to the convening of each regular session, to the governor, the president of the senate, and the speaker of the house of representatives.  The report shall include but not be limited to the corporation's audited financial statement, total amount of payroll and other disbursements made, and progress and accomplishments made during the year.

     §227D‑    Dissolution.  If the corporation is dissolved, all of its property, including real, personal, and mixed property, wherever situated, shall vest immediately and absolutely in the authority, and none of its property shall inure to the benefit of any officer, director, or member of the corporation.

     §227D‑    Meetings of the board of directors.  The meetings of the corporation's board of directors 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:

     (1)  Is proprietary to a particular enterprise seeking entry into or the use of one of the corporation's facilities; and

     (2)  Might be harmful to the business interest of the enterprise if disclosed,

the board may enter into an executive meeting that is closed to the public; provided that the executive meeting shall be limited to discussion or consideration of trade secrets or confidential or proprietary commercial or financial information to the extent that the trade secrets or information fall within the exception to public disclosure under section 92F‑13.

     §227D‑    Confidentiality of information.  Any government record made or received by any member or employee of the corporation shall be subject to segregation and kept confidential to the extent permitted under chapter 92F; provided that the information:

     (1)  Consists of business trade secrets; or

     (2)  Consists of confidential or proprietary commercial or financial information regarding the operation of any business.

     §227D‑   Patents, copyrights, and other rights.  Any patents, copyrights, inventions, discoveries, or other rights arising from corporation activities shall belong to the corporation and be subject to policies or rules as the corporation's board of directors may adopt pursuant to chapter 91.

     §227D‑    Contracts with state agencies.  Any contract between the corporation and any agency, office, department, or other administrative subdivision of the executive branch of the State shall include the following:

     (1)  The contract's termination date;

     (2)  The contract's intent and purpose;

     (3)  A statement establishing the full permissible extent of the contract's applicability; and

     (4)  A description of the circumstances under which the contract may be amended or extended."

     SECTION 3.  Section 26-18, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The following are placed in the department of business, economic development, and tourism for administrative purposes as defined by section 26-35:  Aloha Tower development corporation, Hawaii community development authority, high technology development corporation, land use commission, natural energy laboratory of Hawaii authority, natural energy laboratory of Hawaii authority innovation corporation, and any other boards and commissions as shall be provided by law.

     The department of business, economic development, and tourism shall be empowered to establish, modify, or abolish statistical boundaries for cities, towns, or villages in the State and shall publish, as expeditiously as possible, an up-to-date list of cities, towns, and villages after changes to statistical boundaries have been made."

     SECTION 4.  Chapter 227D, Hawaii Revised Statutes, is amended by designating sections 227D‑1 to 227D‑9 as part I and inserting a title before section 227D‑1 to read as follows:

     "PART I.  GENERAL AND ADMINISTRATIVE PROVISIONS".

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon approval.

 

INTRODUCED BY:

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