H.B. NO.



















     SECTION 1.  The legislature finds that to be successful in the twenty-first century global economy, Hawaii must position itself as a leader in science and technology.  Innovation in the science and technology fields will not only allow the State to succeed in the global marketplace, but will also support the State's sustainable development goals.  The legislature also finds that this will require a commitment to the development of a highly capable workforce that is able to compete in a technological environment.

     The legislature further finds that developing such a workforce will require a combined effort on the part of state and community sectors to improve communication between government, private, and academic entities; to develop networks capable of sustained collaboration; and to prepare today's students to be tomorrow's leaders.

     The purpose of this Act is to establish the Hawaii island technology exchange institute at the University of Hawaii at Hilo through a collaboration between the University of Hawaii at Hilo and Hawaii community college to focus the State's efforts to achieve these goals.

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new subpart to part IV to be appropriately designated and to read as follows:


     §304A-    Hawaii island technology exchange institute; establishment.  (a)  There is established the Hawaii island technology exchange institute.  The institute shall be placed within the University of Hawaii at Hilo through a collaboration between the University of Hawaii at Hilo and Hawaii community college for administrative purposes; provided that the institute may incorporate as a nonprofit corporation to further its objectives.

     (b)  The purposes of the institute shall be to:

     (1)  Develop systemic models that will create new values regarding science, technology, and innovation, and prepare Hawaii's post-secondary students to advance the State's welfare and prosperity in the future;

     (2)  Prepare a highly capable workforce that is able to support and sustain a high technology society and economy;

     (3)  Generate scientific and technological innovation through the development of formal and informal networks between academia and private industry within the United States and other nations;

     (4)  Support the economic development and community improvement activities of personnel and organizations who are able to advance and deploy science and technology while enhancing community and communication networks between the public and science- and technology-related professionals and institutions;

     (5)  Advance and deploy science and technology for sustainable development in the State; and

     (6)  Play a leadership role in the State's science and technology sector within both the State and a global society.

     (c)  The qualifying standards and conditions related to the receipt of funds under chapter 42F shall not apply to funds received by the institute; provided that if the institute contracts with a recipient or provider, the qualifying standards, conditions, and other provisions of chapter 42F shall apply to the recipient or provider and the contract.

     (d)  If the institute incorporates, to receive state funds, the institute shall:

     (1)  Be licensed or accredited in accordance with federal, state, or county laws, rules, or ordinances to conduct the activities or provide the services for which the funds are appropriated;

     (2)  Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or other protected class;

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

     (4)  Be incorporated pursuant to chapter 414D;

     (5)  Have been determined and designated to be a tax-exempt organization by the Internal Revenue Service;

     (6)  Maintain bylaws or policies that describe the manner in which the activities or services for which a grant or subsidy is awarded shall be conducted or provided; and

     (7)  Include only members on the governing board, if the institute becomes incorporated, who have no material conflict of interest and who shall serve without compensation.

     (e)  The institute shall seek, receive, and accept from public and private sources, whether located within or without the United States, grants, gifts, devises, bequests, or any other money or property, real, personal, or mixed, tangible or intangible, absolutely or in trust, to be used in carrying out the purposes of the institute.

     (f)  The institute may enter into purchase of power agreements.

     (g)  The institute may execute its duties under the purchase of power agreements throughout the affected tax map key areas.

     (h)  The comptroller and state auditor may examine the institute's use of state funds.

     §304A-    Patents, copyrights, and other rights.  Any patents, copyrights, inventions, discoveries, or other rights arising from activities of the institute shall belong to the institute and shall be subject to such policies or rules as the board of regents may adopt.

     §304A-    Annual report.  The Hawaii island technology exchange institute shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session.  The report shall include an explanation of facility maintenance and other functions and activities undertaken with state funds in the previous fiscal year."

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








Report Title:

UH Hilo; Hawaii Community College; Technology Exchange Institute



Establishes the Hawaii island technology exchange institute administratively attached to University of Hawaii at Hilo through a collaboration between UH Hilo and Hawaii Community College.




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