Hawaii Consolidates Technology Programs, Adds Worker Training and Offers Tax Breaks

The technology advisor is to be appointed by the Governor and has nine responsibilities outlined in the legislation which include: developing a plan to reorganize and consolidate "all state high technology agencies;" providing technical assistance and advice to private high technology businesses; coordinating the state's promotion and marketing of high technology industry; and, encouraging the development of educational, training and career programs in high tech industries.

A Governor's special advisory council for technology development was also established to assist the new advisor. The council will consist of 11-25 members appointed by the Governor and will be representative of technology businesses, educators, government leaders, and legislators.

The Legislature appropriated $100,000 each year for the next two fiscal years for costs associated with activities of the technology advisor and council.

Other measures included in Act 178 are:

• Creating 10 percent tax credits of up to $500,000 for private investment in high technology businesses that do research within the state;

• Enacting a personal or business income tax credit for increased research activities;

• Exempting from capital gains or income taxation stock options from qualified high technology businesses conducting research in the state;

• Exempting individuals and Hawaii technology businesses from paying taxes on any royalties received from copyrights and patents;

• Integrating telecommunications services and technology related industries into the state's tourism and marketing promotional efforts;

• Exempting Hawaii-based Internet commerce from state taxation;

• Appropriating $4,000,000 from the University of Hawaii's (UH) discoveries and inventions revolving fund for the UH office of technology transfer and economic development to continue the program;

• Establishing a new Millenium Workforce Development Training Program in the Department of Labor and Industrial Relations to help workers in technology related industries such as biotechnology, health care, information technology, environmental science and technology, and telecommunications. For each of the next fiscal years, $50,000 is appropriated for the training program under the Department of Labor and an additional $436,200 is appropriated to the University of Hawaii;

• Offering free e-mail accounts to all students of the University of Hawaii, including among others students in non-degree programs, continuing education, and individuals attending on an "occasional basis" and,

• Establishing E AcademiesCvirtual, site-based schools providing industry and academic standards-based instruction and assessments in technology, science, math and engineeringC throughout the state at selected public high schools in each school district. The legislature appropriated $163,800 for the program for each of the next two fiscal years.

A copy of the bill may be downloaded from http://www.capitol.hawaii.gov/session1999/bills/sb1583_hd1_htm.