Hawaii Legislature Passes Several Innovation Measures

While legislators did not agree to all of Gov. Linda Lingle’s Innovation Initiative – including a $100 million innovation fund - some of the governor’s original concepts emerged from several other bills at the close of the 2007 legislative session last week.

 

The legislature passed a number of measures to promote science, technology, engineering and math (STEM) education, a major priority in the governor’s innovation package. SB 885 establishes the Career and Technical Education program within the state Department of Education and provides $5 million over the biennium for several technical education initiatives. Among those are Gov. Lingle’s proposals for the Hawaii Excellence through Science and Technology (HiEST) Academy Pilot Program and a Fostering Inspiration and Relevance through Science and Technology (FIRST) Pre-Academy Program.

 

Under HB 1630, Project EAST (environmental and spatial technology via experiential learning) will be maintained in existing schools and expanded to schools statewide. Project EAST incorporates cutting-edge technology into school curriculum in order to prepare students for high technology-based careers. Additional acts that incorporate portions of the governor’s original innovation package include:

• HB 1083 establishes a $5 million R&D follow-on funding program for small businesses that received federal funding in the fields of science and engineering to develop and commercialize defense-related dual-use technology. Funds will be distributed by the Hawaii Strategic Development Corporation.
• SB 907 renames the Office of Space Industry to the Office of Space Development and provides $500,000 to identify and promote opportunities for expanding and diversifying aerospace-related industries in the state.
• HB 1003 creates the Hawaii Natural Energy Institute at the University of Hawaii and a special fund to develop renewable energy and energy efficient technologies.
• HB 226 creates a task force on reduction of greenhouse gas emissions and requires emissions to be cut to 1990 levels by the year 2020.

Gov. Lingle introduced the Innovation Initiative during her State of the State Address earlier this year. Her proposal included the creation of a $100 million fund using money from the State Employees Retirement System (ERS) for several key innovation initiatives (see the Jan. 22 issue of the Digest). SB 1365 originally included the $100 million allocation and funding for the University of Hawaii Office of Tech Transfer and Economic Development. However, the funding portion was dropped from the final bill, and instead, the bill requires the ERS board to develop criteria for future allocation of local innovation investments. 

 

Gov. Lingle introduced similar legislation last session under the Innovation Special Fund, which was tabled by session’s end (See the May 8, 2006 issue of the Digest).  

 

An act passed by the legislature that requires high-technology businesses with investors claiming the High Technology Business Investment Tax Credit to publicly disclose their business name and status is still being considered by Gov. Lingle. The goal of HB 1631 is to measure the effectiveness of the tax credits so lawmakers can better evaluate whether they should remain in place beyond the expiration date of 2010. According to the bill’s language, accurate information with respect to the efficiency of the credit is lacking. The state Department of Taxation would annually report information regarding investment, employment, job creation, wage, revenue and expense to the legislature. Gov. Lingle has until July 10 to sign the measure.

 

The fiscal year 2007-09 biennial budget includes $4.8 million annually in state funds for the High Technology Development Corporation (HTDC). In addition, SB 896 appropriates $150,000 in FY 2007-08 and $250,000 the following year for HTDC to create commercial wet lab space located within a life sciences research complex near the University of Hawaii Medical Center.



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