A Hard ACT to Follow

The Hawaii State Government supported the Hawaii technology industry for decades starting with the creation of the Department of Business, Economic Development and Tourism in 1963. Over the years the state enhanced the University of Hawaii, built innovation centers, developed programs and provided capital and investment tax credits.

One of the centers with potential to stimulate the economy was created under Act 152 SLH 1983. The Hawaii Software Service Center was established to foster and sustain Hawaii’s software industry. A few of the center’s many goals are:

• Publish and maintain a catalog of packaged software products produced in the State,
• Act as the coordinator between the public, private and non-profit sectors in the State to analyze, articulate, and implement actions, solutions, and the programs that are necessary to support the continued growth of the software industry;
• Produce a plan for establishing a center for excellence in software development in Hawaii.

Here’s a snapshot of the tech-related legislation enacted since Statehood:

ACT 84 SLH 2008
Report Title: University of Hawaii; Cancer Research Center of Hawaii
Description: Increases the sources of revenue available to support the Cancer Research Center of Hawaii.  Allows moneys in cancer research special fund to be used for capital expenditures.

ACT 162 SLH 2008
Report Title: UH; Hawai’i Institute of Marine Biology; Appropriation
Description: Extends the lapse date of the funds provided for the planning, design, and construction of a modern laboratory and office complex on Coconut Island. (SB2482 SD2)

Hawaii Innovation Council June 2007
A new council has been formed to advise Gov. Linda Lingle on ways to improve Hawaii’s innovation potential. The Hawaii Innovation Council will be a 15-member advisory group that will work with state, federal, county and private groups to increase the economic impact of Hawaii’s innovation resources, including technology research and development.

Act 148 SLH 2007
Report Title: Measurement Criteria; Economic Development Benchmarks
Description: Requires the department of business, economic development, and tourism to investigate, collect, analyze, and publish research and data to track economic progress and aid in the development and economic health of growth industries. Appropriates funds for additional resources, including two permanent full-time equivalent economist positions in the department of business, economic development, and tourism to improve the State’s ability to measure progress toward achieving innovation in Hawaii’s economy, and to assess the effectiveness of measures enacted by the legislature to improve Hawaii’s economic situation.

Act 149 SLH 2007
Report Title: Office of Aerospace Development
Description: Renames the office of space industry, the office ofaerospace development, and adds additional duties relating to identifying and promoting opportunities for expanding and diversifying aerospace-related industries in the State. Appropriates funds.

Act 150 SLH 2007
Report Title: High Technology; Incubation Center; Kakaako
Description: Appropriates funds in FY 2007-2008 and FY 2008?2009 to the High Technology Development Corporation to negotiate a ten-year lease to house a technology incubator and innovation center in a life sciences research complex in Kakaako and for planning, development, and operational costs of the center. Requires an annual progress report to the Legislature beginning in 2008.

Act 195 SLH 2007
Report Title: High Technology Innovation Corporation; In-state and Out-of-State Bank Accounts
Description: Clarifies that the high technology innovation corporation is authorized to operate bank accounts that are necessary for the conduct of its business at both in-state and out-of-state bank locations.

Act 260 SLH 2007
Report Title: Innovation Economy; Employees’ Retirement System
Description: Requires the employees’ retirement system to report annually to the legislature on any Hawaii venture capital investments; provided that if the board determines it is not prudent to invest in any Hawaii venture capital the board shall report the rationale for the decision; requires the board to develop criteria to determine the
amount of funds that may be prudently invested in Hawaii private placement investments.

Act 267 SLH 2007
Report Title: High Technology; Incubation Center; R&D Funding Program
Description: Establishes a research and development follow-on funding program for Hawaii?based small businesses that received federal funding through the Hawaii Technology Development Venture or the National Defense Center of Excellence for Research in Ocean Sciences and appropriates $5,000,000 for the program.

Act 2 SLH 1SS 2007
Report Title: Hawaii Broadband Task Force
Description: Establishes a Hawaii Broadband Task Force to remove barriers to broadband access, including gaining wider access to public rights-of-way; identify opportunities for increased broadband deployment and adoption, including very high speed broadband services; and enable the creation and deployment of new advanced communication technologies in Hawaii. Appropriates $50,000 for the task force. (HB310 CD2)

Act 88 SLH 2006
Report Title: Digital Media; Tax Credit
Description: Temporarily replaces the motion picture and film production tax credit with the motion picture, digital media, and film production tax credit which provides an income tax credit amounting to 15% of qualified production costs incurred, in any county of Hawaii with a population over 700,000, and 20% in any county of Hawaii with a
population under 700,000. Establishes criteria to qualify for the tax credit. Caps credit at $8,000,000 per production.

Act 240 SLH 2006
Report Title: Energy Self-sufficiency
Description: Provides a framework for energy self-sufficiency, focusing on: increasing renewable energy tax credits; establishing a pay as you save program for solar water heating systems; establishing a bio-diesel preference in the state procurement law; establishing a Hawaii renewable hydrogen program and hydrogen investment capital special fund; and establishing state support for an alternate fuels standard.

Act 255 SLH 2006
Report Title: International Business and Technology Incubators; Appropriation
Description: Appropriates funds to create an international business and technology incubator program in Hawaii. Effective July 1, 2006.

Act 282 SLH 2006
Report Title: High Technology Development Corporation
Description: Authorizes the High Technology Development Corporation to provide grants to certain local businesses that receive or apply for federal research grants or awards. Authorizes HTIC to establish out-of-state bank accounts. Exempts HTIC from chapter 36, HRS, and chapter 38, HRS. Appropriates funds to HTDC for certain research and technology programs.

Economic Momentum Commission June 2005
Hawaii’s 30-member Economic Momentum Commission (EMC) was formed in June 2005 with a goal of prolonging the state’s current economic vitality.

Act 173 SLH 2005
Report Title: High Technology; Nonprofit Corporation; Established
Description: Establishes the High Technology Innovation Corporation, a nonprofit corporation attached to the High Technology Development Corporation, to assist in attracting high technology development opportunities to the State.

Act 180 SLH 2005
Report Title: Agricultural Research and Market Development; Appropriation
Description: Appropriates $500,000 for the Hawaii Farm Bureau Federation to conduct agricultural research and market development.

Act 130 SLH 2004
Report Title: High Technology Development Corporation; SPRB
Description: Authorizes the issuance of $100 million in special purpose revenue bonds by the HTDC to assist Townsend Capital, LLC, to finance a wet lab space and a biotech incubator.

Act 215 SLH 2004
Report Title: Capital Investment; State Private Investment Fund
Description: Establishes state private investment fund (SPIF); provides tax credits for qualifying research activities; technology infrastructure renovations; high technology business investments; repeals sunset of the Hawaii strategic development corporation revolving fund.

Act 223 SLH 2004
Report Title: Agricultural Research and Market Development; Appropriation
Description: Appropriates funds to the Hawaii Farm Bureau Federation for agricultural research and market development. Appropriates funds to the College of Tropical Agriculture and Human Resources at the University of Hawaii for its various research programs and to help diversify Hawaii’s economy.

Act 174 SLH 2003
Report Title: Cancer Detection; Revolving Fund
Description: Creates a revolving fund for developing and assisting the development of healthcare and biomedical technology to detect cancer, including cervical cancer, in its early stages.

Act 221 SLH 2001
Report Title: Taxes; High Tech Amendments
Description: Adds new tax benefits for high tech industries and amends current benefits to improve them.

Act 283 SLH 2001
Report Title: Hydrogen Private-Public Partnership
Description: Establishes a hydrogen private-public partnership within the Department of Business, Economic Development, and Tourism, with assistance from the Hawaii natural energy institute of the University of Hawaii; $200,000 appropriation from special land and development fund with matching requirement

Act 297 SLH 2000
Report Title: New Economy
Description: I. Qualified High Tech Business; II. To allow the board of trustees of the employees’ retirement system to invest in Hawaii high technoloyg businesses or venture capital investments; III. Funds University of Hawaii programs, expands the department of education’s E Academy and funds HTDC marketing and promotions; more.

Act 178 SLH 1999
Report Title: Technology Omnibus
Description: Consolidates high tech agencies under a special adviser for technology development; creates tax credits for investment in technology business; prohibits the imposition of discriminatory taxes on Internet commerce; and provides other incentives for Hawaii high tech companies.

Act 106 SLH1990
UH Software Development and Marketing Program

Act 110 SLH1990
Part I: Hawaii Strategic Development Corporation (HSDC)
- Hawaii Strategic Development Corporation Revolving Fund
- Cancer Detection Development Revolving Fund
- Hydrogen Investment Capital Special Fund
Part II: Program for Seed Capital Assistance
Part III: Program for Venture Capital Assistance
Part IV: Program for Capital Access
Part V: Hawaii Technology Investment Program

Act 224 SLH 1990
NELHA reauthorized

Discoveries and Inventions Fund SLH 1988
Commercialize UH research and development in new technology
Chapter 304-8.92 (b), Hawaii Revised Statutes. $2.75 million

Discoveries and Inventions Revolving Fund (Act 40, SLH 1988)
The Board of Regents formally approved the establishment of the Office of
Technology Transfer and Economic Development in April 1989

1988
Software Engineering Center ICS $587,000
Manoa Innovation Center $6.9 million
New SOEST building $20 million

Act 1 SLH 1988
Hawaii Information Network Corp

Act 335 SLH 1988
Establishes Office of Space Industry

Act 152 SLH 1983
Pacific International Center for High Technology Research (PICHTR)

Act 152 SLH 1983
Part I: High Technology Development Corporation (HTDC)
- High technology research and development loans and grants
- High Technology special fund
- Hawaii Technology loan revolving fund
Part II: Hawaii Software Service Center
- The center shall provide support to foster and sustain Hawaii’s
software industry.
Part III: Special Facility Revenue Bonds
Part IV: High Technology Innovation Corporation

Act 213 SLH1979
Natural Energy Laboratory of Hawaii Authority (NELHA)

Act 209 SLH 1965
Research Corporation of the University of Hawaii

Act 2 SLH1963
Establish Department of Business, Economic Development and Tourism

Statehood, August 21, 1959