§206M-3  Powers, generally.  (a)  The development corporation shall have all the powers necessary to carry out its purposes, including the powers to:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at its pleasure;

     (3)  Make and execute, enter into, amend, supplement, and carry out contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter, including, with the approval of the governor, a project agreement, or an amendment or supplement to an existing project agreement, with a qualified person, and to enter into and carry out any agreement whereby the obligations of a qualified person under a project agreement shall be unconditionally guaranteed or insured by, or the performance thereof assigned to, or guaranteed or insured by, a person or persons other than the qualified person; and extend or renew any project agreement or any other agreement related thereto; provided that any such renewal or extension shall be subject to the approval of the governor unless made in accordance with provisions for the extension or renewal contained in a project agreement or related agreement theretofore approved by the governor;

     (4)  Make and alter bylaws for its organization and internal management;

     (5)  Adopt rules under chapter 91 necessary to effectuate this chapter in connection with economic zones, projects, multi-project programs, and the operations, properties, and facilities of the corporation;

     (6)  Through its chief executive officer, appoint officers, agents, consultants, advisors, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;

     (7)  Prepare or cause to be prepared development plans for economic zones;

     (8)  Acquire, own, lease, hold, clear, improve, and rehabilitate real, personal, or mixed property and assign, exchange, transfer, convey, lease, sublease, or encumber any project, including by way of easements;

     (9)  Acquire, construct, improve, install, equip, or develop or provide for the acquisition, construction, improvement, installation, equipping, or development of any project and designate a qualified person as its agent for such purpose;

    (10)  Own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any project;

    (11)  Arrange or initiate appropriate action for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, easements, or other places, the furnishing of improvements, the acquisition of property or property rights, or the furnishing of property or services in connection with an economic zone or project;

    (12)  Prepare, or cause to be prepared, plans, specifications, designs, and estimates of cost for the acquisition, construction, reconstruction, improvement, installation, equipping, development, or maintenance of any project or economic zone, and from time to time modify the plans, specifications, designs, or estimates;

    (13)  Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (14)  Procure insurance against any loss in connection with its property and other assets and operations in amounts and from insurers as it deems desirable;

    (15)  Issue special purpose revenue bonds and refunding special purpose revenue bonds pursuant to and in accordance with this chapter in principal amounts as may be authorized from time to time by law to finance or refinance the cost of a project, singly or as part of a multi-project program, or an economic zone as authorized by law and provide for the security thereof as permitted by this chapter;

    (16)  Lend or otherwise apply the proceeds of the bonds issued for a project or an economic zone either directly or through a trustee to a qualified person for use and application by the qualified person in the acquisition, construction, improvement, installation, equipping, or development of a project or economic zone, or agree with the qualified person whereby any of these activities shall be undertaken or supervised by that qualified person or by a person designated by the qualified person;

    (17)  As security for the payment of the principal of, premium, if any, and interest of the special purpose revenue bonds issued for a project to:

          (A)  Pledge, assign, hypothecate, or otherwise encumber all or any part of the revenues and receipts derived or to be derived by the development corporation under the project agreement for the project for which the bonds are issued;

          (B)  Pledge and assign the interest and rights of the development corporation under the project agreement or other agreement with respect to the project or the special purpose revenue bonds;

          (C)  Pledge and assign any bond, debenture, note, or other evidence of indebtedness received by the development corporation with respect to the project; or

          (D)  Any combination of the foregoing;

    (18)  With or without terminating a project agreement, exercise any and all rights provided by law for entry and reentry upon or take possession of a project at any time or from time to time upon breach or default by a qualified person under a project agreement, including any action at law or in equity for the purpose of effecting its rights of entry or reentry or obtaining possession of the project or for the payments of rentals, user taxes, or charges, or any other sum due and payable by the qualified person to the development corporation pursuant to the project agreement;

    (19)  Enter into arrangements with qualified county development entities whereby the board would provide financial support to qualified projects proposed;

    (20)  Create an environment in which to support technology economic development, including but not limited to:

          (A)  Supporting all aspects of technology-based economic development;

          (B)  Developing instructive programs, identifying issues and impediments to the growth of technology industry in Hawaii; and

          (C)  Providing policy analysis and information important to the development of technology industries in Hawaii;

    (21)  Develop programs that support start-up and existing technology companies in Hawaii and attract new companies to relocate to or establish operations in Hawaii by assessing the needs of these companies and providing the physical and technical infrastructure to support their operations;

    (22)  Coordinate its efforts with other public and private agencies involved in stimulating technology-based economic development in Hawaii, including but not limited to:

          (A)  The department of business, economic development, and tourism;

          (B)  The Pacific international center for high technology research;

          (C)  The office of technology transfer and economic development of the University of Hawaii; and

          (D)  The state energy office;

    (23)  Promote and market Hawaii as a site for commercial technology activity, including the expenditure of funds for protocol purposes at the discretion of the board;

    (24)  Provide advice on policy and planning for technology-based economic development;

    (25)  Finance, conduct, or cooperate in financing or conducting technological, business, financial, or other investigations that are related to or likely to lead to business, technology, and economic development by making and entering into contracts and other appropriate arrangements, including the provision of loans, start-up and expansion capital, loan guaranty, loans convertible to equity, equity charged and received by the corporation, and other forms of assistance;

    (26)  Solicit, study, and assist in the preparation of business plans and proposals of new or established businesses;

    (27)  Provide advice, technical and marketing assistance, support, and promotion to enterprises in which investments have been made;

    (28)  Acquire, hold, and sell qualified securities;

    (29)  Consent, subject to the provisions of any contract with noteholders or bondholders, whenever the corporation deems it necessary or desirable in the fulfillment of the purposes of this chapter, to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, or any other terms, of any contract or agreement of any kind to which the corporation is a party;

    (30)  Invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in such investments as may be lawful for fiduciaries in the State;

    (31)  Coordinate the development corporation's programs with any education and training program;

    (32)  Carry out specialized programs designed to encourage the development of new products, businesses, and markets;

    (33)  Prepare, publish, and distribute such technical studies, reports, bulletins, and other materials as it deems appropriate, subject only to the maintenance and respect for confidentiality of client proprietary information;

    (34)  Organize, conduct, sponsor, or cooperate in and assist in the conduct of conferences, demonstrations, and studies relating to the stimulation and formation of businesses;

    (35)  Provide and pay for such advisory services and technical, managerial, and marketing assistance, support, and promotion as may be necessary or desirable to carry out the purposes of this chapter;

    (36)  Accept donations, grants, bequests, and devises of money, property, service, or other things of value that may be received from the United States or any agency thereof, any governmental agency, or any public or private institution, person, firm, or corporation, to be held, used, or applied for any or all of the purposes specified in this chapter.  Receipt of each donation or grant shall be detailed in the annual report of the development corporation.  The report shall include the identity of the donor or lender, the nature of the transaction, and any conditions attaching thereto;

    (37)  Acquire real property, or an interest therein, by purchase or foreclosure, where that acquisition is necessary or appropriate to protect or secure any investment or loan in which the development corporation has an interest; sell, transfer, and convey the property to a buyer and if the sale, transfer, or conveyance cannot be effected with reasonable promptness or at a reasonable price, to lease the property to a tenant;

    (38)  Acquire, own, hold, dispose of, and encumber personal property of any nature, or any interest therein;

    (39)  Enter into agreements or other transactions with any federal, state, or county agency;

    (40)  Appear on its own behalf before state, county, or federal agencies;

    (41)  Appoint advisory committees as deemed necessary;

    (42)  Exercise any other powers of a corporation organized under the laws of the State; and

    (43)  Do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this chapter.

     (b)  The corporation shall be exempt from chapter 102. [L 1983, c 152, pt of §2; am L 1989, c 274, §3; am L 1991, c 288, §2; am L 2000, c 72, §7, c 253, §150, and c 297, §27; am L 2004, c 216, §27; am L 2017, c 69, §5; am L 2019, c 56, §8; am L 2022, c 55, §2]


Revision Note


  Paragraphs (12) and (16) to (32) redesignated pursuant to §23G‑15.