REPORT TITLE:
University Park, UH Hilo


DESCRIPTION:
Establishes a high technology research park at the research park
of the University of Hawaii at Hilo, and provides incentives to
encourage high technology businesses, including biotechnology
businesses, to locate their operations in the high technology
research park.  (HB1683 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1683
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HIGH TECHNOLOGY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that it is in the public
 
 2 interest to support high technology development in the State.  As
 
 3 one of the fastest growing industries in the nation, a viable and
 
 4 stable high technology industry would help to diversify the
 
 5 economy, bring new business into the State, and provide high
 
 6 quality jobs and job opportunities in the State.
 
 7      An area of high technology which could provide Hawaii with
 
 8 additional diversification is biotechnology.  Development of
 
 9 biotechnology in tropical agriculture, aquaculture, and forestry
 
10 would provide much-needed research for these integral parts of
 
11 Hawaii's agricultural industries.
 
12      The legislature further finds that the research park at the
 
13 University of Hawaii at Hilo (UHH) currently houses the base
 
14 facilities for many of the observatories on Mauna Kea.  In
 
15 addition, the University of Hawaii Institute for Astronomy and
 
16 the Smithsonian Institute are each currently building base
 
17 facilities.  This area is perfect for UHH to encourage further
 
18 development of the research park with more digital and analog
 
19 electronics for data gathering and analysis, for controlling
 

 
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 1 instruments, and for high-speed communications.  Image enhancing
 
 2 and processing can also be developed as well as the storage of
 
 3 large amounts of imaging data both on-line and off-line.
 
 4      In addition, the research park also houses the agriculture
 
 5 extension service for the UH college of tropical agriculture and
 
 6 human resources.  The U.S. Tropical Forest Research Lab is
 
 7 planning to build a facility in the park, as is the U.S.
 
 8 Department of Agriculture.  With these facilities and labs in
 
 9 full operation, hundreds of agriculture researchers will be on-
 
10 site researching tropical agriculture and tropical forestry.
 
11      The purpose of this Act is to demonstrate Hawaii's
 
12 commitment to strengthening the development of its high
 
13 technology industry by:
 
14      (1)  Establishing a high technology research park at the
 
15           research park of UHH; and
 
16      (2)  Providing incentives to encourage high technology
 
17           businesses, including biotechnology businesses, to
 
18           locate their operations in the high technology park.
 
19      SECTION 2.  Chapter 206E, Hawaii Revised Statutes, is
 
20 amended by adding a new part to be appropriately designated and
 
21 to read as follows:
 

 
 
 
 
 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1             "PART   .  HIGH TECHNOLOGY RESEARCH PARK
 
 2      206E-    Definitions.  As used in this part, unless the
 
 3 context otherwise requires:
 
 4      "High technology" means emerging industries which are
 
 5 technology intensive, including but not limited to electronics
 
 6 and biotechnology.
 
 7      "High technology research park" means a research park that
 
 8 has been developed to accommodate and support high technology
 
 9 activities at the research park at the University of Hawaii at
 
10 Hilo.
 
11      206E-  High technology research park; established.  The
 
12 authority shall establish a high technology research park to
 
13 develop and sustain Hawaii's high technology industry.
 
14      206E-  State income tax exemption.  The director of
 
15 taxation shall certify that a qualified high technology business
 
16 in the high technology research park is exempt from the payment
 
17 of income taxes on the income received by the qualified high
 
18 technology business for a five-year period.  The director,
 
19 however, shall not certify any qualified technology business for
 
20 a five-year period if the first taxable year begins after
 
21 December 31, 2004.
 
22      206E-  State general excise tax exemption.  (a)  The
 
23 director of taxation shall certify that a qualified technology
 

 
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 1 business in the high technology research park is exempt from the
 
 2 payment of general excise taxes on the gross income or gross
 
 3 proceeds received by the qualified high technology business for a
 
 4 five-year period.  The director, however, shall not certify any
 
 5 qualified high technology business for a five-year period if the
 
 6 first taxable year begins after December 31, 2004.
 
 7      (b)  The gross income or gross proceeds received by a
 
 8 contractor shall be exempt from the general excise tax for
 
 9 construction within the high technology research park for a
 
10 qualified high technology business that has been certified by the
 
11 director."
 
12      SECTION 3.  Section 206E-4, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "206E-4 Powers; generally.  Except as otherwise limited by
 
15 this chapter, the authority may:
 
16      (1)  Sue and be sued;
 
17      (2)  Have a seal and alter the same at pleasure;
 
18      (3)  Make and execute contracts and all other instruments
 
19           necessary or convenient for the exercise of its powers
 
20           and functions under this chapter;
 
21      (4)  Make and alter bylaws for its organization and internal
 
22           management;
 

 
 
 
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 1      (5)  Make rules with respect to its projects, operations,
 
 2           properties, and facilities, which rules shall be in
 
 3           conformance with chapter 91;
 
 4      (6)  Through its executive director appoint officers,
 
 5           agents, and employees, prescribe their duties and
 
 6           qualifications, and fix their salaries, without regard
 
 7           to chapters 76 and 77;
 
 8      (7)  Prepare or cause to be prepared a community development
 
 9           plan for all designated community development
 
10           districts;
 
11      (8)  Acquire, reacquire, or contract to acquire or reacquire
 
12           by grant or purchase real, personal, or mixed property
 
13           or any interest therein; to own, hold, clear, improve,
 
14           and rehabilitate, and to sell, assign, exchange,
 
15           transfer, convey, lease, or otherwise dispose of or
 
16           encumber the same;
 
17      (9)  Acquire or reacquire by condemnation real, personal, or
 
18           mixed property or any interest therein for public
 
19           facilities, including but not limited to streets,
 
20           sidewalks, parks, schools, and other public
 
21           improvements;
 
22     (10)  By itself, or in partnership with qualified persons,
 
23           acquire, reacquire, construct, reconstruct,
 
24           rehabilitate, improve, alter, or repair or provide for
 

 
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 1           the construction, reconstruction, improvement,
 
 2           alteration, or repair of any project; own, hold, sell,
 
 3           assign, transfer, convey, exchange, lease, or otherwise
 
 4           dispose of or encumber any project, and in the case of
 
 5           the sale of any project, accept a purchase money
 
 6           mortgage in connection therewith; and repurchase or
 
 7           otherwise acquire any project which the authority has
 
 8           theretofore sold or otherwise conveyed, transferred, or
 
 9           disposed of;
 
10     (11)  Arrange or contract for the planning, replanning,
 
11           opening, grading, or closing of streets, roads,
 
12           roadways, alleys, or other places, or for the
 
13           furnishing of facilities or for the acquisition of
 
14           property or property rights or for the furnishing of
 
15           property or services in connection with a project;
 
16     (12)  Grant options to purchase any project or to renew any
 
17           lease entered into by it in connection with any of its
 
18           projects, on such terms and conditions as it deems
 
19           advisable;
 
20     (13)  Prepare or cause to be prepared plans, specifications,
 
21           designs, and estimates of costs for the construction,
 
22           reconstruction, rehabilitation, improvement,
 
23           alteration, or repair of any project, and from time to
 

 
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 1           time to modify such plans, specifications, designs, or
 
 2           estimates;
 
 3     (14)  Provide advisory, consultative, training, and
 
 4           educational services, technical assistance, and advice
 
 5           to any person, partnership, or corporation, either
 
 6           public or private, in order to carry out the purposes
 
 7           of this chapter, and engage the services of consultants
 
 8           on a contractual basis for rendering professional and
 
 9           technical assistance and advice;
 
10     (15)  Procure insurance against any loss in connection with
 
11           its property and other assets and operations in such
 
12           amounts and from such insurers as it deems desirable;
 
13     (16)  Contract for and accept gifts or grants in any form
 
14           from any public agency or from any other source;
 
15     (17)  Do any and all things necessary to carry out its
 
16           purposes and exercise the powers given and granted in
 
17           this chapter;
 
18     (18)  Allow satisfaction of any affordable housing
 
19           requirements imposed by the authority upon any proposed
 
20           development project through the construction of
 
21           reserved housing, as defined in section 206E-101, by a
 
22           person on land located outside the geographic
 
23           boundaries of the authority's jurisdiction.  Such
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1           substituted housing shall be located on the same island
 
 2           as the development project and shall be substantially
 
 3           equal in value to the required reserved housing units
 
 4           that were to be developed on site.  The authority shall
 
 5           establish the following priority in the development of
 
 6           reserved housing:
 
 7           (A)  Within the community development district;
 
 8           (B)  Within areas immediately surrounding the community
 
 9                development district;
 
10           (C)  Areas within the central urban core; and
 
11           (D)  In outlying areas within the same island as the
 
12                development project.
 
13           The Hawaii community development authority shall adopt
 
14           rules relating to the approval of reserved housing that
 
15           are developed outside of a community development
 
16           district.  The rules shall include[,] but are not
 
17           limited to[,] the establishment of guidelines to ensure
 
18           compliance with the above priorities; [and]
 
19     (19)  Render technical and administrative services as
 
20           necessary to assist the Barbers Point Naval Air Station
 
21           redevelopment commission as the local redevelopment
 
22           authority in the development of the Kalaeloa community
 
23           development district[.]; and
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1     (20)  Render technical and administrative services as
 
 2           necessary to assist the University of Hawaii at Hilo in
 
 3           developing the high technology research park to
 
 4           encourage high technology business, including
 
 5           biotechnology business, to the area."
 
 6     SECTION 4.  Statutory material to be repealed is bracketed.
 
 7 New statutory material is underscored.
 
 8     SECTION 5.  This Act, upon its approval, shall apply to
 
 9 taxable years beginning after December 31, 1999, and before
 
10 January 1, 2009.