Report Title:

New Economy Transition (NET); Appropriation



Appropriates money for the New Economy Transition (NET) program; appropriates moneys to DBEDT; requires all infrastructure at all existing technology parks be completed before the governor may allocate funds for construction; appropriates GO bonds to extend the community-based economic development loan and grant program to info technology for distressed rural areas; creates a high technology task force to develop goals and an implementation plan to improve Hawaii's high technology industry; requires conversion of legislative documents and reports received by the legislature to electronic copy; requires administration to process bill payments electronically. (SD1)



S.B. NO.



S.D. 1






relating to technology.




SECTION 1. The legislature finds that the use of technology, particularly the Internet, is becoming businesses' best marketing tool and their greatest source of competition. The greatest risk for Hawaii businesses that do not participate in a technology-based economy is that they will be left behind.

While some businesses participate in the new economy and make use of system modernization and skills training, most businesses lack sufficient time and resources to learn about the information-technology revolution. As a result, these businesses are prevented from using technology to increase productivity, to work faster and more efficiently, to create a more flexible, less hierarchical style of doing business, and from being as competitive as they could be.

The legislature finds that the new economy transition (NET) program, a concept patterned after the agricultural extension programs, is available to help Hawaii businesses transition to the new economy and foster collaborative partnerships. The NET program serves as a conduit for technology education and advisory services, using many of the excellent resources offered by the State, the private sector, and other organizations. The result is a valuable partnership between business and government.

The greatest asset of the NET program is the outreach component, whereby a program technician, instead of a business, initiates the dialogue to identify the unique obstacles of the business and to determine the process to overcome those obstacles. Solutions include educational seminars on the benefits of applying technology to existing business processes, advisory services to develop planning and the implementation of technology business plans, a menu of training courses offered by qualified providers, interactive tools or a technology showcase, or simply distributing information materials.

Businesses benefit from the NET program because of a greater access to technology programs and sources of funding, increased productivity and efficiency, and the ability to compete both locally and globally. Government benefits from the NET program because of increased participation in the new economy, greater employment opportunities, higher tax revenue, increased global competitiveness, and a more highly skilled work force.

The purpose of this Part is to help Hawaii businesses transition to a technology-based economy by appropriating funds for the NET program that promotes the partnering of business and government.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $1, or so much thereof as may be necessary for fiscal year 2001-2002, and the sum of $1, or so much thereof as may be necessary for fiscal year 2002-2003, for the NET program.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.


SECTION 3. The legislature finds that today's technology allows us to dramatically cut administrative transaction costs and time.

The legislature shall require conversion from hard copy to electronic copy of all legislative documents and all reports received by the legislature from state agencies, including budget material, by the end of this year to reduce transactions in administration.

The administration shall process all bill payments electronically in order to encourage productivity and efficiency. Electronic bill payment shall be in full operation by January 1, 2002.


SECTION 4. The legislature finds that the State has established a number of technology parks throughout the islands. The Mililani technology enterprise center is located in the county of Honolulu. Maui county is the home of the Maui research and technology park. Hawaii county is the site of the Hawaii ocean science and technology park. The West Kauai technology center at Waimea is located in Kauai. In addition, the natural energy laboratory of Hawaii authority operates a research and technology park on the Big Island focusing on deep ocean water resources. The legislature finds that these existing technology parks, whatever their origins, are creating great benefit for the people of the State and should continue to be supported.

The legislature further finds that it is in the best interest of the State to complete infrastructure work on technology parks that have already been established before embarking on creating new technology parks, which will require additional appropriations. The purpose of this Act is to require that all infrastructure work be completed on existing technology parks in the State that are subject to legislative appropriations before moneys can be allocated for the construction of new technology parks.

SECTION 5. The governor shall not allocate any funds for the planning, design, acquisition, or construction of any new research or technology park in the State until the construction of all infrastructure has been completed at all existing research and technology parks in the State that are subject to legislative appropriations.

SECTION 6. This Act shall take effect upon its approval and shall be repealed upon the issuance of a written proclamation by the governor to the effect that construction of all infrastructure has been completed at all existing research and technology parks in the State that are subject to legislative appropriations.


SECTION 7. The director of finance is authorized to issue general obligation bonds in the sum of $          , or so much thereof as may be necessary, is appropriated for fiscal year 2001-2002 for the purpose of extending the community-based economic development loan and grant program to information technology for distressed rural areas.

SECTION 8. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2004, shall lapse as of that date.


SECTION 9. The legislature finds that Hawaii's high technology industry is growing. Hawaii based companies are venturing and succeeding in several areas of high technology including telecommunications, electronic commerce, networking infrastructure and hardware, software development, and biotechnology. The reach of high technology is beyond its industry. It also improves the efficiency and effectiveness of other industries in Hawaii as well.

Although there is progress in Hawaii's high technology industry, the legislature finds that focus and cohesiveness of the State's efforts to promote Hawaii's high technology industry is required to ensure long-lasting success. The purpose of this Act is to bring together industry, government, and educational leaders to develop clear goals and an implementation plan to further develop Hawaii's high technology industry.

SECTION 10. (a) There is created a joint legislative high technology task force. The task force shall:

(1) Establish short-term and long-term goals to develop Hawaii's high technology industry and market Hawaii as conducive to high technology enterprises; and

(2) Establish a specific implementation plan and timeline to accomplish the goals.

(b) By July 1, 2001, members of the task force shall be chosen by the respective chairs of the senate committee on economic development and technology and the house committee on economic development and business concerns. The task force shall consist of at least one representative from each of the following groups: high technology trade organizations, business organizations, high technology legal professionals, high technology educational institutions, University of Hawaii, department of business and economic development, department of commerce and consumer affairs, and Hawaii, Honolulu, Kauai, and Maui counties.

(c) The high technology task force shall submit a report of findings and recommendations, including recommended legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2002.

SECTION 11. This Act shall take effect upon its approval; provided that sections 2, 7, and 8 shall take effect on July 1, 2001.