PART I

SECTION 1. The legislature finds that the development of an offshore high technology park is needed to promote research, education, and technological innovation. The park is also necessary to strengthen state critical infrastructure and to develop a knowledge-based workforce capable of leading new opportunities in several different sectors of the economy.

The legislature further finds that the implementation of a trans-Pacific broadband cable provides the necessary broadband connectivity to support an offshore high technology park. The State may facilitate the research and development opportunity for the deployment of a trans-Pacific cable through a partnership with multiple sectors in private industry that have a real interest in demonstrating the commercial applicability of new sensor technology and edge-processing analytics.

The legislature further finds that the development of the offshore high technology park and trans-Pacific broadband cable will integrate state-of-the-art communication platforms, unmanned aerial vehicles, and big data analytics revealing needs for broadband internet capabilities. In addition, the cascade of technology improvements to follow on other critical infrastructure needs, such as energy, water, sewer, and telecommunications, are essential to maintaining a vibrant and sustainable economy and providing ongoing improvements of residential quality of life. These various technologies may also be used for real-time visualization, monitoring, and analysis, and managers may monitor dozens of data feeds for information concerning weather, traffic, transportation systems, police, and medical services on a real-time basis. This system will be especially vital for protecting lives in rural areas as well. The offshore high technology park will use these sensing and analytical technologies to support a prototype suite of operational tools necessary to develop a joint emergency management center, and provide a space for the education and training to prepare the necessary workforce, including operational cyber ranges.

The legislature further finds that the double pressures of an increased population and commensurate residential development strain the capabilities of an aging infrastructure, resulting in heightened risk to the population and the State. Accordingly, there needs to be new way of thinking about how the State addresses its critical infrastructure needs.

Through the development of public-private partnerships specifically focused on research and development, Hawaii can address current vulnerabilities while building a technologically advanced, knowledge-based future workforce. The technological advancement applied to a critical infrastructure means an improvement in state reliability and security.

The legislature further finds that the optimal vehicle by which the State should address these risk concerns and goals of future development is though the establishment of the board of offshore high technology park review.

The purpose of this Act is to establish the offshore high technology park review board in the high technology development corporation and authorize the issuance of special purpose revenue bonds for the development of an offshore high technology park to provide broadband connectivity for research, education, and technological innovations necessary to strengthen critical infrastructure needs, develop a knowledge-based workforce, and diversify the economy.

SECTION 2. Chapter 206M, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . OFFSHORE HIGH TECHNOLOGY PARK

§206M-A Definitions. As used in this part, unless the context otherwise requires:

"Board" means the board of offshore high technology park review, established pursuant to section 206M-B.

"Development corporation" means the high technology development corporation established by section 206M-2.

§206M-B Board of offshore high technology park review; established. (a) There is established the board of offshore high technology park review, which shall be placed within the development corporation for administrative purposes only. The board shall consist of the following members to be appointed by the governor:

(1) One representative of the department of business, economic development, and tourism;

(2) One representative of Enterprise Honolulu; and

(3) One representative of the Pacific-Asia institute for resilience and sustainability.

(b) All board members shall be appointed in accordance with section 26-34. The terms of the members shall be four years. The board shall select one of its members to serve as chair and one of its members to serve as vice-chair. No member of the board shall receive any compensation for board services but shall be allowed necessary expenses for travel, board, and lodging incurred in the performance of board duties.

§206M-C Board duties. The board shall work in cooperation with the development corporation to:

(1) Develop standards for testing and establishing investments to deliver a trans-Pacific broadband cable to Hawaii;

(2) Establish relationships among public, private, and civil sectors to assist in developing new opportunities to diversify Hawaii's economy, and enter into cooperative agreements with coordinating entrepreneurs or public agencies that have the necessary and appropriate capabilities to implement research and development programs using big data analytics, cognitive and high-performance computing, and advanced network science principles for decision engineering;

(3) Implement an offshore high technology park that shall be used to:

(A) Establish a comprehensive strategy for securing investments to deliver a trans-Pacific broadband cable to Hawaii;

(B) Promote research and development opportunities to support the enhancement of critical infrastructure and emergency management needs; and

(C) Support the development of the next generation of knowledge-based workers in innovation and technological research and development focused on the strategic design of public service systems to provide a supportive environment for delivering a higher quality of life in Hawaii; and

(4) Establish relationships among public, private, and civil sectors to assist in developing the offshore high technology park with key agencies among civil, government, or academic institutions including:

(A) The department of defense;

(B) The department of public safety;

(D) The University of Hawaii; and

(E) The Pacific-Asia institute for resilience and sustainability."

SECTION 3. Section 206M-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the high technology development corporation, which shall be a public body corporate and politic and an instrumentality and agency of the State. The development corporation shall be placed within the department of business, economic development, and tourism for administrative purposes, pursuant to section 26-35. The purpose of the development corporation shall be to facilitate the growth and development of the commercial high technology industry in Hawaii. Its duties shall include[,] but not be limited to:

(1) Developing and encouraging industrial parks as high technology innovation centers and developing or assisting with the development of projects within or outside of industrial parks, including participating with the private sector in such development;

(2) Providing financial and other support and services to Hawaii-based high technology companies;

(3) Collecting and analyzing information on the state of commercial high technology activity in Hawaii;

(4) Promoting and marketing Hawaii as a site for commercial high technology activity; [~~and~~]

(5) Providing advice on policy and planning for technology-based economic development[.]; and

(6) Developing an offshore high technology park pursuant to section 206M-C."

PART II

SECTION 4. The legislature finds and declares that the issuance of special purpose revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.

SECTION 5. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $130,000,000, in one or more series, for the purpose of assisting the high technology development corporation, a Hawaii corporation, for the purpose of planning, permitting, designing, constructing, equipping, and operating an offshore, high technology park and the requisite cable landing sites throughout the State. The legislature hereby finds and determines that the planning, permitting, designing, constructing, equipping, and operating of an offshore high technology park and the requisite cable landing sites throughout the State constitute a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

SECTION 6. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

SECTION 7. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2020, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 5 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 5. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 8. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2020.

PART III

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2015.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	887
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII