HB1230

SECTION 1. The purpose of this Act is to establish the Hawaii space corporation.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

HAWAII SPACE CORPORATION

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Board of directors" means the board of directors of the Hawaii space corporation.

"Complex" means the Hawaii space complex.

"Corporation" means the Hawaii space corporation.

§ -2 Hawaii space corporation; established. There is established the Hawaii space corporation as a public body corporate and politic and an instrumentality and agency of the State. The corporation shall be placed within the department of business, economic development, and tourism for administrative purposes.

§ -3 Board of directors of the Hawaii space corporation; powers; duties. (a) The corporation shall be headed by the board of directors of the Hawaii space corporation. The board shall consist of nine members; provided that:

(1) The members shall be appointed by the governor as provided in section 26-34, except as provided by this section;

(2) One member shall be the director of business, economic development, and tourism, or the director's designee, who shall be an ex officio voting member;

(3) One member shall be the executive director of the Pacific international space center for exploration systems, who shall be an ex officio voting member; and

(4) At least one member shall be a resident of the county in which the Hawaii space complex located.

The seven, non-ex officio members shall be selected on the basis of their knowledge, experience, and expertise in science, engineering, finance, commerce, trade, corporate management, marketing, law, or economics.

(b) The board shall elect its chairperson from among its members; provided that the chairperson shall not be an ex‑officio member.

(c) A majority of all members shall constitute a quorum to do business. Concurrence of a majority of the members present at a meeting shall be necessary to make any action of a board valid.

(d) The members shall serve without compensation, but shall be reimbursed for actual expenses incurred in the performance of their duties.

(e) The board shall appoint an executive director, who shall serve at the pleasure of the board and shall be exempt from chapter 76. The salary of the executive director shall be set by the board.

(f) The board shall develop and document annual goals and performance measures for the executive director that allow the board to annually evaluate the executive director's work to ensure compliance by the corporation with statutory requirements and achievement of its statutory purposes.

(g) The board shall document the specific authority delegated to the executive director, including but not limited to the types of access and use of corporation property that the executive director may approve without notice to or approval by the board, and the rent credits and other amendments to board‑approved contract terms that the executive director may approve without notice to or approval by the board.

(h) The board, through its executive director, may appoint officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, without regard to chapter 76.

§ -4 Conflict of interest; members, employees. (a) If a public official, member, officer, agent, or employees of the corporation owns or controls, or owned or controlled within the preceding two years, a direct or an indirect interest in property known to be included or planned to be included in a corporation activity, that individual shall disclose this fact immediately in writing to the board and the disclosure shall be entered in the board's minutes.

(b) An individual of the corporation having an interest in property under this section shall not participate in an action by the corporation affecting that property.

§ -5 Hawaii space corporation; powers; duties. (a) The corporation shall leverage the State's geographic, rocketry, manufacturing and higher education assets and capabilities to establish the State as a national and international industry destination and an authority in launching small launch vehicles and small satellites into polar orbit by:

(1) Acquiring and managing properties within the State to develop and operate the Hawaii space complex and its ancillary facilities;

(2) Facilitating the acquisition of permits for launch sites from the United States for the purpose of hosting launch providers;

(3) Facilitating the creation of a skilled workforce. The corporation shall work closely with the university of Hawaii, the department of education, and organizations in the State to ensure education, training, and recruitment programs are in place for the primary purpose of ensuring the availability of a highly workforce;

(4) Enhancing science, technology, engineering, and mathematics education and engagement in kindergarten to grade twelve and higher education curricula through partnerships with private industry to explore use cases for satellite data;

(5) Serving as a place to engage and inspire the public through programming;

(6) Attracting out-of-state businesses, business visitors, and tourists to the State; and

(7) Creating new revenue and expanding the tax base of the State as an international asset.

(b) The corporation may:

(1) Sue and be sued;

(2) Charge and collect fees, charges and rents for the use of the complex's properties and other services and use the proceeds of those fees, charges and rents for the purposes provided in this chapter;

(3) Contract with any entity or individual to carry out the purposes of this chapter;

(4) Issue bonds for the purpose of providing funds for any of its corporate purposes;

(5) Adopt rules pursuant to chapter 91 for purposes of this chapter; and

(6) Take all other lawful action necessary and incidental to these powers.

§ -6 Hawaii space complex; established. (a) The corporation shall establish a spaceport to be known as the Hawaii space complex.

(b) The complex shall serve as a staging and launch site for launching objects into space.

(c) The complex shall allocate the use of its staging and launch sites in a manner that prioritizes Hawaii-based businesses and businesses that minimize the environmental effects of launches.

(d) The corporation shall restrict the complex to commercial, research, and educational uses.

§ -7 Space corporation special fund. (a) There is established the space corporation special fund, into which shall be deposited:

(1) Appropriations made by the legislature to the fund;

(2) All contributions from public or private partners;

(3) All interest earned on or accrued to moneys deposited in the special fund; and

(4) Any other moneys made available to the special fund from other sources.

(b) Moneys in the special fund shall be expended by the corporation for the operation, maintenance, and management of the complex and its facilities, and for the design and construction of new facilities and the renovation of or addition to existing facilities.

§ -8 Annual report. The corporation shall submit a report on its activities to the legislature at least twenty days prior to the convening of each regular legislative session. The annual report shall include:

(1) A description of the corporation's operations;

(2) An accounting of the corporation's receipts and expenditures, assets and liabilities at the end of its fiscal year;

(3) A listing of all property transactions during the previous fiscal year;

(4) An accounting of all activities related to the fund;

(5) A listing of any bonds issued during the previous fiscal year;

(6) A statement of the corporation's proposed and projected activities for the next five fiscal years; and

(7) Recommendations regarding further actions that may be suitable for achieving the purposes of this chapter."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for deposit into the space corporation special fund.

SECTION 4. There is appropriated out of the space corporation special fund the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for establishment of the Hawaii space corporation.

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

SECTION 5. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1230
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII