GOV.MSG.NO. 2..
EXECUTIVE CHAMBERS
HONOLULU
DAVID Y. IGE
GOVERNOR
July 20, 2021
The Honorable Ronald D. Kouchi, The Honorable Scott K. Saiki,
President Speaker and Members of the
and Members of the Senate House of Representatives
Thirty-First State Legislature Thirty-First State Legislature
State Capitol, Room 409 State Capitol, Room 431
Honolulu, Hawai’i 96813 Honolulu, Hawai’i 96813
Dear President Kouchi, Speaker Saiki, and Members of the Legislature:
This is to inform you that on July 20, 2021, pursuant to Section 16 of Article Ill of the
Constitution of the State of Hawai’i, the following bill was found to have met my
objections and has been signed into law:
SB589 SD2 HD2 CD1 AD1 RELATING TO THE UNIVERSITY OF HAWAII.
ACT 8 (Special Session 2021)
Sincerely,
DAVID Y. IGE
Governor, State of Hawai’i
 Approved by tr~e (~overnor
JUL 2 0 2021 ACT 8
THE SENATE ,.‘~ r~ i~. i ~ 589
THIRTY-FIRST LEGISLATURE, 2021 ~ Ii IN Li S.D. 2
STATE OF HAWAII H.D.2
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V ABILLFQRANACT
RELATING TO THE UNIVERSITY OF HAWAII.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 PARTI
2 SECTION 1. The legislature finds that the University of
3 Hawaii cancer center reduces the burden of cancer through
4 research, education, patient care, and community outreach. The
5 University of Hawaii cancer center is the only National Cancer
.6 Institute-designated cancer center in Hawaii and the Pacific
7 region. The University of Hawaii cancer center is a member of
$ the Hawaii Cancer Consortium, which includes five hospital
9 groups and the University of Hawaii John A. Burns school of
10 medicine.
11 The University of Hawaii John A. Burns school of medicine
12 educates and trains health care professionals, including
13 physicians, biomedical scientists, and allied health workers.
14 The University of Hawaii John A. Burns school of medicine also
15 conducts fundamental medical research and translates discoveries
16 into delivery practices. Because the University of Hawaii John
17 A. Burns school of medicine is a community-based medical school
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1 without its own university hospital, it partners with private
2 hospitals in the community to achieve its educational mission.
3 The legislature further finds that public funds and other
4 resources the State has made available to the University of
5 Hawaii John A. Burns school of medicine and University of Hawaii
6 cancer center have been substantial. •The magnitude of state
7 funds and other resources provided to the University of Hawaii,
8 the distinction of the University being the sole public
9 institution of higher education in the State, and the University
10 of Hawaii cancer center being the only National Cancer
11 Institute-designated cancer center in Hawaii underscore the
12 importance of establishing complementary strategic priorities
13 and coordinating the management and deployment of state
14 resources appropriated to the University of Hawaii John A. Burns
15 school of medicine and University of Hawaii cancer center.
16 It is in the public’s interest that State resources be
17 efficiently and effectively managed to optimize the public
18 benefits. Just as co-locating the physical facilities for the
19 University of Hawaii John A. Burns school of medicine and
20 University of Hawaii cancer center on adjoining sites in Kakaako
21 promotes synergistic efforts, the legislature determines that it
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1 is a statewide concern to ensure that the management of public
2 resources provided to the University of Hawaii John A. Burns
3 school of medicine and University of Hawaii cancer center be
4 integrated, coordinated, and focused on common priorities to
5 avoid unnecessary duplication of administrative expenses or
6 conflicting priorities. Maximized efficiencies will benefit the
7 University of Hawaii cancer center, University of Hawaii John A.
8 Burns school of medicine, University of Hawaii at Manoa, and the
9 State by reducing or eliminating unnecessary expenditures and
10 optimizing operations.
11 Accordingly, the purpose of this part is to:
12 (1) Establish the University of Hawaii cancer center in
13 statute as the cancer research center of Hawaii; and
14 (2) Require the cancer research center of Hawaii to be
15 administratively affiliated with the University of
16 Hawaii John A. Burns school of medicine and possibly
17 merge the administrative services and infrastructure
18 teams of both entities to offer greater efficiency.
19 SECTION 2. Chapter 304A, part IV, Hawaii Revised Statutes,
20 is amended by adding a new subpart to be appropriately
21 designated and to read as follows:
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1 . Cancer Research Center of Hawaii
2 §304A- Cancer research center of Hawaii. (a) There is
3 established an organized research unit, hereinafter known as the
4 cancer research center of Hawaii, to conduct cancer research.
5 The cancer research center of Hawaii shall be administered by a
6 director to be appointed in accordance with board of regents
7 policy.
8 (b) The cancer research center of Hawaii shall be
9 administratively affiliated with the University of Hawaii John
10 A. Burns school of medicine. The administrative services and
11 infrastructure teams of the cancer research center of Hawaii and
12 the University of Hawaii John A. Burns school of medicine may be
13 merged to achieve greater efficiency.
14 Cc) The provost of the University of Hawaii at Manoa shall
15 have authority to direct and achieve efficiencies at the
16 University of Hawaii John A. Burns school of medicine and cancer
17 research center of Hawaii.
18 (d) The programs of the University of Hawaii John A. Burns
19 school of medicine and cancer research center of Hawaii, and the
20 University of Hawaii at Manoa shall identify opportunities to:
21 (1) Capitalize on collaboration between the programs; and
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1 (2) Maximize operational efficiencies between the
2 University of Hawaii John A. Burns school of medicine
3 and cancer research center of Hawaii,
4 including but not limited to shared services and personnel
5 whenever feasible and utilization of centralized services
6 available through the University of Hawaii at Manoa whenever
7 appropriate.
8 (e) The cancer research center of Hawaii’s research agenda
9 shall focus on research, education, patient care, and community
10 outreach and reflect an understanding of the ethnic, cultural,
11 and environmental characteristics of the State and the Pacific
12 region.
13 (f) The cancer research center of Hawaii may:
14 (1) Engage in international research collaborations;
15 (2) Undertake research studies and clinical trials; and
16 (3) Participate in projects and programs of the National
17 Cancer Institute.”
18 PART II
19 SECTION 3. The purpose of this part is to further efforts
20 to ensure the efficient and effective management of public
21 resources provided to the University of Hawaii John A. Burns
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1 school of medicine and cancer research center of Hawaii to
2 optimize public benefits.
3 SECTION 4. (a) The University of Hawaii shall develop and
4 implement a plan for the University of Hawaii John A. Burns
5 school of medicine and cancer research center of Hawaii to
6 achieve greater operational efficiencies, reduce duplication of
7 services, and share administrative functions to the maximum
8 extent practicable.
9 (b) The president of the University of Hawaii shall submit
10 a report on the progress of the development and implementation
11 of the plan as provided under this part to the legislature no
12 later than twenty days prior to the convening of the regular
13 session of 2023.
14 PART III
15 SECTION 5. The purpose of this part is to allow the
16 University of Hawaii to continue its contribution to research
17 commercialization and economic development by extending the
18 sunset date of Act 38, Session Laws of Hawaii 2017, for two
19 years, until June 30, 2024, while promoting accountability and
20 transparency.
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1 SECTION 6. Section 84-10, Hawaii Revised Statutes, is
2 amended to read as follows:
3 “t+)~84-1O[}] University of Hawaii; technology transfer
4 activities; exemption. (a) Sections 84-12, 84-13, 84-14 to
5 84-16, and 84-18 shall not apply to technology transfer
6 activities sponsored by the University of Hawaii; provided that
7 the technology transfer activities comply with the regulatory
8 framework and research compliance program and policies approved
9 by the board of regents of the University of Hawaii C board of
10 rcgcnts].
11 (b) Notwithstanding subsection (a), the University of
12 Hawaii shall not sponsor, enter into, or continue to engage in
13 technology transfer activities with a private person in which an
14 employee of the University of Hawaii has a conflict of interest
15 as provided in section 84-14, including a financial interest,
16 irrespective of whether the State benefits from the technology
17. transfer activities; provided that the prohibition under this
18 subsection shall not apply if:
19 (1) The technology transfer activities with the private
20 person promote the timely and efficient
21 coirirnercialization of intellectual property created by
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1 basic and applied research at the University of
2 Hawaii;
3 (2) The State stands to benefit from the technology
4 transfer activities with the private person;
5 (3) The technology transfer activities with the private
6 person comply with the regulatory framework and
7 research compliance program and policies approved by
8 the board of regents of the University of Hawaii;
9 (4) The employe&s conflict of interest is disclosed at
10 the time of the proposal, and the proposals and
11 binding agreements for each of the technology transfer
12 activities with the private person are reviewed by the
13 state ethics commission to assure compliance with
14 ethics laws;
15 (5) Any changes to the terms and conditions of the
16 technology transfer activities are reported to the
17 state ethics commission;
18 (6) The employee with the conflict of interest does not:
19 (A) Take official action affecting the technology
20 transfer activities with the private person; or
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1 (B) Directly or indirectly supervise an employee when
2 that employee takes official action affecting the
3 technology transfer activities with the private
4 person; and
5 (7) During the term of the technology transfer activities
6 with the private person, the following employees file
7 annually with the state ethics commission a disclosure
8 of financial interests pursuant to section 84-17:
9 (A) Employees who have a conflict of interest as
10 provided in section 84-14, including a financial
11 interest, in the private person;
12 (B) Employees who take official action affecting the
13 technology transfer activities with the private
14 person; and
15 (C) Employees who directly or indirectly supervise an
16 employee who takes official action affecting the
17 technology transfer activities with the private
18 person.
19 (c) Notwithstanding subsection (a), any technology
20 transfer activities sponsored by, entered into, or engaged in by
21 the University of Hawaii in violation of subsection (b) is
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1 voidable under section 84-16; provided that this subsection
2 shall not apply to contracts for technology transfer activities
3 entered into or extended by the University of Hawaii prior to
4 January 1, 2022.
5 (d) The University of Hawaii shall file annually with the
6 state ethics commission a disclosure, including its conflict of
7 interest management plan, of any conflict of interest of any
8 employee relating to its technology transfer activities.
9 [-(-~-)-J (e) As used in this section[, “tcchnology]:
10 “Person” means any individual, firm, association,
11 organization, sole proprietorship, partnership, company,
12 corporation, joint venture, trust, or any other form of business
13 or legal entity or group of individuals.
14 “Technology transfer activities” means the process of
15 transferring scientific findings from the public sector to the
16 private sector for the purpose of commercial development and
17 application for personal or financial gain. “Technology
18 transfer activities” may include creating joint ventures,
19 limited partnerships, or other corporate forms; allocating
20 equity shares, partnership interests, or other forms of
21 participation; identifying new technologies; protecting
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1 technologies through patents and copyrights; forming development
2 and commercialization strategies, arrangements, or projects; and
3 other related activities.”
4 SECTION 7. Section 304A-121, Hawaii Revised Statutes, is
5 amended to read as follows:
6 “[-E-]~3O4A-121[+] Technology transfer; reporting. The
7 board of regents of the University of Hawaii shall submit a
8 written report to the legislature no later than twenty days
9 prior to the convening of each regular session regarding:
10 (1) The development [e~8], implementation, and enforcement
11