Bill Text: HI HB1958 | 2018 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating To The Hawaii Technology Development Corporation.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Passed) 2018-07-05 - Act 068, 06/29/2018 (Gov. Msg. No. 1169). [HB1958 Detail]

Download: Hawaii-2018-HB1958-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

1958

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RElating to the Hawaii technology development corporation.

 

 

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

 


SECTION 1.  The legislature finds that the Hawaii small business innovation research program is the longest-running federal small business innovation research matching grant program in the United States.  The Hawaii small business innovation research program of the Hawaii technology development corporation has increased the competitiveness of small businesses in Hawaii, attracted additional federal dollars into the State, and helped Hawaii businesses to transform their research into innovative commercial products and services.  

The legislature further finds that in 2017, the Hawaii small business innovation research program awarded approximately $1,900,000 in matching grants to businesses that had received a federal small business innovation research phase II or III award or contract.  These matching grants helped to create an anticipated one hundred thirty-one new high-paying jobs in the State.

The legislature believes that continued funding for the Hawaii small business innovation research program will further help to develop Hawaii's technology sector.  Additionally, in light of the amendments made by Act 216, Session Laws of Hawaii 2015, that authorized the corporation to match phase II and III awards or contracts, the Hawaii technology development corporation should also be allowed to issue awards in the form of convertible debt loans, which will help to maximize the efficiency of the appropriated funds.

The purpose of this Act is to appropriate moneys to continue the small business innovation research program and to authorize the Hawaii technology development corporation to issue awards in the form of convertible note loans.

     SECTION 2.  Section 206M-15, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The development corporation shall adopt rules pursuant to chapter 91 that:

     (1)  Specify the qualifications for eligibility of grant applicants;

     (2)  Establish priorities in determining eligibility in the event that insufficient funds are available to fund otherwise qualified applicants; [and]

     (3)  Give preference to all qualified businesses receiving their first award in one fiscal year over multiple award grantees[.];

     (4)  Authorize the development corporation to award convertible note loans instead of grants to businesses in the State that:

          (A)  Receive a federal small business innovation research phase II or III award or contract from a participating federal agency; or

          (B)  Receive a federal small business technology transfer program phase II or III award or contract from any participating federal agency,

          in amounts no larger than fifty per cent of the amount of the federal award or contract;

     (5)  Establish criteria for the board to consider in deciding whether to award a convertible note loan instead of a grant; and

     (6)  Establish appropriate terms for convertible note loans.

The development corporation may adopt any other rules pursuant to chapter 91 necessary for the purposes of this section."

     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 2018-2019 for the small business innovation research program.

     The sum appropriated shall be expended by the Hawaii technology development corporation for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaii Technology Development Corporation; Small Business Research Grants; Appropriation

 

Description:

Authorizes HTDC to issue phase II and III awards in the form of convertible note loans.  Appropriates moneys.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

 

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