Bill Text: HI SB1001 | 2015 | Regular Session | Amended
Bill Title: Manufacturing; Income Tax Credit; Appropriation ($)
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Passed) 2015-07-08 - Act 215, 07/07/2015 (Gov. Msg. No. 1316). [SB1001 Detail]
Download: Hawaii-2015-SB1001-Amended.html
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THE SENATE |
S.B. NO. |
1001 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MANUFACTURING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is a disparity between Oahu and the neighbor islands concerning the opportunities that exist for business expansion, energy efficiency training and development, and general maintenance of highly complex manufacturing equipment. The lack of available resources and qualified businesses and overuse of obsolete equipment have contributed to significantly barring future market competitiveness of Hawaii businesses and foreign investment interest in the State and businesses located across the islands.
The legislature further finds that it is incumbent on the State to ease the financial burdens facing particular businesses and to ensure the long-term financial and economic sustainability of the State.
The purpose of this Act is to establish the Hawaii manufacturing capital program that shall be administered by the high technology development corporation to encourage Hawaii-based companies to:
(1) Purchase manufacturing equipment;
(2) Implement training programs for employees on the proper and safe methods of operating relevant manufacturing equipment;
(3) Improve business practices involving use of existing manufacturing equipment or purchase of improved energy efficiency equipment involved in the manufacturing process; or
(4) Study or plan the implementation of a new manufacturing facility.
SECTION 2. Chapter 206M, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:
"§206M‑A Hawaii manufacturing capital program; established. There is established the Hawaii manufacturing capital program, to be administered by the development corporation through a program administrator, to provide loans to Hawaii-based companies that encourage:
(1) Purchasing of manufacturing equipment;
(2) Training programs for employees on the proper and safe methods of operating relevant manufacturing equipment;
(3) Improving business practices involving use of existing manufacturing equipment or purchase of improved energy efficiency equipment involved in the manufacturing process; or
(4) Studying or planning the implementation of a new manufacturing facility.
provided that no loan shall exceed twenty per cent of the cost of any of the above items, and no company shall receive a loan exceeding $100,000 in any given year.
§206M-B Hawaii manufacturing capital revolving fund; annual report. (a) There is established the Hawaii manufacturing capital revolving fund, into which shall be deposited all moneys received as repayment of loans and interest payments as provided pursuant to this section and all legislative appropriations into the revolving fund. The development corporation may expend moneys from the Hawaii manufacturing capital revolving fund to administer the Hawaii manufacturing capital program.
(b) The development corporation shall report to the legislature, no later than twenty days prior to the convening of the regular session every year, the following items:
(1) The full business name, the date of the business's establishment, and the number of employees of the business at the time the loan was provided;
(2) The type of business sectors provided with loans;
(3) The amount of each loan provided;
(4) The total projected economic and employment growth facilitated within businesses provided with loans;
(5) The actual economic and employment growth that occurred in all businesses as a result of the loans provided; and
(6) The actual economic and financial growth of each business for five years past the end date of any loan received under this section.
§206M‑C Hawaii manufacturing capital program; loan terms and conditions; repayment. (a) Loans shall be made to qualified applicants under the following terms and conditions:
(1) The maximum term and repayment period of a loan shall not exceed the term commensurate with standard business practices of the sector of the business provided with a loan;
(2) Each loan shall be for an amount commensurate with the project cost as based on the standard business practices of the sector of the business provided with a loan; and
(3) Each loan shall bear the annual interest rate that is commensurate with the sector of the business provided with a loan.
(b) The commencement date for repayment of the first installment on principal and interest of each loan may be deferred by the director of business, economic development, and tourism for a period not to exceed two years from the date of issuance of the loan."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for deposit into the Hawaii manufacturing capital revolving fund.
SECTION 4. There is appropriated out of the Hawaii manufacturing capital revolving fund the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the establishment and operation of the Hawaii manufacturing capital program, including personnel costs.
The sums appropriated shall be expended by the high technology development corporation for the purposes of this Act.
SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 6. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2015.
Report Title:
Manufacturing; High Technology Development Corporation; Revolving Fund; Appropriation
Description:
Establishes the Hawaii manufacturing capital program and revolving fund. Appropriates funds to the Hawaii manufacturing capital revolving fund. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
