Bill Text: HI SB2817 | 2016 | Regular Session | Introduced

Hawaii Senate Bill 2817 (Prior Session Legislation)

Introduced

Bill Title: Hawaii Strategic Development Corporation; HI Growth Initiative

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-27 - Referred to EET, WAM. [SB2817 Detail]

Download: Hawaii-2016-SB2817-Introduced.html

THE SENATE	S.B. NO.	2817
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HI GROWTH INITIATIVE.

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

SECTION 1. The legislature finds that the State has a public interest in identifying new engines of economic growth that create high-wage jobs. Ensuring that Hawaii residents have access to increased and diversified opportunities for high-wage employment contributes to improved living standards for all our citizens. This important economic policy objective was formalized in 2014 in Act 133 that amended the state economic policy objectives to include the promotion of innovation and entrepreneurship within Hawaii in order to transform our State into a place that welcomes and facilitates innovative activity.

The State, through the HI Growth Initiative, has supported the establishment of an innovation ecosystem that promotes the development of high-growth entrepreneurial businesses. This public private investment program, based on best practices that have proven effective in other states, has gained traction and is beginning to see success. From virtually nothing four years ago, the innovation ecosystem today includes six startup accelerators � three of which have received national recognition from the United States Small Business Administration and one ranked number seventeen nationally � five Hawaii-based venture capital funds, coworking spaces, business incubation, commercialization programs and a full calendar of events and programming geared toward developing more entrepreneurs. Hawaii now ranks twelfth in the nation on the Kauffman Foundation's analysis of startup growth, just below New York and above California.

Hawaii's business community has identified innovation as a sector that would greatly benefit from increased investment. A recent report sponsored by the Hawaii Business Roundtable noted that the innovation sector today makes up 7.3 per cent of the economy and called for continued efforts to grow this sector. Innovation sector workers earn higher than average wages and economic research indicates that these jobs generate greater demand for other jobs in the economy. A report sponsored by the Oahu Economic Development Board provided specific recommendations to advance Hawaii's economic transformation, including a call for dedicated funding streams for initiatives that contribute to the infrastructure, talent development and capital needs of the innovation ecosystem. The Chamber of Commerce of Hawaii has called for additional resources to address the need for increased mentoring, business development, and private-public capital to support new businesses.

The purpose of this Act is to provide the funding and coordination necessary to implement the recommendation of the governor to establish Hawaii as the innovation center of the Pacific. This Act provides an appropriation to the Hawaii strategic development corporation to continue programs under the HI Growth Initiative that support entrepreneurial development, fill financing gaps and build out our innovation ecosystem. Maintaining the continuity and momentum of current efforts is essential to fully developing this new growth sector for the long term.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding to part IV a new section to be appropriately designated and to read as follows:

"§235- Disposition of taxes. Of the taxes deposited to the state general fund pursuant to section 235-119 each fiscal year beginning July 1, 2016, and ending June 30, 2021, the first $5,000,000 shall be transferred into the Hawaii strategic development corporation revolving fund established pursuant to section 211F-5."

SECTION 3. New statutory material is underscored.

Section 4. This Act, upon its approval, shall take effect on July 1, 2016.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Hawaii Strategic Development Corporation; HI Growth Initiative

Description:

Allocates $5,000,000 of the Corporation Income Tax collected each year for five year to the Hawaii Strategic Development Corporation Revolving Fund for the HI Growth Initiative, an investment program to develop an ecosystem to support high-growth entrepreneurial companies in the State. Effective July 1, 2016.

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