Bill Text: HI SB757 | 2011 | Regular Session | Amended

Hawaii Senate Bill 757 (Prior Session Legislation)

Bill Title: Small Business; Hawaii Capital Loan Revolving Fund; Appropriation

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Engrossed - Dead) 2011-03-23 - (H) Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting no (0) and Belatti, Chang, Tokioka excused (3). [SB757 Detail]

Download: Hawaii-2011-SB757-Amended.html

THE SENATE	S.B. NO.	757
TWENTY-SIXTH LEGISLATURE, 2011		S.D. 2
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

RELATING TO SMALL BUSINESS.

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

SECTION 1. The legislature finds that as the national and state economies struggle to regain momentum, businesses face a continuing shortage of capital. This is a problem for small businesses in particular, as even under optimum economic conditions, they do not have the same financial resources available in the form of loans or other funding options.

In 2010, the senate committee on economic development and technology and the house committee on economic revitalization, business, and military affairs convened an informal small business discussion group to address the most critical issues facing the small business sectors within Hawaii's economy. Representatives from the Chamber of Commerce of Hawaii, construction and trades industries, community nonprofits, the agricultural sector, food and restaurant industries, retailing, the science and technology sector, the commercial transportation industry, and interested stakeholders developed a package of bills that address the most pressing problems facing Hawaii's small business community.

The purpose of this Act is to support the findings of the small business working group and recommendations to assist Hawaii's small business concerns by:

(1) Reestablishing the Hawaii capital loan revolving fund, with principal and interest payments made on any outstanding loans to be directed into the fund to lower or eliminate the need for future general fund appropriations;

(2) Authorizing the department of business, economic development, and tourism to contract with any financial institution for services including servicing or administering loans; and

(3) Appropriating moneys to the Hawaii capital loan revolving fund for operations of the Hawaii capital loan program.

SECTION 2. Chapter 210, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§210‑ Hawaii capital loan revolving fund. There is established the Hawaii capital loan revolving fund into which shall be deposited all moneys appropriated by the legislature and received as repayment of loans and interest payments as provided in this chapter. The department may use a portion of the moneys contained in the Hawaii capital loan revolving fund for programs associated with administering the fund and its mandated purpose.

The department may contract with any financial institution for services including servicing or administering loans pursuant to 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 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for deposit into the Hawaii capital loan revolving fund under section 210- , Hawaii Revised Statutes.

SECTION 4. There is appropriated out of the Hawaii capital loan revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 and the same sum or so much thereof as may be necessary for fiscal year 2012-2013 for the operations of the Hawaii capital loan program.

The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2112.

Report Title:

Small Business; Hawaii Capital Loan Revolving Fund; Appropriation

Description:

Reestablishes the Hawaii Capital Loan Revolving Fund; requires that principal and interest payments being made on outstanding loans be deposited into the fund; authorizes the Department of Business, Economic Development, and Tourism to contract with financial institutions for servicing or administering loans; appropriates funds for the operations of the Hawaii Capital Loan Program. Effective July 1, 2112. (SB757 HD1)

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