Bill Text: HI SB765 | 2018 | Regular Session | Amended
Bill Title: Relating To New Market Tax Credits.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Engrossed - Dead) 2018-03-21 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Ing, C. Lee, McKelvey, Souki, Todd, Ward excused (6). [SB765 Detail]
Download: Hawaii-2018-SB765-Amended.html
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THE SENATE |
S.B. NO. |
765 |
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TWENTY-NINTH LEGISLATURE, 2017 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO NEW MARKET TAX CREDITS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the business community, nonprofit organizations, and other entrepreneurs require a functional, service-oriented agency that is readily available to provide business counseling, financial backing, and general support to foster real community-based economic development for the various products and services demonstrating and embracing Hawaii's diversified economy.
The Hawaii community-based economic development technical and financial assistance program in the department of business, economic development, and tourism, was established for this purpose. Chapter 210D, Hawaii Revised Statutes, provides for financial assistance to community-based businesses and enterprises through low-interest loans and grants to qualifying applicants.
There are various programs provided by the federal government, nonprofit organizations, and foundations, as well as opportunities provided by public-private partnerships that further these goals. These programs and partnerships can be used to provide a portion of the funding needed by economic development projects. The project funding provided by the State will be made more efficient and more effective if provided in the form most compatible with these programs and in the manner most suitable to optimize all sources of funding.
The purpose of this Act is to authorize the department of business, economic development and tourism to:
(1) Participate with qualified community development entities that serve or provide investment capital to low-income communities or individuals to pursue federal financing for community-based development through the federal new market tax credits program for private, for-profit investors; and
(2) Encourage the use of federal and private funds for economic development and use of state funds to leverage federal and private funding opportunities through the federal new market tax credits program.
SECTION 2. Section 210D-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:
""Qualified community development entity" has the same meaning as in section 45D(c)(1) of the Internal Revenue Code of 1986, as amended."
SECTION 3. Section 210D-8, Hawaii Revised Statutes, is amended to read as follows:
"§210D-8 Powers and duties. The department shall have the necessary powers to carry out the purposes of this chapter, including the following:
(1) With advice from
the council, prescribe the qualifications for eligibility of applicants for
loans and grants;
(2) With advice from the council, establish preferences and priorities in determining eligibility for financial assistance;
(3) Establish the conditions, consistent with the purpose of this chapter, for the awarding of financial assistance;
(4) Provide for inspection at reasonable hours of facilities, books, and records of a community-based organization that has applied for or has been awarded financial assistance and require the submission of progress and final reports;
(5) Provide loans and grants for community-based economic development activities and community-based enterprises for purposes consistent with this chapter;
(7) Encourage the use of federal and
private funds for economic development purposes and use of state resources as
applicable to leverage federal and private dollars through the federal new
market tax credits program to supplement state economic development efforts subject
to section 210D-11(7);
[(6)] (8) Determine the necessity for and the extent of
security required in a loan;
[(7)] (9) Prescribe and provide appropriate management
counseling and monitoring of business activities;
[(8)] (10) Administer the Hawaii community-based
economic development revolving fund;
[(9)] (11) Include in its budget for subsequent fiscal
periods amounts necessary to effectuate the purposes of this chapter;
[(10)] (12) Participate in loans made to qualified
persons by private lenders;
[(11)] (13) Establish interest rates chargeable by the
State for direct and participation loans; and
[(12)] (14) Adopt rules pursuant to chapter 91 to
implement this chapter."
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, 2050.
Report Title:
Economic Development; New Markets Tax Credits; Qualified Community Development Entity
Description:
Expands methods for the delivery of funding to projects under the Hawaii community-based economic development technical and financial assistance program by allowing the Department of Business, Economic Development, and Tourism to participate with qualified community development entities in the pursuit of federal financing opportunities and encourage the use of federal and private funds for economic development purposes and use State resources to leverage federal and private dollars to supplement State economic development efforts. (SB765 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
