Bill Text: HI HB1069 | 2015 | Regular Session | Amended
Bill Title: Small Business Innovation Research Awards; Technology; Appropriation ($)
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Passed) 2015-07-08 - Act 216, 07/07/2015 (Gov. Msg. No. 1317). [HB1069 Detail]
Download: Hawaii-2015-HB1069-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1069 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO TECHNOLOGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that the Hawaii small business innovation research program has successfully helped many Hawaii businesses win coveted federal funding through the federal small business innovation research program and has also helped many small businesses further develop their intellectual property. However, while successful, the current statute only authorizes the Hawaii small business innovation research program to provide grants for phase I (startup) awardees, and not those in phase II (prototyping) or phase III (commercialization). This hinders local businesses from fully commercializing their research and limits job creation and economic activity.
The legislature also finds that Hawaii companies that win federal small business innovation research funding should then be able to apply to the Hawaii small business innovation research program for small business innovation research phase II or phase III matching funds. Expanding the matching grant program will provide the necessary funding for Hawaii's high technology companies to break out of the research and development cycle and transform advanced research into innovative products, services, and companies. In particular, expanding the current matching funds program would permit Hawaii's high technology companies to successfully evolve from research and development only entities into commercially viable, globally competitive businesses.
The legislature further finds that expanding the current matching funds program would not only expand Hawaii's high technology industry, but would also bolster the State's effort to diversify and strengthen the local economy in anticipation of the next economic downturn. Expanding the current matching funds program will also serve to further the public interest in reducing "brain drain." The State has been losing too many of Hawaii's exceptional young people to other states and countries because of the limited number of high-growth, high-paying industries and jobs to keep them here or bring them back. In addition, many of the small business innovation research companies in Hawaii are also involved in dual-use work for the military, and as such, the expansion of the matching funds program will help bolster Hawaii's importance to the military and help keep the military invested in the State.
The purpose of this part is to expand the Hawaii small business innovation research program to provide a match for phase II and phase III awardees to diversify Hawaii's economy, secure the investment of millions of federal dollars into the Hawaii economy, and provide a framework for young people to create their own high tech companies as part of the State's plan to establish an innovation economy in Hawaii.
SECTION 2. Section 206M-15, Hawaii Revised Statutes, is amended to read as follows:
"§206M-15 High technology research and development loans and grants. (a) All moneys necessary to carry out the purposes of this section shall be allocated by the legislature through appropriations out of the state general fund. The development corporation shall include in its budgetary request for the upcoming fiscal period, the amounts necessary to effectuate the purposes of this section. All moneys, interest charges, and other fees collected by the development corporation under this section shall be deposited to the credit of the state general fund. In making any expenditure under this section, the development corporation shall analyze each funding request to determine whether the project to be undertaken will be economically viable and beneficial to the State.
(b) The development corporation may provide grants to any business in Hawaii that:
(1) Receives a federal small business innovation research phase I, II, or III award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract;
(2) Receives a federal small business technology transfer program award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract; or
(3) Applies for a small business innovation research federal grant or a small business technology transfer program federal grant, in an amount not to exceed $3,000,
subject to the availability of funds.
(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.
The development corporation may adopt any other rules pursuant to chapter 91 necessary for the purposes of this section.
[(d) If funds appropriated for the purpose
of making grants under this section are inadequate to satisfy all qualified
requests, the development corporation shall apply for funds to be transferred
from the Hawaii capital loan revolving fund to provide the grants in accordance
with subsection (b). The amount of any single transfer of funds shall not
exceed $100,000, and the development corporation shall transfer the entire
amount back to the Hawaii capital loan revolving fund within twelve months of
receiving the funds. No more than one fund transfer shall be outstanding at
any one time. The director of business, economic development, and tourism may
transfer funds from the Hawaii capital loan revolving fund to the development
corporation upon request to carry out the purposes of this section. Transfers
of funds shall be made without any charges or fees.]"
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 2015-2016 and the same sum or so much thereof as may be necessary for fiscal year 2016-2017 for the purposes of providing grants and loans for phases II and III awards.
The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this part.
PART II
SECTION 4. The legislature finds that there is a great need for Hawaii to develop and support manufacturing in the State. Hawaii imports over ninety per cent of the products consumed each year. At the same time, there is a great demand outside the State for products that are made in Hawaii.
The legislature also finds that 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 part is to promote manufacturing in Hawaii by establishing a grant program for manufacturers who incur expenses for manufacturing certain products and training programs in Hawaii.
SECTION 5. Chapter 206M, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§206M‑ Hawaii manufacturing capital grant program. (a) There is established the Hawaii manufacturing capital grant program, to be administered by the development corporation through a program administrator, to provide grants to Hawaii-based companies that relate to:
(1) Purchasing of manufacturing equipment;
(2) Training programs for employees on proper and safe methods of operating relevant manufacturing equipment;
(3) Improving business practices involving the 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 grant shall exceed twenty per cent of the cost of any of the above items, and no company shall receive a grant exceeding $100,000 in any given year.
(b) In reviewing grant applications pursuant to this section, the development corporation shall analyze each application to determine whether the item to be undertaken will be economically viable and beneficial to the State.
(c) The development corporation shall submit a report to the legislature, no later than twenty days prior to the convening of the regular session held in each even-numbered year. The report shall include the following information:
(1) The total number of grants provided;
(2) The type of business sectors provided with grants;
(3) The total projected economic and employment growth facilitated by the grants provided;
(4) The actual economic and employment growth that occurred as a result of the grants provided;
(5) The actual economic and financial growth of each business for five years past the end date of any grant provided under this section; and
(6) Information on each company provided with grants, including:
(A) The full business name;
(B) The date of the business's establishment; and
(C) The number of the business's employee workforce as it existed at the time the grant was provided."
SECTION 6. 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 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 grant program.
The sums appropriated shall be expended by the high technology development corporation for the purposes of this part.
PART III
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on July 1, 2053.
Report Title:
Small Business Innovation Research Awards; Technology; Hawaii Manufacturing Capital Grant Program; Appropriation
Description:
Authorizes and appropriates funds for HTDC to provide grants to businesses with a federal small business innovation research phase II or III award. Establishes and appropriates funds for the Hawaii manufacturing capital grant program. Effective 7/1/2053. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
