§211E-2 Hawaii innovation development fund; establishment.
(a) There is established a revolving fund to be known as the Hawaii innovation development fund, that shall be administered by the department of business, economic development, and tourism for the purpose of promoting the development of new products or inventions that have direct economic benefits for Hawaii. The department shall provide low interest loans pursuant to subsection (b) to inventors for the development of their new product or invention. All moneys received as repayment of loans and interest payment shall be deposited in the fund. The department may transfer moneys from the Hawaii innovation development fund established by this section to either the state disaster revolving loan fund established by section 209-34, or the Hawaii capital loan revolving fund established by section 210-3, and moneys from these three funds shall be disbursed by the department or the director pursuant to chapters 209, 210, and 211E, respectively. The department or the director may transfer moneys from the state disaster revolving loan fund and the Hawaii capital loan revolving fund to the Hawaii innovation development fund for disbursement pursuant to this chapter:(1) The total amount of moneys transferred to the state disaster revolving loan fund, the Hawaii capital loan revolving fund, or the Hawaii innovation development fund shall not exceed $1,000,000 for each respective fund within the calendar year;
(2) Notwithstanding paragraph (1), the total amount of moneys transferred between the state disaster revolving loan fund and the Hawaii capital loan revolving fund or the Hawaii innovation development fund shall not exceed $1,000,000 within the calendar year if the governor proclaims a state disaster pursuant to section 209-2; and
(3) The department shall report any transfer of funds made under this section to the legislature within ten days of the transfer.
(b) The department shall adopt rules pursuant to chapter 91 to carry out the purposes of this chapter including the following:
(1) Prescribe the qualification for eligibility of loan applicants;
(2) Establish preferences and priorities in determining eligibility for loans and loan repayments;
(3) Determine the necessity for and the extent of security required in any loan;
(4) Establish the interest rates chargeable by the State; provided that each loan granted under this section shall bear a simple interest which shall not exceed seven and one-half per cent; and
(5) Prescribe the forms of financial participation the department may engage in as a result of making a loan under this chapter, including but not limited to warrants, options, or royalties on sales or earnings. [L Sp 1981 1st, c 8, pt of §2; am L 1987, c 242, §4 and c 336, §7; am L 1990, c 293, §8; am L 1991, c 43, §5; am L 1996, c 143, §4]