Redirects existing principal and interest payments of outstanding Hawaii Capitol Loan Program loans to the Hawaii Strategic Development Corp. revolving fund for purposes of matching program revenues with expenditures.

A BILL FOR AN ACT

SECTION 1. The legislature finds that section 7, Act 178, Session Laws of Hawaii 2003, repealed section 210-3, Hawaii Revised Statutes, in effect eliminating the Hawaii capital loan revolving fund. With the elimination of this revolving fund, into which had been deposited all moneys received as repayments of loans under the Hawaii capital loan program, all such payments subsequent to the repeal of the Hawaii capital loan revolving fund were diverted to the general fund.

During the regular session of 2005, the staff and expenses of the Hawaii capital loan program were transferred to the Hawaii strategic development corporation, but without their associated revenues (i.e., principal and interest payments under the capital loan program). Since the intent of the legislature was to transfer the staff and expenses of the Hawaii capital loan program with its associated revenues, this Act corrects the oversight of failing to redirect the associated revenues with the transferred liabilities of the capital loan program. Thus, this technical housekeeping measure redirects the current income streams from the Hawaii capital loan program principal and interest repayments to the Hawaii strategic development corporation.

SECTION 2. Section 210-2, Hawaii Revised Statutes, is amended to read as follows:

"§210-2 Hawaii capital loan program. There is created a capital loan program which shall be administered by the director of business, economic development, and tourism in accordance with the spirit and intent of this chapter. All moneys received as principal and interest payments derived from any loans issued by the program shall be deposited into the Hawaii strategic development corporation revolving fund to meet the purposes of this program."

SECTION 3. New Statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2006.