Establishes a small business technology transfer program by authorizing the awarding of grants to Hawaii businesses that receive federal; small business innovation research grants or federal technology transfer program grants.

A BILL FOR AN ACT

SECTION 1. In 1989, the legislature created the Hawaii small business innovation research assistance program under chapter 206M-15, Hawaii Revised Statutes. Prior to 1989, there were two Hawaii small businesses that received federal small business innovation research awards. Since 1989, fifty-six Hawaii companies have won two hundred forty-five federal small business innovation research grants, bringing to Hawaii approximately $56,500,000 in federal small business innovation research phase I and phase II funds, plus $57,500,000 in phase III federal small business innovation research commercialization contracts. According to the United States Department of Agriculture, Hawaii companies have won the highest number of United States Department of Agriculture small business innovation research grants per capita than any other state.

Hawaii's cumulative state investment in the Hawaii small business innovation research assistance program of $3,700,000 returns fifteen to one in federal phase I and II grants and thirty to one if the phase III commercial contracts are included.

Today small business innovation research is a $2,000,000,000 federal funding program that encourages small businesses to develop commercially viable technologies or innovations. Organized as a competition, the federal small business innovation research program allows small companies the opportunity to test high-risk theories and develop innovative technologies. To compete for federal small business innovation research dollars, ten participating federal agencies issue scheduled program solicitations seeking research and development in their respective areas of interests, disciplines, and missions. These federal departments and agencies are required to reserve a portion of their research and development funds for federal small business innovation research that has potential for commercialization and public benefit. The participating federal agencies include the Department of Agriculture, Department of Commerce, Department of Defense, Department of Education, Department of Energy, Department of Health and Human Services, Department of Transportation, Department of Homeland Security, Environmental Protection Agency, National Aeronautics and Space Administration, and the National Science Foundation.

Additionally, the high technology development corporation proposes to increase the number of new Hawaii technology companies applying for small business innovation research and small business technology transfer program federal grant funds by expanding its current Hawaii small business innovation research assistance program to include phase 0 competition assistance grants. Phase 0 funds will be used to overcome obstacles faced by technology companies when developing a competitive small business innovation research and small business technology transfer program proposal. Typical obstacles may include determining whether a concept or idea is truly innovative, appropriate laboratory research, access to and contact with distant collaborators including faculty, researchers, and scientific writers. These phase 0 competition assistance grants will be available to Hawaii companies developing a small business innovation research or small business technology transfer program grant proposal. The results will facilitate more competitive proposals and assist Hawaii's growing high technology research and development niche.

The purpose of this Act is to create and establish a small business technology transfer program.

SECTION 2. Section 206M-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The development corporation may provide grants not exceeding the lesser of:

subject to the availability of funds."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.