HB180 HD1

HOUSE OF REPRESENTATIVES	H.B. NO.	180
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. A sustainable economy is most effectively achieved through an educated workforce. This education includes the short-term training of small business owners and managers who create new jobs and generate greater tax revenues for the state. These increased tax revenues support the social, health, and educational programs of the government.

The Hawaii Small Business Development Center Network has promoted a healthy and sustainable economy by providing consulting and training, including management-force training since 1990, to existing small businesses and new ventures across the state. It is the only accredited business assistance organization in Hawaii and the only such organization that conducts third-party annual economic impact studies of its outcomes. Management-force training promotes improvements in the conditions under which small businesses thrive and promotes sustainable economic development.

The Hawaii Small Business Development Center Network is also part of a matching-funds program partially funded by the United States Small Business Administration; the University of Hawaii at Hilo; and a consortium of other federal, state, and private-sector sponsors and partners.

This investment in human capital will lead to real, sustained growth and high productivity. Funding this Act would generate an annual economic impact of approximately $29,000,000. This projection is based on an independent economic impact study completed in 2004, The Annual Economic Impact of the Hawaii Small Business Development Center. According to the study, for every dollar invested by the State, $4.45 was returned to the State in the first year in new incremental taxes from job creation, retention of existing jobs, and sales increases.

The purpose of this Act is to appropriate moneys to the Hawaii Small Business Development Center Network to further its mission of providing assistance to small businesses through management-force training.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $4 or so much thereof as may be necessary for fiscal year 2007-2008 to create sustainable economic development through consulting and training services at the Hawaii Small Business Development Center Network as follows:

(1) $1 to fund an existing, but vacant, position for an associate state director;

(2) $1 to re-establish a consulting and training program in Kailua-Kona that will bring the Hawaii Small Business Development Center Network into compliance with the requirements of the United States Small Business Administration;

(3) $1 to fill a vacant position at the Hawaii Business Research Library and at the Honolulu center and to create an additional position at the Honolulu center; and

(4) $1 to restore funds lost to indirect fees.

The sum appropriated shall be expended by the University of Hawaii at Hilo for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2007.