HB2415 SD2

PART I

SECTION 1. Section 206M-15, Hawaii Revised Statutes, is amended by amending subsections (b), (c), and (d) to read as follows:

"(b) The development corporation may provide [~~grants as follows:~~

~~(1)~~ ~~Up to the lesser of:~~

~~(A)~~ ~~Fifty per cent of the federal small business innovation research phase I award or contract;~~

~~(B)~~ ~~$25,000 to each business in Hawaii that receives a federal small business innovation research phase I award or contract from any participating federal agency;~~

~~(2)~~ ~~Up to $25,000 to each business in Hawaii that receives a federal small business technology transfer program award or contract from any participating federal agency; or~~

~~(3)~~ ~~Up to $3,000 to each business in Hawaii that applies for a small business innovation research federal grant or small business technology transfer program federal grant,~~]

a grant to each business in Hawaii that:

(1) Receives a federal small business innovation research phase I award or contract, in an amount not to exceed fifty per cent of the amount of the award or contract;

(2) Receives a federal small business technology transfer program award or contract from any participating federal agency, in an amount not to exceed fifty per cent of the amount of the award or contract; or

(3) Applies for a small business innovation research federal grant, or small business technology transfer program federal grant, in an amount not to exceed $3,000,

subject to the availability of funds.

(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~~] may 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."

PART II

SECTION 2. Chapter 206M, part IV, Hawaii Revised Statutes, is repealed.

SECTION 3. Any contractual obligations entered into by the high technology innovation corporation shall cease upon repeal of part IV of chapter 206M, Hawaii Revised Statutes, and any unexpended contractual funds shall lapse to the general fund.

SECTION 4. 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 2008-2009 for small business innovation research grants or small business technology transfer program grants.

The sums appropriated shall be expended by the high technology development corporation for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2008.

HOUSE OF REPRESENTATIVES	H.B. NO.	2415
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII		S.D. 2