HB713

SECTION 1. Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§196- Alternate energy revolving loan fund. (a) There is created an alternate energy revolving loan fund to be administered by the department of business, economic development, and tourism. The revolving loan fund shall provide low interest loans to eligible persons to purchase or install any alternate energy appliance, product, or system under this chapter, including solar, photovoltaic, or wind energy devices or devices under section 235-12.5; provided that the maximum loan amount shall be $ per loan applicant.

(b) Any funds appropriated for, or received or collected by, the department for the purpose of the revolving loan fund shall be used for the revolving loan fund; provided that interest earned on moneys in the revolving loan fund may be used by the department to administer the fund.

(c) The department shall establish the terms and conditions of the revolving loan fund, including loan maturity requirements, interest rates, collateral requirements, monetary penalties, and other requirements necessary to administer the revolving loan fund; provided that:

(1) The loan applicant resides in the residence that is the object of the loan under this section; and

(2) The applicant agrees, as part of the terms of the loan agreement, to continue to reside in the residence under paragraph (1) for at least five years after the execution of the loan.

(d) Any person who violates any provision under this section or vacates or sells the person's residence that is the object of the loan under this section within five years of executing the loan shall be subject to a penalty equal to the compounded difference between the interest rate charged by the department under the revolving loan fund loan and the average of the interest rates for a similar loan charged by the three largest banks chartered to do business in the State at the time the loan provided under this program was approved; provided that the department may cancel the loan at such time or any other time with good cause as determined by the department. The department may also waive the penalty authorized under this subsection for good cause as determined by the department.

(e) The department may take all necessary actions to collect for the default on any principal or interest on any loans made from the revolving loan fund and to otherwise secure the loans in a manner that provides reasonable protection of the State's interests. The department may enter into agreements or purchase services required for the purposes of the revolving fund loan, including holding loan payments in any state or national bank authorized to do business in the State.

(f) The department shall adopt rules in accordance with chapter 91 for the purposes of this section.

(g) The powers conferred upon the department by the revolving fund loan shall be in addition and supplemental to the powers conferred by any other law, and nothing herein shall be construed as limiting any powers, rights, privileges, or immunities so conferred."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , for fiscal year 2007-2008, and the same sum, for fiscal year 2008-2009, to be deposited into the alternate energy revolving loan fund established under section 1 of this Act.

SECTION 3. There is appropriated out of the alternate energy revolving loan fund the sum of $ , or so much thereof as may be necessary for fiscal year 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for the purposes of this Act.

SECTION 4. The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	713
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII