Report Title:

Small Business Innovation

Description:

Clarifies the operation of the high technology research and development loan and grant program to allow the State to catch up to increased federal award amounts.  Provides that the High Technology Development Corporation shall provide a grant to any small business in Hawaii that receives federal small business innovative research or technology transfer awards.  (SD1)

THE SENATE	S.B. NO.	523
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HIGH TECHNOLOGY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 206M-15, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  The development corporation [may] shall 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,] to any business in Hawaii that:

(1) Receives a federal small business innovation research phase I award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract;

(2) Receives a federal small business technology transfer program award or contract from any participating federal agency, up to fifty per cent of the amount of the federal award or contract; or

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

subject to the availability of funds."

     2.  By amending subsection (d) to read:

     "(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."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.