HOUSE OF REPRESENTATIVES	H.B. NO.	991
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION.

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

SECTION 1. Section 206M-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The governing body of the development corporation shall consist of a board of directors having nine voting members. The director of business, economic development, and tourism, [and an appointed member from the University of Hawaii, or their designated representatives,] or the director's designee, and the chairperson of the board of regents of the university of Hawaii shall serve as ex officio[[],[]] voting members of the board[.]; provided that the chairperson of the board of regents, with the approval of the board of regents and subject to quorum and majority requirements, may designate another regent to serve. All members shall have knowledge, interest, and proven expertise in, but not limited to, one or more of the following fields: finance, commerce and trade, corporate management, marketing, economics, engineering, telecommunications, innovation, and other technology fields. Seven of the members shall be appointed by the governor pursuant to section 26-34 for staggered terms; provided that membership shall include:

(1) Three members who shall be appointed by the governor from a list of four nominees submitted by the president of the senate, and three members who shall be appointed by the governor from a list of four nominees submitted by the speaker of the house of representatives; provided that if fewer than four nominees are submitted for each appointment, the governor may disregard the list; and

(2) One member who shall be appointed by the governor from the economic development board of Maui, Kauai, or Hawaii county.

The governor shall make board member appointments to ensure the fulfillment of all requirements of paragraphs (1) and (2); provided that upon the occurrence of a vacancy subject to paragraph (1), the governor shall notify the president of the senate and the speaker of the house of representatives of any unfulfilled requirements pursuant to paragraphs (1) and (2), and the president of the senate or the speaker of the house of representatives, as appropriate, shall submit nominees who fulfill the requirements pursuant to paragraphs (1) and (2). All appointed members of the board shall continue in office until their respective successors have been appointed. The director of business, economic development, and tourism shall serve as the chairperson until such time as a chairperson is elected by the board from the membership. The board shall elect other officers as it deems necessary."

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 to any business in Hawaii that:

(1) Receives a federal small business innovation research phase I or II 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;

(3) Receives a federal small business innovation research phase III or small business technology transfer program phase III award or contract, up to fifty per cent of the amount of the award or contract funded by private sector or government sources outside of the program; or

(4) 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."

SECTION 3. Section 206M-15.1, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established the manufacturing development program, through which the development corporation may provide grants to any business in Hawaii that is a manufacturer in the State and requires assistance for any of the following items:

(1) Purchasing of manufacturing equipment;

(2) Training of employees on the use of new or existing manufacturing equipment;

(3) Improving existing energy efficiency manufacturing equipment or the purchase of improved energy efficiency equipment in the manufacturing process; [or]

(4) Purchasing of renewable energy systems, including photovoltaic, for the purpose of reducing manufacturing energy costs; or

[(4)] (5) Studying or planning the implementation of a new manufacturing facility;

provided that no grant shall exceed twenty per cent of the cost of any of the above items, and no company shall receive a grant exceeding $100,000 in any given year."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on June 30, 3000.

Report Title:

HTDC; Small Business Innovation Research Grant Program; Small Business Technology Transfer Grant Program; Manufacturing Development Grant Program

Description:

Amends the composition of the Hawaii Technology Development Corporation Board of Directors to include the Chairperson of the Board of Regents of the University of Hawaii, unless the Chairperson, with the approval of the Board of Regents, designates another Regent to serve. Changes the cap for awards to assist businesses applying for the Small Business Innovation Research Grant Program and the Small Business Technology Transfer Grant Program of the Hawaii Technology Development Corporation to an unspecified amount. Adds purchasing of renewable energy systems as an eligible expense, and clarifies that training on both new and existing manufacturing equipment is an eligible expense, for the Manufacturing Development Grant Program of the Hawaii Technology Development Corporation. Effective 6/30/3000. (SD1)

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