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HOUSE OF REPRESENTATIVES |
H.B. NO. |
999 |
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THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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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. The legislature finds that, in light of the State's ongoing economic
recovery from the outbreak of the coronavirus disease 2019 (COVID-19), the State must accelerate its economic
diversification efforts through substantial, strategic, coordinated
investments.
This Act establishes a
policy framework for Hawaii technology development corporation projects that
will ensure economic success. The
legislature finds that the implementation of this framework will not require a
significant additional investment in overhead resources but will require funds
for specific projects that are identified collaboratively by the legislature
and the Hawaii technology development corporation. The implementation will also require the
establishment of specific goals that these projects will address and reports to
the legislature that assess the effectiveness of the projects in meeting those
goals.
The legislature further
finds that through this Act, the Hawaii technology development corporation will
serve as a facilitative catalyst for innovation in the State and will help to
align the State with the emerging knowledge-based, zero‑emission, and digital
global economy while putting Hawaii on the path toward economic prosperity.
Accordingly, the purpose
of this Act is to promote economic recovery and diversification by:
(1) Establishing state goals for economic growth fueled by innovation and technology;
(2) Appropriating funds to the Hawaii technology
development corporation to implement specific projects that address those
goals;
(3) Requiring the Hawaii technology development
corporation to submit annual reports over three years to the legislature;
(4) Re-establishing the three-year Hawaii office
of naval research grant program; and
(5) Appropriating funds to establish within the
Hawaii technology development corporation one full-time equivalent (1.0 FTE)
asset manager and one full-time equivalent (1.0 FTE) aerospace development
coordinator.
PART II
SECTION 2. (a)
The projects for which funds are appropriated pursuant to sections 4 and
5 of this Act shall align with one or more of the following goals that address
economic diversification:
(1) Economic diversification through participation
in the digital economy: projects shall
address economic diversification by strengthening Hawaii's participation in the
digital economy, including:
(A) Accessing new markets and market opportunities;
(B) Strengthening business capacity and readiness to participate
in the digital economy;
(C) Retaining and strengthening businesses that
are increasing revenues through the digital economy;
(D) Strengthening digital economy infrastructure, including
broadband affordability and coworking facilities; and
(E) Increasing the number of businesses, revenue,
and employees dedicated to the digital economy;
(2) Economic diversification through strengthened
trade activities: projects shall address
economic diversification by strengthening traded activities that redistribute
Hawaii's gross domestic product, including:
(A) Increasing the export of goods manufactured in
the State;
(B) Increasing the export of knowledge-based professional services;
(C) Increasing the value of knowledge-based
professional services through research, development, and intellectual property;
(D) Strengthening the post-production capacity for
value-added agriculture and manufacturing; and
(E) Increasing the amount of
revenue and number of businesses and employees in trade sectors; and
(3) Economic diversification through increase in
activity to reduce and mitigate climate change:
projects shall address economic diversification by focusing on
activities at the intersection of technology development and climate change
mitigation, including:
(A) Making renewable energy more
affordable;
(B) Retaining and strengthening businesses that
are increasing revenues through solutions to reduce climate
change;
(C) Increasing the export of knowledge-based
professional services related to climate change mitigation; and
(D) Increasing the number of businesses, revenue, and employees in renewable energy sectors.
(b) The Hawaii technology development corporation
shall implement the projects for which funds are appropriated in sections 4 and
5 of this Act for the purpose of meeting the goals described in subsection (a);
provided that the Hawaii technology development corporation may work with any other state or county agency for the
implementation of the assigned projects.
(c) No later than twenty days prior to the
convening of the regular sessions of 2024, 2025, and 2026, the Hawaii
technology development corporation shall submit a report to the legislature that
includes:
(1) A summary of the progress of the projects
assigned to the Hawaii technology development corporation by this part;
(2) The outcomes of the projects assigned to the
Hawaii technology development corporation by this part, including an assessment
of each project's effectiveness in achieving the goals described in subsection
(a); and
(3) Any findings and recommendations, including
any proposed legislation.
SECTION 3. 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 2023-2024 to be deposited into the
strategic development programs revolving fund.
SECTION 4. There is appropriated out of the strategic
development programs revolving fund the sum of
$ or so much
thereof as may be necessary for fiscal year 2023-2024 for the purpose of
stimulating private capital investments into small businesses in Hawaii.
The sum appropriated
shall be expended by the Hawaii technology development corporation for
the purposes of this section.
SECTION 5. 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 2023-2024 for the purpose of economic diversification, as described
in section 2(a) of this Act, as follows:
(1) $2,000,000 to accelerate economic diversification by supporting, enhancing, and encouraging new accelerator programs;
(2) $2,000,000 to support economic development
opportunities with the trade sector, especially products manufactured in Hawaii,
by working with strategic partners to build awareness of Hawaii-made products
outside of the State;
(3) $2,000,000 for operations, administration, and
award of grants by the Hawaii small business innovation research program;
(4) $2,000,000 to support economic development
opportunities with the defense sector, including aerospace, and to support
companies conducting small business innovation research to transition past
grants into large contracts;
(5) $1,500,000 for operations, administration, and
award of grants by the manufacturing assistance program; and
(6) $1,500,000 to reduce and mitigate climate
change through renewable energy technology demonstration projects such as
hydrogen, geothermal, or clean ground, air, and sea transportation in support
of Hawaii's hydrogen hub proposal to the United States Department of Energy.
The sum appropriated
shall be expended by the Hawaii technology development corporation for the
purposes of this section.
SECTION 6. The appropriation made for projects authorized by section 5 of this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2026, shall lapse as of that date.
PART III
(b) Subject to the availability of funds, the Hawaii technology development corporation may provide a grant to any business that:
(1) Has been awarded a competitive contract from the Department of Defense Office of Naval Research that is related to research on alternative energy and energy efficiency technologies in the fields of geothermal, solar, wind, ocean power, hydrodynamics, bioenergy, biomass, solid waste, smart grids, transportation, or demand response;
(2) Is
sixty per cent or more resident-owned; provided that for purposes of this
paragraph, "resident" shall have the same meaning as defined in
section 235-1, Hawaii Revised Statutes;
(3) Is
a for-profit entity organized under the laws of the State;
(4) Has
been doing business in the State for not less than one year;
(5) Agrees
to expend within the State all grant funds awarded pursuant to this part; and
(6) Conducts research in alternative energy that has a high technology readiness level or high potential for implementation as evidenced by a contract, funded by moneys designated by the United States Congress as funding for alternative energy and a national defense budget funding directive, with the Department of Defense Office of Naval Research that is existing and active or was granted within three years prior to the effective date of this Act;
provided that the amount of any grant awarded pursuant to this part shall not exceed fifty per cent of the amount of the grant awarded to the business by the Department of Defense Office of Naval Research; provided further that the business shall not be eligible for a grant pursuant to this section if the business has obtained any other state grant for the same research, other than the grant awarded to the business by the Department of Defense Office of Naval Research, at the time of or during the duration of the grant from the Hawaii office of naval research grant program.
(c) The Hawaii office of naval research grant program shall cease to exist on June 30, 2027.
(d) The department of business, economic development, and tourism shall adopt rules, pursuant to chapter 91, Hawaii Revised Statutes, necessary for the purposes of implementing the Hawaii office of naval research grant program.
SECTION 8. There is established the alternative energy research and development revolving fund for the purpose of promoting alternative energy research and development in Hawaii.
The alternative energy research and development revolving fund shall be abolished on June 30, 2027, and all unencumbered balances shall lapse to the credit of the general fund.
SECTION 9. 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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the alternative energy research and development revolving fund.
SECTION 10. There is appropriated out of the alternative energy research and development revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the purpose of the Hawaii office of naval research grant program; provided that the moneys appropriated shall not lapse at the end of the 2024-2025 fiscal year; provided further that any moneys that remain unencumbered on June 30, 2026, shall lapse on that date.
The sums appropriated shall be expended by the Hawaii technology development corporation for the purposes of this section.
PART IV
SECTION 11. 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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to establish one full-time equivalent (1.0 FTE) asset manager position for the Hawaii technology development corporation.
The sums appropriated shall be expended by the Hawaii technology development corporation for the purposes of this section.
SECTION 12. 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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to establish one full-time equivalent (1.0 FTE) aerospace development coordinator position for the Hawaii technology development corporation.
The sums appropriated shall be expended by the Hawaii technology development corporation for the purposes of this section.
PART V
SECTION 13. This Act shall take effect on June 30, 3000.
Report Title:
HTDC; Economic Diversification; Hawaii Office of Naval Research Grant Program; Revolving Fund; Positions; Appropriation
Description:
Establishes a public policy framework that addresses state goals in the area of economic diversification. Appropriates funds to the Hawaii Technology Development Corporation to implement specific projects that address those goals. Requires the Hawaii Technology Development Corporation to submit annual reports over 3 years to the Legislature. Authorizes the Hawaii Technology Development Corporation to temporarily re-establish the Hawaii Office of Naval Research Grant Program to provide 50% matching grants to Hawaii awardees of alternative energy research grants from the Department of Defense Office of Naval Research. Establishes the Alternative Energy Research and Development Revolving Fund. Appropriates moneys into and out of the revolving fund. Appropriates moneys to establish 1.0 full‑time equivalent (1.0 FTE) asset position and 1.0 full-time equivalent (1.0 FTE) aerospace development coordinator. Effective 6/30/3000. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.