SB1297

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 shall address and reports to the legislature that assess the effectiveness of the projects in meeting those goals.

The legislature 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.

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; and

(3) Requiring the Hawaii technology development corporation to submit annual reports to the legislature that summarize:

(A) The progress of projects assigned to the Hawaii technology development corporation by this Act;

(B) The outcomes of the projects assigned to the Hawaii technology development corporation, including an assessment of each project's effectiveness in achieving state goals; and

SECTION 2. (a) The legislature declares that the projects for which funds are appropriated pursuant to sections 4 and 5 of this Act 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;

(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 of Hawaii;

(B) Increasing the export of knowledge-based professional services;

(C) Increasing the value of knowledge-based professional services through research and development and intellectual property;

(D) Strengthening the post-production capacity for value-added agriculture and manufacturing; and

(E) Increasing the number of businesses, revenue, and employees in traded sectors.

(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;

(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 Act;

(2) The outcomes of the projects assigned to the Hawaii technology development corporation by this Act, 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 $5,000,000 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 $5,000,000 or so much thereof as may be necessary for fiscal year 2023-2024 for the purposes 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 Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 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;

(3) $2,000,000 to support economic development opportunities with the defense sector including aerospace and supporting companies conducting small business innovation research through matching grants; and

(4) $4,000,000 to reduce and mitigate climate change through renewable energy technology demonstration projects such as hydrogen, geothermal, or clean ground, air, and sea transportation.

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

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, 2025, shall lapse as of that date.

SECTION 7. This Act, upon its approval, shall take effect on July 1, 2023.

INTRODUCED BY:

_____________________________

BY REQUEST

THE SENATE	S.B. NO.	1297
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII