Report Title:

Small Business Technology Transfer Program; Established

Description:

Establishes a small business technology transfer program within the high technology development corporation. (HB3060 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

3060

TWENTY-THIRD LEGISLATURE, 2006

H.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. The legislature finds that, in 1989, the legislature created the Hawaii small business innovation research grant program under chapter 206M-15, Hawaii Revised Statutes. Prior to 1989, there were two Hawaii small business innovation research grant program-awarded companies, but since 1989, fifty-six Hawaii companies have won two hundred forty-five small business innovation research grant program awards. These grant program awards brought approximately $56,500,000 in federal small business innovation research grant program Phase I and Phase II funds to Hawaii. In addition to these grants, $57,500,000 in Phase III small business innovation research grant program commercialization contracts have been awarded to Hawaii companies. According to the United States Department of Agriculture, Hawaii companies have won the highest number of United States Department of Agriculture small business innovation research grant program awards per capita of any state.

The legislature also finds that Hawaii's cumulative state investment in the Hawaii small business innovation research grant program of $3,700,000 has a return ratio of 15:1 in federal Phase I and II grants and 30:1 if the Phase III commercial contracts are included.

The legislature further finds that, currently, the federal small business innovation research grant program is a $2,000,000,000 program that encourages small businesses to develop commercially viable technologies or innovations. Organized as a competition, the federal small business innovation research grant program allows small companies the opportunity to test high-risk theories and develop innovative technologies.

To compete for small business innovation research grant program dollars, ten participating federal agencies issue scheduled program solicitations seeking research and development in their respective areas of interests, disciplines, and missions. Federal departments and agencies, such as the Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Transportation, and Homeland Security, the Environmental Protection Agency, National Aeronautics and Space Administration, and the National Science Foundation, are required to reserve a portion of their research and development funds for small business innovation research grant programs.

With new infrastructure and projects dedicated to the development of Hawaii's biotechnology and life sciences industry, the high technology development corporation proposes to extend its existing small business innovation research grant program to include a small business technology transfer program to encourage small companies and researchers at nonprofit research institutions, including research universities and colleges, to work together to move laboratory-developed technologies to the marketplace and to foster technology-based economic development. The following five federal departments and agencies are required to reserve a portion of their research and development funds for the small business technology transfer program: the Departments of Defense, Energy, and Health and Human Services, the National Aeronautics and Space Administration, and the National Science Foundation. According to program requirements, a minimum of forty per cent of each small business technology transfer program project must be carried out by the small business, and a minimum of thirty per cent of the effort must be performed by the research institution.

The legislature also finds that the high technology development corporation proposes to increase the number of new Hawaii technology companies applying for small business innovation research and small business technology transfer federal grant funds by expanding its existing Hawaii small business innovation research program to include Phase 0 competition assistance grants. Phase 0 funds will be used to overcome obstacles faced by technology companies when developing competitive small business innovation research and small business technology transfer proposals. Typical obstacles may include:

(1) Determining whether a concept or idea is truly innovative;

(2) Determining whether laboratory research is appropriate; and

(3) Access to distant collaborators, including faculty, researchers, and scientific writers.

These Phase 0 competition assistance grants will be available to Hawaii companies developing a small business innovation research or small business technology transfer program grant proposal. The results will facilitate more competitive proposals and assist Hawaii's growing high technology research and development niche.

The purpose of this Act is to establish a small business technology transfer program.

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 not exceeding the lesser of:

(1) Fifty per cent of the federal small business innovation research phase I award or contract; [or]

(2) $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[,];

(3) 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

(4) 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;

subject to the availability of funds."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2020.