STAND. COM. REP. NO. 3510

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2219

       H.D. 1

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2219, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO INNOVATION BUSINESS INTERACTION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to establish a commercialization loan program to support Hawaii-based small businesses operating in technology-related fields.

 

     Specifically, this measure:

 

(1) Establishes the HI-impact loan program to provide capital to support small businesses operating in technology-related fields;

 

(2)  Authorizes the Board of Directors of the High Technology Development Corporation to hire an administrator for the HI-impact loan program;

 

(3)  Requires the High Technology Development Corporation to model the HI-impact loan program after the Maryland Technology Development Corporation technology commercialization fund;

 

(4)  Establishes requirements for Hawaii-based businesses to receive a loan under the HI-impact loan program;

 

(5)  Establishes the HI-impact special fund to fund loans issued by the HI-impact loan program; and

 

(6)  Appropriates funds to be deposited into the HI-impact special fund.

 

     Your Committee received written comments in support of this measure from the High Technology Development Corporation and Chamber of Commerce Hawaii.

 

     Your Committee received comments on this measure from the Department of Budget and Finance.

 

     Your Committee finds that many technology businesses experience difficulty in acquiring the capital necessary to advance products to market and achieve profitability.  A loan program for these small businesses will help to fill this critical void, which in turn will help to grow Hawaii's technology industry, create high paying technology jobs, and keep local expertise in the State.

 

     Your Committee has amended this measure by:

 

(1)  Authorizing, rather than requiring, the High Technology Development Corporation to model the HI-impact loan program after the Maryland Technology Development Corporation technology commercialization fund;

 

(2)  Clarifying that a Hawaii-based business submit the technical budgeted plan of work to the HI-impact administrator, to receive funding under the HI-impact loan program; and

 

(3)  Making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2219, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2219, H.D. 1, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair