HOUSE OF REPRESENTATIVES

H.B. NO.

2556

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to innovation business.

 

 

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

 


     SECTION 1.  The legislature finds that in order to keep our community vibrant and our economy expanding, Hawaii will need to focus on sectors that will bring new dollars to Hawaii's economy.  A research innovation sector that fosters a research environment to fuel innovative ideas and promote entrepreneurship will better position Hawaii for future economic growth and expansion.  There is no question that innovation as a result of research and development contributes greatly to economic growth.  It is oftentimes the catalyst for change, job creation, and a higher standard of living.  Hawaii's research and development industry will bring in new dollars to our State's economy and create a wide range of high-skilled, high-paying jobs for our young people so they may continue to live and work in Hawaii.  The research and development sector is vital to Hawaii's future economic growth.

     The purpose of this Act is to build on the successes of Hawaii's science and technology industries and establish a research and development program and a research and development special fund with the intention of turning research and development into commercially viable products and services to expand and diversity Hawaii's economy.

     SECTION 2.  Chapter 206M, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§206M-A  Research and development program established.  (a)  There is established within the development corporation, the research and development program, to help Hawaii-based small businesses collaborate with commercial partners to further refine and optimize research and development performed in Hawaii.

     (b)  The purpose of the research and development program shall be to:

     (1)  Develop, implement, and operate the research and development special fund to support product development, technology transfer, and commercialization;

     (2)  Provide capital to support accelerated commercialization activities for small businesses in the State of Hawaii;

     (3)  Provide capital to sustain high-potential business infrastructure development to assist the enterprise towards commercial success;

     (4)  Reverse the loss of qualified workers to other states by providing jobs to retain existing Hawaii technology employees and enable highly qualified scientists and engineers to return to living-wage jobs in Hawaii;

     (5)  Keep technology companies in Hawaii by limiting the need to seek out-of-state venture capital, which dilutes local ownership and increases the probability of high-potential technology companies moving from Hawaii; and

     (6)  Provide grants of up to $           for critical product development that enables a business to achieve significant product development and technical milestones.

     (c)  To receive funding, a Hawaii-based business shall submit proof of the federal research and development tax credits received to the development corporation.  The business shall then receive an amount equal to the average of the federal tax credit for the past three tax years.

     (d)  The development corporation may adopt rules pursuant to chapter 91 necessary to carry out the purposes of this section.

     §206M-B  Research and development special fund; established.  There is established in the treasury of the State of Hawaii the research and development special fund to be administered by the development corporation for the purposes set out in section 206M-A."

     SECTION 3.  There is appropriated out of the general revenues the sum of $           or so much thereof as may be necessary for fiscal year 2018-2019 to be deposited into the research and development special fund.

     SECTION 4.  There is appropriated out of the research and development special fund the sum of $           or so much thereof as may be necessary for fiscal year 2018-2019 for the purposes set out in section 206M-A, Hawaii Revised Statutes.

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

     SECTION 5.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 6.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaii Technology Development Corporation; Research and Development Program; Research and Development Special Fund; Appropriation

 

Description:

Establishes the research and development program in the Hawaii technology development corporation to help Hawaii-based small businesses collaborate with commercial partners to further refine and optimize research and development performed in Hawaii.  Establishes the research and development special fund.  Appropriates funds for the purposes of the research and development program.

 

 

 

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