Report Title:

Targeted Business Development Project; Appropriation

Description:

Appropriates funds for a grant-in-aid to Enterprise Honolulu to conduct a targeted business development project.

THE SENATE

S.B. NO.

1701

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TECHNOLOGY AND INNOVATION INDUSTRIES.

 

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

SECTION 1. The legislature finds that Hawaii's innovation industries represent five per cent of the State's workforce and seventeen per cent of the State's revenue from its top three business sectors: tourism ($10,700,000,000), military ($4,480,000,000), and innovation industries ($3,150,000,000).

The legislature also finds that Hawaii is ranked last in the nation for its level of living-wage jobs. Forty-six per cent of the State's workers do not have a job that pays a living wage. The State has the highest per capita in the nation of workers in multiple jobs and the second worst per capita level of homeownership.

The legislature further finds that Enterprise Honolulu, a nonprofit economic development organization funded by Oahu's private sector, is proposing a targeted business development project that will achieve clear and measurable results. This project is currently not being done by any organization in Hawaii. In addition, Enterprise Honolulu will provide a one-to-one matching fund investment to the project to ensure the success of this outreach program for the State.

The targeted business development project's goals are to accelerate the growth of high paying jobs and diversification of Hawaii's economy, create new investment and new wealth, increase tax revenues, and benefit all island communities. Although the initial phase will be Oahu-centric, a referral process will be set up for companies with business applications or preferences for other islands. Each island can be more effective in promoting their business potential when Hawaii's statewide business image is clearly defined and is consistent in a manner that respects Hawaii's island culture and ecology.

Enterprise Honolulu's targeted business development project will focus on five innovation industries with significant growth potential:

(1) Life sciences - biotechnology;

(2) Defense - defense dual use technology;

(3) Film and digital media;

(4) Information and communications technology; and

(5) Ocean sciences.

Phase one of the targeted business development project will:

(1) Set specific short and long term goals with accountability measures in place;

(2) Initiate a business development follow up program that allows for long-term relationship building; and

(3) Provide a platform to build upon that will benefit other strategic plans for the State, such as business tourism.

The targeted business development project plans on accomplishing these objectives by first qualifying site selectors for the targeted industries, identifying real estate facilities managers of these industries who are responsible for expansion siting, identifying venture capitalists by area and category, and then marketing the State to initial target areas such as Seattle, San Francisco/San Jose, Los Angeles, San Diego and Washington D.C.

The legislature believes that Enterprise Honolulu's targeted business development project is an excellent opportunity to accelerate the growth of living wage jobs in the State.

The purpose of this Act is to appropriate matching state funds as a grant-in-aid to Enterprise Honolulu to conduct its targeted business development project.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000, or so much thereof as may be necessary for fiscal year 2005-2006, as a grant-in-aid to Enterprise Honolulu to conduct a targeted business development project.

SECTION 3. The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act; provided that no funds shall be expended unless matched on a dollar-for-dollar basis by Enterprise Honolulu.

SECTION 4. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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