Report Title:

Appropriation; Small Business Development

 

Description:

Appropriates funds for small business development.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

180

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

Making AN APPROPRIATION FOR SMALL BUSINESS DEVELOPMENT.

 

 

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

 


SECTION 1.  The purpose of this Act is to appropriate moneys to the Hawaii Small Business Development Center Network to further its mission of providing assistance to small businesses through management-force training.  Management-force training promotes improvements in the conditions under which small businesses thrive and promotes sustainable economic development.  The Hawaii Small Business Development Center Network has provided management-force training statewide since 1990.

A sustainable economy is most effectively garnered through an educated workforce.  This includes the short-term education of small business owners and managers who create new jobs and generate greater tax revenues for the State.  These increased tax revenues support the social, health, and educational programs of the government.

The Hawaii Small Business Development Center Network promotes a healthy and sustainable economy by providing consulting and training to existing small businesses and new ventures.  It is the only accredited business assistance organization in Hawaii and the only such organization that conducts third-party annual economic impact studies of its outcomes.  Moreover, it is part of a matching-funds program partially funded by the United States Small Business Administration, the University of Hawaii at Hilo, and a consortium of other federal, state, and private-sector sponsors and partners.

This investment in human capital will lead to real, sustained growth and high productivity.  Funding this Act would generate an annual economic impact of approximately $29,000.  This projection is based on an independent economic impact study completed in 2004, The Annual Economic Impact of the Hawaii Small Business Development Center.  According to the study, for every dollar invested by the State, $4.45 was returned to the State in the first year in new incremental taxes from job creation, retention of existing jobs, and sales increases.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $712,000 or so much thereof as may be necessary for fiscal year 2007-2008, to create sustainable economic development through consulting and training services at the Hawaii Small Business Development Center Network as follows:

     (1)  $114,000 to fund an existing, but vacant, position for an associate state director.

     (2)  $215,000 to re-establish a consulting and training program in Kailua-Kona that will bring the Hawaii Small Business Development Center Network into compliance with the requirements of the United States Small Business Administration;

     (3)  $268,000 to fill a vacant position at the Hawaii Business Research Library and at the Honolulu center and to create an additional position at the Honolulu center; and

     (4)  $80,000 to restore funds lost to indirect fees.

     The sum appropriated shall be expended by the University of Hawaii-Hilo for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2007.

 

INTRODUCED BY:

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