Military communities; economic development
Requires DBEDT to assist communities surrounding military installations in obtaining financing for economic development projects that seek to address future realignment or closure of an installation. (HB2661 HD1)
HOUSE OF REPRESENTATIVES
TWENTY-SECOND LEGISLATURE, 2004
STATE OF HAWAII
A BILL FOR AN ACT
relating to economic development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 201, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part . MILITARY COMMUNITIES
201-A Definitions. For the purposes of this part:
"Department" means the department of business, economic development, and tourism.
"Director" means the director of business, economic development, and tourism.
"Military community" means persons in a geographical area within three miles of a military installation.
"Military installation" includes any military base, airport, camp, post, station, yard, center, home-port facility for a ship, or any other military activity center that is under the jurisdiction of the United States Department of Defense.
"Person" means a for-profit business organized as a sole proprietorship, corporation, limited liability company or partnership, or a nonprofit organization or association, whether or not incorporated.
201-B Economic development; financial assistance. (a) The department shall assist persons in military communities to obtain financing for economic development projects that seek to address future realignment or closure of a military installation.
The department shall refer persons in the military community to:
(1) A local, private economic-development organization; or
(2) An appropriate state agency that has an existing program that is able to provide financing for the project.
(b) A state agency making a loan to a person in a military community under this section shall evaluate the project and determine whether the project may be financed through the agency's program. The state agency shall have sole discretion on whether to finance the project.
(c) The department shall maintain a record of each loan granted to a person in a military community that includes:
(1) The amount of the loan;
(2) The agency making the loan; and
(3) A description of the project.
§201-C Memorandum of understanding. The department shall enter into a memorandum of understanding with each state agency that has a program that is able to fund economic development projects for persons in military communities. The memorandum of understanding shall include each agency's responsibilities in granting and administering a loan to a person in a military community.
§201-D Security for loans. In addition to any other security provided by law, if a person in the military community defaults on a loan, a state agency making a loan to the person for a project pursuant to section 201-B(a) may:
(1) Foreclose under a loan agreement in the manner provided by law for foreclosure; and
(2) Liquidate any collateral provided under the loan agreement to recover any outstanding debt.
§201-E Rules. The director may adopt rules under chapter 91 to carry out the purposes of this part."
SECTION 2. In codifying the new sections added by section 1 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 3. This Act shall take effect upon its approval.