Report Title:
Economic Development; Military Communities
Description:
Reinstates the Hawaii capital loan revolving fund scheduled to be repealed 7/1/04; allows loans for businesses threatened by military base realignments and closures. (SD1)
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2662 |
TWENTY-SECOND LEGISLATURE, 2004 |
H.D. 1 |
|
STATE OF HAWAII |
S.D. 1 |
|
|
A BILL FOR AN ACT
relating to economic development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that financial resources are not being made available to new and existing small businesses that seek assistance through private or conventional lenders. This support is important as these small businesses play an integral role in the development of alternative industries, and employment growth.
The legislature further finds that businesses in communities located near military installations may be threatened by military base realignments and closures or capacity reductions.
The purpose of this Act is to assist new and existing small business and those businesses threatened by military base closures and realignments that encounter difficulty when seeking assistance through private or conventional lenders.
SECTION 2. Section 210-3, Hawaii Revised Statutes, is amended to read as follows:
"§210-3 Hawaii capital loan revolving fund. (a) There is established the Hawaii capital loan revolving fund into which shall be deposited all moneys received as repayment of loans and interest payments as provided in this chapter[.]; provided that the total amount of moneys in the fund shall not exceed $1,000,000 at the end of any fiscal year. The department may utilize a portion of the moneys contained in the Hawaii capital loan revolving fund for programs associated with administering the fund and its mandated purpose. The department may transfer moneys from the Hawaii capital loan revolving fund established by this section to the Hawaii technology loan revolving fund established by section 206M-15.6, the state disaster revolving loan fund established by section 209-34, [the Hawaii innovation development fund established by section 211E-2,] or the Hawaii strategic development corporation fund established by chapter 211F, and moneys from these funds shall be disbursed by the department or the director pursuant to chapters 206M, 209, 210, [211E,] and 211F, respectively. The department or the director may transfer moneys from the state disaster revolving loan fund [and the Hawaii innovation development fund] to the Hawaii capital loan revolving fund for disbursement pursuant to this chapter.
(b) The total amount of moneys transferred to the state disaster revolving loan fund[,] or the Hawaii capital loan revolving fund[, or the Hawaii innovation development fund] shall not exceed $1,000,000 for each respective fund within the calendar year. Any transfers to or from the Hawaii technology loan revolving fund shall be approved by the corporation's board of directors.
(c) Notwithstanding subsection (b) to the contrary, the total amount of moneys transferred between the state disaster revolving loan fund and the Hawaii capital loan revolving fund [or the Hawaii innovation development fund] shall not exceed $1,000,000 within the calendar year if the governor proclaims a state disaster pursuant to section 209-2.
(d) The department shall report any transfer of funds made under this section to the legislature within ten days of the transfer."
SECTION 3. Section 210-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The department of business, economic development, and tourism may make loans to small business concerns for the financing of plant construction, conversion, expansion, the acquisition of land for expansion, the acquisition of equipment, machinery, supplies, or materials, or for the supplying of working capital. The department may also make loans to assist businesses located in communities near military installations to develop infrastructure to minimize the possibility of or assist in the mitigation of the adverse effects of the closure or reduction in capacity of a military installation. The loans may be made in conjunction with loans made by other financial institutions, including the Small Business Administration. Where the loans made by the department are secured, the security may be subordinated to the loans made by other financial institutions, when the subordination is required to obtain loans from such institutions. The necessity for and the extent of security required in any loan shall be determined by the director of business, economic development, and tourism."
SECTION 4. Act 178, Session Laws of Hawaii 2003, is amended by amending Section 66 to read as follows:
"SECTION 66. This Act shall take effect on July 1, 2003, provided that:
(1) Sections 1, 2, 3, 4, 5, and 6 shall take effect on June 29, 2003;
(2) Sections 9, 10, 11, 12, 13, 14, 15, and 16 shall take effect on June 30, 2003; and
(3) [Sections 7 and] Section 8 shall take effect on July 1, 2004; provided further that any remaining balances in [the Hawaii capital loan revolving fund and] the Hawaii strategic development corporation revolving fund shall lapse to the general fund."
SECTION 5. Act 178, Session Laws of Hawaii 2003, is amended by repealing section 7.
["SECTION 7. Section 210-3, Hawaii Revised Statutes, is repealed."]
SECTION 6. There is appropriated out of the Hawaii capital loan revolving fund the sum of $1,000,000, or so much thereof as may be necessary for fiscal year 2004-2005, for the operating expenses of this fund, and to carry out the purposes of the capital loan program. The sum appropriated shall be expended by the department of business, economic development, and tourism.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on June 29, 2040.