Report Title:

High Technology Development Corporation; SPRB

Description:

Authorizes the issuance of $100 million in special purpose revenue bonds by the HTDC to assist Townsend Capital, LLC, to finance a wet lab space and a biotech incubator. (SD2)

HOUSE OF REPRESENTATIVES

H.B. NO.

2739

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

S.D. 2


 

A BILL FOR AN ACT

 

RELATING TO the issuance of SPECIAL PURPOSE REVENUE BONDS by THE High TECHNOLOGY DEVELOPMENT CORPORATION.

 

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

SECTION 1. Biotechnology-related research and development represents one of the fastest-growing industries in the world and has made significant advancements in medical treatment and technology in past years. In addition to its contributions in the field of medicine, biotechnology-related research and development annually generates billions of dollars in revenue.

Hawaii has taken meaningful steps in becoming an important location for biotechnology-related research and development. With the construction of the University of Hawaii medical school at Kakaako near completion, Hawaii is poised to become one of the leaders in this field. To attract new biotechnology companies to Hawaii, as well as support existing biotechnology companies, additional wet lab space needs to be created and a biotech incubator needs to be constructed. The creation of wet lab space and construction of a biotech incubator will not only assist Hawaii biotechnology companies in their research, but more importantly, it will attract additional biotechnology companies and research to Hawaii. This influx of additional companies and research projects will not only diversify Hawaii's economy but also lead to economic growth.

The legislature finds and determines that the issuance of special purpose revenue bonds under this Act is in the public interest and is for the public health, safety, and general welfare of the State.

SECTION 2. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the high technology development corporation, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $100,000,000, in one or more series, for the purpose of assisting Townsend Capital, LLC, a company, to finance the construction of wet lab space as well as a biotech incubator near the University of Hawaii medical school at Kakaako. The legislature finds and determines that the financing of a wet lab space and a biotech incubator constitutes a "project" as defined in part V, of chapter 39A, Hawaii Revised Statutes, and the financing thereof is assistance to an industrial enterprise.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to chapter 39A, part V, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

SECTION 4. The high technology development corporation is authorized, from time to time, including times subsequent to June 30, 2009, to issue special purpose revenue bonds in whatever principal amounts the corporation shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and any refunding special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for multi-project programs. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2009.

SECTION 6. This Act shall take effect on July 1, 2010.