Report Title:

Economic Development; business incubator

Description:

Creates a business incubator program within the department of business, economic development, and tourism.

HOUSE OF REPRESENTATIVES

H.B. NO.

309

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to business incubators.

 

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

SECTION 1. The legislature finds that business incubators have proven advantageous to start up high-tech companies. The Maui Research and Technology Center and the Manoa Innovation Center strive to provide support services and low-cost space to fledgling companies during their high-risk early stages of development and eventually "graduating" successful companies. This is a formula that works in many other states in the high-tech area and other areas.

The purpose of this Act is to create a business incubator for start up companies that are not in the high-tech area.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter BUSINESS INCUBATORS

§ -1. Short title. This Act may be cited as the "Business Incubator Act".

§ -2. Purpose. The purpose of this Act is to facilitate the creation of non-high technology based business incubators.

§ -3. Acquisition of office space; site selection. (a) The department of business, economic development and tourism is authorized to acquire the rights to building space suitable for the operation of non-high technology based start up businesses. The department shall acquire the rights by the most efficient financial means possible, with the preferred method being the use of a preexisting state facility.

(b) In selecting a site for a business incubator pursuant to this chapter, the department shall give preference to sites located closer to a university that can provide the services required by section 5 of this Act or sites located in communities that are either economically depressed as determined by the department or are within a designated enterprise zone as described in chapter 209E.

§ -4. Availability of office space; rules. The department shall make business space within the building available to non-high technology based start up businesses at a lease rent amount below the prevailing market price for a period of one year. The department shall prepare such forms as may be needed for the application and selection process and shall adopt rules pursuant to chapter 91 necessary for the purposes of this chapter.

§ -5. Services. (a) The department shall make available the following services to occupants of the business incubator site:

(1) business services, including but not limited to, business counseling, tax and marketing advice and research;

(2) centralized clerical devices, including but not limited to, phone, fax, and copier;

(3) opportunities for access to venture capital.

§ -6. Partnerships. Prior to the site selection and acquisition of business space, the department shall secure partnerships with the University of Hawaii, other private universities, and private practitioners to provide the services required by § -5.

§ -7. Equity swap. In exchange for the services and below market rent business space provided, a business that is selected to occupy a space within a business incubator and accepts the selection shall exchange a mutually agreed equity interest in the business to the state prior to relocation to the business incubator.

§ -8. Definitions. For purposes of this chapter, "non-high technology based business" shall mean those businesses that do not meet the definition of "qualified high technology business" under section 235-7.3.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $_________, or so much thereof as may be necessary for fiscal year 2003-2004, for the purpose of acquiring office space for a business incubator.

SECTION 4. This Act shall take effect on July 1, 2003.

 

INTRODUCED BY:

_____________________________